Many friends were pushed by bank clerks to apply for credit cards during work. In addition, it is very convenient to scan QR codes with mobile phones to make purchases on the streets. However, using credit cards is very troublesome, so many people’s cards are either Being shelved or preparing to cancel the card, what’s the point of it for people who don’t like to spend too much in advance? Let me use my many years of experience in using credit cards to share with you how credit cards can become a financial lever.
1. Generate a credit record
In this society, it is impossible not to deal with banks. Loans to buy houses, cars, large purchases, investments, etc. all require money, and borrowing money The lowest cost is the bank. It will grant a certain credit limit based on the cardholder's repayment ability. If the credit card has no overdue, arrears and other bad records during use, the bank will determine that the cardholder has good credit and will apply for it in the future. The limit and success rate of a card or loan are very high. For a bank with a white account (no card record), it will be difficult for the bank to determine the creditworthiness of this user. For example, if a person who has never asked you to borrow money and never paid him back suddenly asks you to borrow money one day, will you borrow it?
Therefore, develop your credit in advance and don’t wait until you need money urgently before you think of applying for a credit card. Remember, credit must be accumulated bit by bit.
2. Emergency reserve fund
Everyone will inevitably encounter the "one penny" moment. It is difficult to avoid emergencies. Once encountered, people will be shocked. When you are caught off guard, you need to borrow money from someone to repay a favor. Don't use favors as a last resort if you don't use them lightly. If you understand, you will understand. If you pay attention to maintaining your card and accumulating credit and limit, your credit card will come in handy at this time. Take advantage of the interest-free period of about 50 days (check the bank) on your credit card to make temporary changes to meet urgent needs.
3. Consumption discounts
Spend tomorrow’s money to fulfill today’s dream. Some of your favorite things can be enjoyed in advance if you are short of cash. Of course, this must be within your ability. OK, avoid confiscating it, becoming a stuck god, and becoming a stuck slave. In addition, as we all know, in the era of Internet payment, most points can be generated for eating, watching movies, and various consumptions, and different points can be used to redeem small gifts online, air tickets, star hotel stays, Starbucks, movie tickets, etc. It can also be exchanged for cash on some platforms. Credit card benefits and discounts from various banks are endless, such as restaurant vouchers, free airport transfers, VIP lounges, etc., while debit cards do not have any discounts.
At the same time, some overseas purchases do not require currency exchange. Credit cards with visa or MasterCard functions can be directly swiped for consumption, and automatic RMB settlement makes travel and shopping more convenient.
4. Use credit to create wealth
As mentioned above, credit cards are the lowest cost for borrowing money, so you may have a better idea of ??using credit cards compared to ordinary credit loans. , the cost is as low as 20%, or even lower. As long as you master the skills of using the card well, you can use the credit limit of tens of thousands, hundreds of thousands, or even millions at your disposal. When an investment opportunity comes, don’t worry about your “wallet”. When the ability to make money off the field is limited, why not use external help to get a ticket to play? This is the opportunity given to us by the times.
But credit card is a double-edged sword. Let me give you two words:
First, if you cannot control your desires and only use your credit card to overdraft your purchases, you will become a card slave!
Second, if you consume wisely, maintain your credit card reasonably and manage your finances actively, you will become a rich man!
Arming yourself with a credit card, the purpose of any individual or company is to increase the value of their assets.