If credit cards were horses, I would be crucified by animal lovers the way I’ve been repeating again and again that credit card bills should be paid in full every month. Banks don’t like me very much when I say this, and in fact a friend who is also a banker told me (very nicely but with a hint of acid hehe) that she would like to turn over my account on a silver platter to a competing bank.
Don’t get me wrong. I love my credit cards. I get free tickets to Butuan and Boracay every other year. I get cash rebates too. I manage my cash flows more easily and I don’t rush to payment centers anymore when Meralco says it’s time to pay up. If I could pay parking fees at the mall with my credit card, I would. But as much as I love those shiny plastic things, I hate paying interest more.
Think of this, if you have a P30,000 balance in your credit card and this has been going on for a year, you could have saved at least P12,600 just by paying interest the balance in full. And just to keep it simple, that computation is on straight interest, not even compounded interest. Imagine how many pairs of shoes you can buy with that! (Greedy laughter)
March 13th, 2008 at 5:10 pm
“The person I wish to get fired is Gloria Arroyo,…Because she don’t deserve to stay into her stolen power a minute longer for all the crimes she have done to the filipino people. But, As we all can see it she don’t want to give up her stolen power even though the filipino people already firing her. Why should she step down when there is plenty of money to be made while squatting in Malacanyang Palace. Hindi siya tanga! Ika nga!!!”
Salina ayan ka na nman…ano naman kinalaman ng credit card sa pagpapatalsik mo kay Gloria?
March 13th, 2008 at 11:29 am
1
Ian Says:
February 29th, 2008 at 3:29 pm
ano po card nila?gusto ko rin ng trip to boracay!
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Yeah, Me too! I want a trip to borakay without a credit card. (*.*)
March 13th, 2008 at 2:11 am
8
hachiko Says:
March 3rd, 2008 at 10:00 am
Bravo Salve when u said: “credit card bills should be paid in full every month. Banks don’t like me very much when I say this…”
it’s because these card companies are VULTURES preying on society’s weak - the impulse buyers in the malls, and those desperate enough to borrow at 3.5% a month plus penalties. They can’t pick on the strong like you and me and a good number of bloggers here.
We’re all here at MoneySmarts to become financially strong and independent. So Salve, when banks don’t like us much for paying credit cards in full, consider it a badge of honor. That’s because we won’t be vulture meat!
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Yep! you got it. Otherwise you end-up-giniling! he he he he….
March 12th, 2008 at 5:39 am
2
Peter Says:
February 29th, 2008 at 5:34 pm
Hi Salve-
And your continuous rantings…err..reminders did rub off to me and my wife.
We now pay ALL our credit cards in FULL. We just love using the 0%installment on new appliances we bought for our new condo. [Don’t worry, these are true blue 0% interest (we checked, only 1 price tag, and price is the same on a different store that does not offer 0%.]
Surprisingly, one of the card companies increased our credit limit (for being such good customers) without our request. I can read thru their trick, higher limit, more buying power, higher risk for finance charge (oh how I hate those 2 words). But we’ll gonna prove them wrong.
Cheers!
Peter
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Peter: I hope you know what you doing,…Bank is very tricky watch your back,…grrrr. I mean your credit card. Don’t blick if you do,…todas ka!
The reason I said that because no bank or company going to give you, Or anybody,…Zero interest rates without them making any money. If all bank’s going to do that they won’t be in BUSINESS! PERIOD! Prove me wrong!
Bank of America. He he he he…
March 12th, 2008 at 5:31 am
jigsdr Says:
March 3rd, 2008 at 11:19 am
I am a banker & I extremely agree with this statement “paying Credit Cards in full on due date.” For rookies in this matter, don’t be misled by the “Minimum Amount Due” as this may not even cover for the Interest Due. Unpaid Interest would only compound on your next billing. Moreover, I don’t really encourage the “Easy Payment Plans” as the Interest rate is way over the other sources of like loans.
And please don’t be swayed by the thought of prestige by owning a wallet full of Credit Cards. This may only merit “Pogi/Ganda Points” from people who wish to exploit you.
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This is a very good advice. But, My advice is why bother get credit card if you can afford to pay in cash. The only good thing having credit card when you travel just in case you run out of money you’ll have credit card to use for emergency,…And of course, You must have credit card to make reservation in any hotel.
And Yes,…some people just want to show off their credit card because they think that they’re someone special with all these card’s. I know because most of the people I know have plenty of credit card and they’re bragging on how much money they have. Duh…..