You might be surprised with the title of the post, since in many of my previous posts, I have not given much credit to the credit cards (pun definitely intended!). Alright, my beef is never really with the plastic itself, since it’s just an inanimate piece of object, barely the size of standard name card. Rather, the way these card issuing banks are acquiring their customers are highly questionable. That’s a story for another day, but today, we’re going to look at how you can benefit from using Plastic.
Photo courtesy of Hey Gem
1) Convenience
It’s definitely way more convenient than looking for an ATM machine or carrying lots of cash in the wallet. Also, you can skip the queue at the cinema if you purchase the tickets directly from their website. It’s not only a time saver, but it also gives you the option to choose your own seats.
2) Online Shopping
Okie, most of us are probably not accustom to making transactions online, since we’ve heard so much horror stories from victim of credit card frauds. However, as long as we practice a bit of caution and exercise some common sense, the reality of online payment is actually not as scary as it sounds. If you are going to buy a ticket from AirAsia, you’ll definitely need a credit card. If you are buying from Dell, you actually get more discounts if you pay online! Yes, there are lots of good deals around if you are paying with plastic.
3) Security
As long as you call the issuing bank immediately after you’ve lost the card, there’s not much risk of someone swiping your card and getting away with a RM5,000 brand new laptop.
4) Traveling
A friend just went to Europe for a cycling trip, and a few weeks before his departure, he actually went over to Citibank just to apply for a card. His reason was because a Citibank card is accepted globally. So, a credit card is your best companion in a foreign land.
5) Record Keeping
A credit card helps you track every transaction you made. Of course, you might not be able to charge a pack of nasi lemak using your card but it can help you keep track of your big ticket transactions and allow you to consolidate them with your personal balance sheet at the end of the month. This is one advantage that cash might not be able to provide readily.
6) Perks and Points
Okay, this should not be the primary reason why you own many credit cards, but since you are already going to spend the money, why not get something in return? Some cards give you free insurance, some reward you with loyalty points exchangeable with vacuum cleaners while some offers direct cash rebate on your purchases.
7) Emergency
Not to be mistaken with the emergency fund that you saved up for rainy days, a credit card gives you the ability to create instant cash, up to as much as your credit limit. This is especially handy when you’re caught in an emergency, for instance, prior to being admitted to a hospital. Most private hospitals require you to pay an up front deposit of RM150 to RM500 before they even allow you to register. And if you’re like me who don’t carry more than RM200 cash in the wallet at any one time, you might just bleed yourself to death in front of the cold-blooded receptionist.
However, with great power, comes great responsibility. The credit card can be your best friend or it can also be your worst nightmare, depending on how you exercise your responsibility. The ability to swipe your future money away is ever present and if you know you cannot handle such temptations, opt for debit cards or get a card that is well within your capacity. If you are earning RM3,000 a month, a card that gives you RM3,000 limit would be a good way to curb you from overspending. Pulling out a glittering Platinum Card from your wallet might show others how much ‘credit limit’ you have, but I would rather have a stack of RM50 notes wrapped in old newspaper anytime, like a motorbike millionaire.
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