I mentioned in my previous article "2017 Plan List | Summary for a Better Move Forward": I now have 3 credit cards with 3 different billing dates set. A friend asked, why do I need to apply for 3 cards? Wouldn’t it be easier to manage if each card has the same billing date?

In fact, many friends around me have many misunderstandings about credit cards. Some people cannot control their consumption desires after applying for a credit card, and they max out their credit cards every month. After their salary is paid off and they pay off the credit cards, there is not much left, not even enough to pay off the bills, and they eventually become card slaves. More people have heard too many stories about card slaves, and regard credit cards as a scourge, or think that there is no use in applying for a credit card. You still have to pay back the money anyway, which is no different from using cash directly, or think that if you forget to repay the credit card, Isn’t it because I owe a lot of money to the bank due to interest compounding, so it’s better not to handle it?

Before learning about financial management, I did think that credit cards were a scourge. When I first started working, Minsheng Bank staff went to the company to apply for salary cards for us newcomers to the workplace. At that time, we could choose to apply for a credit card at the same time, so we would basically be approved and the limit would be high. In the end, only a few people applied for credit cards, and most people chose to only apply for salary cards. I remember that a colleague whispered to others at the time, "It's better not to apply for a credit card. If you apply for a credit card, the annual fee will be deducted if you don't use it. If you forget to pay back the money, interest will compound, and canceling it will be very troublesome." I listened to this colleague's words, and not only did I not apply for a credit card, I also canceled the annual-fee-free credit card that the university had previously issued (without the overdraft function). Does what my colleague said make sense? Makes sense! But he only knew one, not the other. After I learned some financial management knowledge later, I chose to apply for a credit card. Based on my experience with credit cards, the benefits of credit cards really outweigh the hassles of using them. What’s dramatic is that when I applied for a credit card at Minsheng Bank, which distributes my salary, I was rejected instantly!

According to my experience in using credit cards, credit cards can at least bring me the following benefits.

1. Enjoy the interest-free period

In order to encourage us to use credit cards for more consumption, banks generally have interest-free periods ranging from 20 to 50 days. After we swipe the card for consumption, as long as we pay off the balance before the repayment date, we don't need to pay a penny of interest. This is equivalent to the bank lending us money for free, and it will be in vain if we don’t use it. For those who are good at financial management, they can first use their own money for financial management, deposit it into Yu'E Bao or buy some regular financial products. When you need to spend, try to swipe your credit card, and redeem the financial products and pay them back to the credit card before the repayment date. That's it. Besides, you can now directly use Yu'e Bao to pay off your credit card, which is very convenient.

2. Reduce cash reserves

We usually set aside a portion of current savings or cash as emergency reserves. Once you have a credit card, you can reduce some of your reserves. For example, I want to prepare a current savings of 20,000 yuan as a reserve fund for daily life. But after I have two credit cards with a limit of 10,000 yuan, I can use most of my current savings to do some financial management with higher returns. After I make a purchase with a credit card, I just need to redeem the financial product before the final repayment date and use it to pay off the credit card bill. What I feel most deeply is that the 1,000 yuan in cash I used to put in my wallet was used up in a few days. Once I get used to swiping my card for consumption, putting 1,000 yuan in my wallet can last for a long time.

3. Convenient to keep accounts

I am a person who doesn’t like to keep running accounts. I give priority to using credit cards for daily purchases. The bills sent by the bank every month will have a record of the details of each purchase. This is equivalent to the bank helping me keep accounts. I can see my monthly consumption, easily count my expenditures in a certain area, and provide data support for me to optimize and control my expenditures.

4. Other benefits

For example, you will get points for normal credit card consumption, and the points can be exchanged for gifts. Banks also launch some credit card discounts from time to time. Frequent use of credit cards and timely repayment can accumulate our personal credit. Now and in the future, credit is becoming more and more important to each of us. Good credit is an intangible asset that will benefit us throughout our lives.

There is no standard answer as to how many credit cards are appropriate for each person.

For those who often cannot control their purchases, or those who frequently max out their credit cards, do not apply for a credit card, and cancel the ones you have already applied for. For most people who are more rational in their consumption, it is also necessary to apply for a credit card. For those who know how to manage money and spend rationally, applying for a combination of 2 to 3 credit cards will have unexpected effects.

1. Longer interest-free period

We already know that banks generally give us an interest-free period of 20 to 50 days. Therefore, the interest-free period is not fixed. It may be 23 days or 48 days. So what does the length of the interest-free period have to do with it? It has something to do with your credit card statement date and the time you swipe your card to make purchases. Take the CITIC Bank credit card with the statement date on the 3rd as an example. If you spend on the 3rd, you can only enjoy a 20-day interest-free period. If you spend on the 4th, you can enjoy an interest-free period of up to 50 days. The difference in consumption time is 1 day. , the interest-free period differs by a full 30 days! Generally speaking, for consumption after the bill date of this month, the interest-free period will be longer the closer it is to this month’s bill date, and the interest-free period will be shorter closer to the next month’s bill date. Smart people should choose their consumption time according to the billing date of their credit card to obtain a longer interest-free period. The actual situation is that we cannot control the time when we really need to consume, but we can set the billing date. At this time, the advantages of having several credit cards are reflected. For example, if you have two credit cards and the billing dates are set on the 1st and 15th, it is more cost-effective to use the credit card with the billing date on the 1st between the 2nd and the 14th, and between the 16th and the 31st, the billing date will be the 15th. Credit cards are more cost-effective. As for consumption on the statement date, each bank has different policies. For example, China Merchants Bank can enjoy the longest interest-free period for consumption on the statement date. If you have 3 credit cards, you can set the billing dates as the 1st, 10th and 20th respectively. You can fully enjoy the longer interest-free period by spending with 3 credit cards in combination. Another advantage of doing this is that each credit card has a different repayment date. The original consumption of one card is spread over three cards, and the pressure of each repayment will be less.

2. Higher limit

For those who are applying for a credit card for the first time, banks generally do not give too high a limit. This can be used to increase your credit limit in disguise by applying for 2 to 3 credit cards. For example, when we apply for a card for the first time, we are only given a limit of 10,000. We can apply for credit cards from three different banks at the same time. If each bank gives us 10,000, the total amount is 30,000, which is enough for ordinary people.

3. Services of different banks

If you apply for credit cards from different banks, you can enjoy the services of different banks. Through comparison, you can know which bank has better services and choose a long-term one in the future. There is a certain emphasis on the credit card you use. For example, I have applied for credit cards from China Merchants Bank, China CITIC Bank and Bank of Communications. I feel that China Merchants Bank’s service is the best among these three. Large-amount purchases receive text message notifications, and small-amount purchases also receive reminders on the WeChat official account. After using it for a period of time, I also took the initiative to increase the fixed amount. Bank of Communications has the longest interest-free period, but the service quality is average, the credit limit is low, text message reminders require payment, and the WeChat official account will not remind you of transactions that occurred, and the bill date can only be modified once. CITIC Bank is in between the two, but it can be used to repay JD Baitiao. When I shop on JD.com, I use Baitiao first, and then use CITIC credit card to repay. I can enjoy an interest-free period of up to 80 days (JD Baitiao 30 + credit card 50 days). ).

Finally, if you are a shopping addict who maxes out your credit card every month, pay off your bills as soon as possible and then cancel your credit card. If you are an impulsive consumer, quickly extinguish the little flame that ignites your desire to apply for a card. No matter how many benefits a credit card has, it has nothing to do with you. If you are more self-disciplined and confident that you can use your credit card well, you should also remember three things: you must not overdue, you must repay in full, and you must use the cash withdrawal function of your credit card carefully. Remember, remember!

I hope friends can make good use of credit cards to provide more convenience for their financial management and life.