I Love Credit Cards!

Do you know that credit card can be a great personal wealth management tool? I mentioned before the benefits of credit card, as long as you don't abuse it, it actually offers lots of goodies! Think about it this way, where on earth can you get an interest free "loan installment" without the hassle of submitting application form, engaging legal procedures, collateral or a guarantor to secure the credit? Credit card of course! Banks are so innovative these days that some of them are offering installment terms from 3 to 36 months interest free! This is really great especially for big ticket items that you plan to purchase (as long as is essential, of course). Imagine the amount of money saved and available for investment return. However, you need to be careful here....just because it's easily available, you should still have a plan that allows you to settle the installment on a monthly basis. Never partially settle your monthly outstanding balance! Keep these principles in mind:

- alway settle in full all monthly outstanding balance.
- have a plan to settle your spending before committing to any purchases
- keep only about 2 to 3 credit cards. Too many can be a burden in managing your spending and worst of all, it could affect your credit rating with the central bank!
- go for credit cards without annual fees. There are many free-for-life credit cards these day as a result of competition!

Not forgetting, ultimately you could also enjoy a nice rewarding gifts for yourself or family from the rewards program. Cool!