Credit Cards for Anyone ?

Want to Get Credit Cards? Wait!!! 

Is credit card a necessity, a luxury, or merely a tool? 


How do you decide if you should have one? Or more? And which ones?

        Disclaimer: This image (Citibank) is only chosen for graphical illustration purpose. 
                        We do not advocate or discriminate against any bank. 



Let’s have a brief overview of the Merits and Demerits of owning a credit card
and then the ultimate list of credit card fees and charges you should be aware of. 

Merits of Owning A Credit Card:
1.To increase your Purchasing Power
2. Efficient Payment Solution especially for Online Purchases. 
3. Less Cash to carry around. Convenient Option for Frequent Travelers. 
4 .Discounts, Rebates, and Reward System


Demerits of Owning A Credit Card:
1. Unbudgetted purchasing freedom, resulting to overspending unconsciously. 
2.Credit card security issues
3.The interest rates, applicable fees and hidden charges


Ultimately, we have compiled for you a list of the Credit Card charges and fees you might want to ask your bankers the next time you are about to swipe your card.


1.Universal default: rate hikes just because you inquire about car loans or open a new
  credit card account. 
2.Teaser rates: low introductory rate that can hike up by 30{b3cd9db03330b981a5aee3701d2f3640f8f745a409f7c0ba7e060a68b36821c0}! 
3. Minimum payment: you’ll end up paying for way more than you are charged. 
4. Change of Terms: read the fine print disclosure terms, 


“We reserve the right to change the terms (including the APRs) at any time for any reason.” A fixed rate is fixed until the bank gives you at least 15 days notice that it isn’t.

5.Cash advance/ convenience cheques : Higher interest rates than your credit card rates!
6.Penalty Interests and Fees: can be from 7{b3cd9db03330b981a5aee3701d2f3640f8f745a409f7c0ba7e060a68b36821c0} to 27{b3cd9db03330b981a5aee3701d2f3640f8f745a409f7c0ba7e060a68b36821c0}! In addition to a Fee for exceeding
  credit limit!
7.On Time payment: the systematic statement mailing system that gives you less
   turnaround time to pay your bills on time if you rely on statements to remind our bills. 
8. Balance transfer : multiple balance transfers hurt your Credit Scores!
9. Fees, fees and more fees!
10.Exchange rates for overseas credit card purchase. 
11.Surcharge from Issuing Banks for overseas credit card purchase. 
12.Currency exchange fees from VISA, MASTERCARD or AMERICAN EXPRESS for overseas 
    credit card purchases. 
13.National Banks’ charges on usage of overseas ATM. 


Your Credit Score determines your Interest Rates.
In case you are not aware, Debit Cards can be a good alternative when it comes to online payments or convenience of payment methods. The only obvious set back is that Debit Cards do not give you credit advances, thus no increase in purchasing power.

Before we end, we would like to wrap up this post with a friendly note,


Credit Card is a tool to ease purchasing transactions in today’s modern world. 
It is a double edge sword, if you use it wisely, you are enjoying a interest free period with the purchase you made. On the otherhand, if your credit card debts are not settled on time, the evil effect of interest compounding will definitely burn a BIG hole in your pocket. The costs to it can be phenomenal if uncontrolled spending behavior is practiced.
Use it wisely. 

Links recommended for further study:
1.The Ultimate List of Credit Card Charges and Fees 
2.Hidden Fees on Traveling Credit Card Charges 
3. How To Manage Your Credits? 
4.How To Get Lower Credit Card Rates? 
5.The Pros and Cons of Having A Credit Card 
6.The Real Costs of Owning A Credit Card 


Sources from:
http://www.consumersunion.org/pub/core_financial_services/004040.html http://www.bankrate.com/brm/news/cc/20010416a.asp http://moneyfor20s.about.com/od/yourcredit/tp/managecredit.htm http://moneyfor20s.about.com/od/creditcards/ht/lowerccinterest.htm http://www.solveyourproblem.com/debt-free/pros_cons_of_credit_cards.shtml http://ownthedollar.com/2010/03/real-cost-owning-credit-card-year/ 

To know more about what we do, check us out at www.prajna-advisors.my !




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