by Alex Kee

Created on: October 01, 2007

Using credit cards to pay bills, pays only if you are disciplined enough to spend within your means and clear all your outstanding credit cards debts just before or exactly when they are due.

Credit Card late payment and interest rates are the real hidden cost and hazards of any credit card facilities.

You profit from using credit cards in a few ways:

1. Itemized paper audit trail of you spending in a systematic printed record where you can file and check anytime even years down the road

2. Credit card purchases accord to you a second level of security vis-a-vis cash payment in that at anytime before your credit card settlement you are unhappy with the purchase, you can dispute the charge, return the goods and get a full recharge. This is a very useful recourse and I have used it many times with unscrupulous vendors who tried to make a fast buck from me. Vendors invariably have to indemnify the credit card companies in their merchant agreements and as credit card users, we gain by getting our pipers (the credit card companies) do our bidding, not the vendors.

3. Competition is rive nowadays and both credit card companies and vendors are hungry for business and will offer you "0%" repayment schemes over a period of 6, 12 or even up to 36 months. I have bought massage chairs, notebook computers etc with these easy payment schemes and why not? I get no discounts for paying cash or one lump sum upfront with the credit card and what even opportunity cost that I may have had, had I paid everything upfront is the ease in cash flow and option to use the otherwise tied up capital and all without any interest penalty.
4. Credit card companies also grant you loyalty points so you get a rebate at the end of a period to redeem for stuff.

All in all, my experience with credit card companies had been rather positive and that is because I know how to play them to my advantage and we all should if we want to win the game.

There were many times I have been reminded by the payment counter staff that I need not full settle the balances and that credits facilities are automatic and I just have to pay the minimum monthly payments and continue to enjoy the automatic credit facilities.

I always and politely turn them down because to profit from credit card use, squeeze the last ounce of benefits from them and let them squeeze none from you and this is one instance where being a stone helps.

If you are stone steady with your payments because you have budgeted for it, you will profit not lose from using credit cards.

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