Why are we slaves to credit cards?

Credit cards are very important in capitalism, they are convenient to use, and they help us a lot in our lives.

However, just as there is nothing that is only good, there is always a double-edged sword.

If you use them wrongly, you can face the worst results of bad credit or a credit rating downgrade (the most important thing in capitalism).

Why do we have to have our paychecks come and go from our bank accounts?

First, let's look at the credit card payment date.

Assuming the payment date is the 25th,

Usually, the expenses used based on the payment history from the 11th to the 13th of the previous month are charged on the 25th.

Card usage date: For example, payment history used from May 12th to June 11th

Card payment date: For example, June 25th

Payday: For example, June 25th

In other words, credit card payment history after June 14th is transferred to July payment.

It is shifting responsibility to me next month.

There are many services that should not be used on credit cards, such as cash service (high interest, lower credit rating), card loan (high interest, lower credit rating), and revolving (high interest, lower credit rating, and responsibility is transferred to me next month).

However, if you use these without a plan, your credit rating will eventually drop and you may end up with a really bad credit score.

So why is your credit rating important?

Your credit rating is the amount of money that a bank can lend you based on your rating and the difference between the certification agency and the credit rating.

The certification agency is whether you can get a loan from a first-tier financial institution, and in the case of a bad credit score, you cannot open a new account, cannot create your own assets, cannot get a loan, and even cannot get a cell phone installment plan that we always do.

If you are someone who cannot get a loan from a first-tier financial institution, you should reflect on yourself and work hard to raise your credit rating.

In the capitalism we live in today, credit is the most important thing and is a necessity for living life.

On the other hand, if I assume that I have some money,

Friend 1 doesn't borrow money from others often, has some assets, and when he asks for money, he tells them precisely the purpose and repayment date.

Friend 2 is rumored to borrow money from friends often, doesn't have many assets, has a lot of loans, and makes all sorts of excuses (especially small living expenses) to ask for money.

(Honestly, the fact that he borrows small living expenses shows how irresponsible he is when it comes to finances.)

Who would you want to lend money to?

I think everyone would be Friend 1.

When lending money, you have to look at the person's job status (is he able to repay?), assets (do he have assets that can be recovered if he can't repay?), and credit rating (has he borrowed and repaid well in the past?).

A credit card is a really convenient and good necessity.

However, you should use the credit card that best suits you, have a good sense of finance, and try to use a check card to prevent your salary from being transferred directly to the credit card company.


One-line summary: Don't pass the responsibility on to yourself next month, and don't use credit card cash advances, card loans, or revolving.

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