Why You Should Keep Your Credit Cards

Are you thinking of cancelling your credit cards for good? Before you do, consider the following:

1. Creditworthiness: The way you use your credit cards can be proof of your creditworthiness. When you pay promptly every month for the full amount that you have incurred, it is an indication that you are a responsible person who can be trusted to grant credit. The history of your credit card transactions will be a good reference when you apply for a car loan. You will be considered favorably and most likely your loan application will be approved without the need to get a guarantor. 

The most important thing for a young man is to establish credit - a reputation and character. ~John D. Rockefeller

2. Convenient: It is more convenient to use a credit card rather than cash because it is not safe to carry a large sum of money in your pocket. Moreover, every purchase by credit card is documented and you can dispute the transaction if you think it is not in order.

3. Great rewards: Recently, I have got a Timex watch from the bank. I have just redeemed the points accumulated over a period of time for every dollar charged to my card. When you pay cash you cannot get a free watch or any other valuable items.

4. Track your expenses: You can’t ask for a bill every time you buy something. However, there is always a slip when you charge it to your card. Your spending on your cards is an effective way to track and control your expenses.

5. Online transactions: You can’t get things done without a credit card. The other day I have just discovered that I have to pay by credit card online in order to process my son’s application for a student pass in Singapore. Not only that, you can’t do online purchases without a credit card.   

6. For needs only: There is one catch here to keep your credit cards. You have to be self-disciplined to spend on your needs only. For every dollar that you have charged, it is to be backed up by the same amount of cash in your bank and ready to pay at the end of the month. The other thing is to keep only two cards, One Visa and one MasterCard. When a transaction for one card is out of order, you still can use the other one. 

Self-respect is the root of discipline:  The sense of dignity grows with the ability to say no to oneself.  ~Abraham Joshua Heschel

7. No incentive when you pay by cash: You can’t pay less when you pay by cash. Credit card issuers offer savings in the form of rebates when you shop at certain grocery outlets and petrol stations.

The most important thing is not to incur credit card debt by getting what you want. Take advantage of your credit cards and use them wisely.

Self-discipline begins with the mastery of your thoughts. If you don't control what you think, you can't control what you do. Simply, self-discipline enables you to think first and act afterward. ~ Napoleon Hill