5 Times Credit Cards Are Smarter Than Cash

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We've all heard the admonishments about over-reliance on credit cards. If you don't dutifully pay-off your bill in full every month, debt can quickly mount, and wreck your budget — along with your credit.

Assuming you use credit prudently, however, it can often be a better bet than cash. In fact, the benefits of careful credit card usage are so great, that they often outweigh the simplicity of cash. Here are five solid reasons why credit cards can make more financial sense than cash.

1. They're Safer Than Cash

There are some who feel that cash is safer than cards, but what happens when your cash is stolen or misplaced? There is no getting it back. There is 100% liability on your end and all is lost. Credit cards, on the other hand, offer myriad protections, giving you peace of mind when your card is lost or stolen. You're also able to track purchases and spending more efficiently, and spot fraud or card misuse.

Sure, hackers can steal your credit card information, and a lost card presents challenges of its own. But there's no financial institution ready to help when you lose cash. Credit cards come with the backing and help of professional staff trained and equipped to handle such situations.

2. They Help Build Credit

As much as we fear over-using credit, not having any credit can have its own repercussions. Lack of credit can hamper your ability to take out necessary loans (such as auto loans or mortgages) and even limit more basic things, such as rental car options. Have you ever thought about renting a car, but all you had was a debit card or cash? From my experience, many companies such as Hertz or Enterprise will do a soft credit check to see if you are eligible for the rental. Plus, having established credit also gives you a shot at better interest rates and expedites approvals on loans. 

3. You Can Earn Cash Back or Travel Rewards

Many credit card companies offer cash back incentives — some as much as 6% on grocery purchases, or even 5% on shopping purchases. Cashback incentives add up and you'd be amazed after 90 days just how much cash back you've earned. That cash is yours to keep — no strings attached. (Check out one of our favorites: Citi Double Cash Card)

A travel rewards credit card can get you even more value from your purchases. Redeem your earned miles for free flights, stays, and upgrades. In addition, many cards include travel perks like priority boarding, exclusive lounge access, free checked baggage, and more. (Check out our favorite travel card: Chase Sapphire Preferred)

4. There Are Insurance Protections

Credit cards also offer insurance perks. Just by using your credit card you have access to multiple insurance options, such as supplemental insurance, lost luggage insurance, travel and accident insurance, and more. Plus, some credit card companies also give you the ability to halt or reduce payments during periods of change or difficulty — such as a relocation, new baby, new job, unemployment, or death in the family.

5. Cards Offer Purchase Tracking and Customer Service

Credit cards enable you to more efficiently track your purchases, and let you dispute payments should problems arise. Plus, credit card companies' customer service hours extend well beyond those of your local bank branch, allowing you to resolve issues at any time. And though ATMs can be used 24 hours a day, for larger purchases, credit cards facilitate bigger spending at any time of day.

When else do you prefer to use cards over cash?

Source:https://www.wisebread.com/5-times-credit-cards-are-smarter-than-cash

5 Credit Card Perks

Ever lost your luggage? Had a new purchase gone on the fritz just outside of the 30-day return window? Come down with the stomach flu the day before a long-awaited cruise?

If so, you know how costly, not to mention frustrating, these scenarios can be. It’s hard watching both time and money run down the drain. But you may have a makeshift insurance policy against these experiences right in your wallet: your credit card.

Yes, credit card benefits can extend to coverage of the aforementioned issues, among many others, as long as the original purchase was put on the card. It’s all in the fine print, which many consumers toss without reading, missing these perks altogether. "You have to read the terms and conditions on your card," says Bill Hardekopf, founder of LowCards.com. "And if you want to take advantage of one of these benefits, I highly recommend calling your issuer and talking about the benefit details over the phone."

That’s because the policies can vary, as can the requirements for meeting them. But here are five benefits to look for:

Travel protections. These benefits can include both delayed luggage insurance, which will cover the cost of any "essential" items you need to purchase until your luggage is returned (up to a limit), and lost or damaged luggage insurance, which will cover replacing luggage that is not found -- again, up to a limit. Many cards also offer trip cancellation service, which can reimburse you if your travels get canceled and the services you've booked are nonrefundable.

Extended warranties. If you’ve ever purchased an electronic item, you’ve probably been offered an extended warranty -- for a price. You may not need it if you’re making the purchase with a credit card. "The manufacturer may give you a year’s warranty. If you buy it with a credit card, the issuer in its terms and conditions may give you an extra year of warranty on that item," says Hardekopf. "That may be adequate protection and you can skip the extended warranty from the retailer." On top of that, many cards offer you additional coverage (up to a limit) if an item you purchase is damaged or stolen inside of a set period of time -- often 30 to 90 days, says Beverly Harzog, a credit card expert and author of "The Debt Escape Plan."

Return protection. If you make a purchase with an eligible card, and the retailer won’t allow you to make a return, your credit card may offer a refund, says Harzog. There will be a limit on the time frame -- often within 90 days of purchase -- and the reimbursement amount.

Roadside assistance. If you’re stranded, you may be able to call the number on the back of your card for access to emergency services such as a locksmith, tow truck or tire change. You’ll pay for the cost of service, or in the case of Discover, a flat fee of $69.95 for any covered services rendered. Again, read the fine print on this one.

Zero liability. In this age of data breaches, this may be the most important benefit of all. "When you use a credit card, you’re really protected if it or your information gets stolen. With cash, you’re out of luck, and with check or debit, the thief has stolen your money and you’re trying to get the bank to replace it. With a credit card, you’re not out your own money," says Hardekopf.

This is one good reason to always use a credit card when shopping online, and traveling, as long as you pay off the balance in full, before triggering any interest charges.

How Many Credit Cards Are Enough For Singaporeans?

Singaporeans love their credit cards.

According to the statistics provided by the Monetary Authority of Singapore (MAS), there were 9,721,768 credit cards and charge cards in circulation in Singapore in May 2015.

And there are 1.58 million credit card consumers - so that means a credit cardholder holds an average of 6 cards each.

That's nothing compared to Walter Cavanaugh of California, US, who holds the Guinness World Record for having the most credit cards - he had 1,497 credit cards in 2005, a record he held since 1971!

All his cards add up to a total credit line of $1.7 million dollars!

Ever wonder if there is a right number of credit cards you should have? How many are too many, and how many are too few?

There isn't really a magic number of credit cards one should have; it's about how you manage them that counts.

We at GET.com have come up with a list of things you need to consider:

Does The Number Of Credit Cards I Have Affect My Credit Rating?

Before you are approved for a loan or mortgage by the bank, there are several factors that the bank will take into consideration before they lend you money. One of them is your credit score.

A credit score is a number used by banks as an indicator of how likely you will default on a debt. There are many factors that can affect your credit rating including - current and past credit history, annual income, spending habits, and how many other types of loans you currently have.

In Singapore, the score ranges from 1000 to 2000, with 2000 being the best, and 1000 the worst. While there isn't really much effect from having too many credit cards until you can't afford to pay your bills or keep rolling over your bill each month, banks like to see that you have established a responsible credit history without going overboard.

This means that if you have credit cards and pay them on time, that actually helps your credit score, compared to someone who doesn't have a credit card and thus has little or no credit history.

Although having more credit cards may not affect your credit score, late payments on your credit cards will.

More Credit Cards = More Rewards

Compared to other countries, credit card issuers in Singapore understand that having attractive rewards is what entices customers to sign up with them.

That means banks here offer a wide range of credit cards to cater to the different needs of consumers. There are cash back credit cards, travel credit cards, rewards credit cards, petrol credit cards, low-interest credit cards, and the list goes on.

Cash-conscious Singaporeans may prefer cash back credit cards, whereas people who like to travel may go for travel credit cards that give them travel-related perks.

Singaporeans who like freebies will like rewards credit cards that give you points for every dollar you spend on the card and you can later redeem those rewards points for shopping vouchers or merchandise.

Since you are going to spend the money anyway, using the best credit card helps to maximize the rewards you can get.

Depending on your lifestyle, it may be more worthwhile to focus on just a few credit cards and concentrate on the highest percentage of your expenditure on these cards.

Spreading your expenditures over more than 5 cards may end up reducing the number of rebates you earn since you spend less per card.

Managing Your Credit Cards

Whether you have one or a few credit cards in your wallet, you need to have a system in place that enables you to pay your credit card bills on time each month.

The best and simplest way of doing that is to set up a GIRO deduction of your card bills.

Simply fill up an interbank GIRO form to link up your bank account to your credit card account, and voila, your credit card bills will automatically be deducted from your bank account each month.

Of course, you should also make sure you have enough to repay your card bill each month. If not, you will incur interest charges, and that's not a good thing.

In a nutshell, additional credit cards will likely not hurt and they could even help your credit. How many is right for you really depends on how comfortable you are at handling and managing them.

Source:https://sg.finance.yahoo.com/news/many-credit-cards-enough-singaporeans-010102863.html

6 Times to Use Credit Cards Instead of Cash

Credit cards

You might prefer to use cash if you're not a big fan of debt, but don't give credit cards the cold shoulder so quickly. Believe it or not, there are times when it makes more financial sense to use a credit card than to pay in cash. Yep, you read that right. If you know how to use credit responsibly — and if you're committed to only buying what you can afford — there are benefits to enjoying that satisfying swipe. Here are six times it's better to pay with plastic. (See also: Awesome Credit Card Perks You Didn't Know About)

1. Buying Electronics

Whether you're buying a flat-screen TV or a small appliance for your kitchen, the retailer will probably offer an extended warranty at checkout. If you're spending hundreds or thousands for an item you intend on keeping a long time, buying an extended warranty makes sense, especially since many manufacturers only offer a one-year warranty.

If you're thinking about getting an extended warranty, this isn't the time to pay for an electronic appliance with cash. It might come as a surprise, but several credit cards offer extended warranties for electronics as a cardmember perk. Use an eligible card to pay for an item and you might receive a free extended warranty that matches the manufacturer's warranty up to one year. Coverage varies by credit card, so contact your credit card company in advance to know your limits.

2. You Want the Best Price for an Item

There's nothing more frustrating as a savvy consumer than buying an item — only to find it cheaper somewhere else (which is why you should also comparison shop online first). But there's an easy way to save yourself the headache of exchanging items you've overpaid for: Since many credit cards offer price protection, simply pay using your plastic. If you make a purchase in retail stores or online, and later find the same item at a lower price within a specific length of time (usually 90 days), your credit card company may refund the difference up to a certain amount. Not all credit cards offer price protection, so you'll need to read your cardmember benefits to see if you're eligible.

3. You Want to Earn Rewards

Reward credit cards open the door to a variety of freebies, ranging from airline tickets to merchandise. Use a rewards credit card and earn points or cash back for every dollar you spend, then redeem points for travel, gift cards, or even a statement credit. You don't receive these types of perks when paying with cash. Just make sure you pay off your balance every month to avoid high-interest debt.

4. You're Traveling Overseas

Bringing cash when going overseas might seem like the best way to stay on budget, but it's a dangerous way to travel. Lost or stolen cash can't be replaced. On the other hand, if your credit card is lost or stolen, you're not liable for unauthorized charges. Credit is also a good choice because some credit cards don't have a foreign transaction fee, thus allowing you to convert purchases into dollars for free. Depending on the plastic, this can save you the typical 1%-3% foreign transaction fee imposed by some credit cards.

5. You Need to Keep a Record of Purchases

Whether you're running a business or keeping a record of personal expenses, it's easier to track spending with a credit card. You can go online, pull up monthly statements, and view any transaction. With cash, your receipt is the only record, and if you misplace the receipt, you can lose track of where you spent the money.

6. You Have Limited Cash

If you have an emergency, like a home or car repair, using cash you've set aside for bills can strain your finances and cause additional hardship. Some people warn against using a credit card, especially when you can't pay off a balance anytime soon. But if you have a credit card featuring a 0% introductory rate for the first 12 to 18 months, it makes more financial sense to use credit and keep your cash available for other needs. Since you're not paying interest, it's the same as paying cash, so long as you pay off the balance during the 0% APR period. Make sure you check the credit card terms. Some credit cards only apply 0% interest to balance transfers, whereas others apply it to balance transfers and purchases.

What does a credit card instead of cash make more sense for you?

Source: http://www.wisebread.com/6-times-to-use-credit-cards-instead-of-cash

7 Hidden Perks of Credit Cards

From extended warranties to roadside assistance, some credit cards

offer more than just credit

There are so many warnings that come with credit cards – don't abuse them, don't let a thief get his grubby hands on them – that it's easy to forget there can be perks to using them. And these extend beyond the obvious, ultimate perk: being able to pay for merchandise or services when you don't actually have cash in the bank to pay for them.

So if you'd like to better utilize your credit cards, you may want to sniff out any bonuses you're unaware of. "The quickest and easiest way to locate that information is to go directly to your card issuer's website," says Randy Hopper, vice president of credit cards for Navy Federal Credit Union in Vienna, Virginia.

Once there, Hopper says those perks will typically be located in the product program guide and disclosures space.

You may also find them hiding in the benefits and services section or some other out-of-the-way spot on the website. While some credit cards have no special benefits, here are some of the perks you may have been missing out on:

Extended warranties. Say your television went kaput. You might be covered for that. Visa, MasterCard, Discover and American Express all offer credit cards that extend a manufacturer's warranty for an extra year. Just remember that it isn't good enough to be a customer – you'll need to have purchased the TV with your credit card and not with a debit card, check, or a store credit card. That's generally the case with most credit card perks: You need to have bought the product or service with that particular credit card.

Roadside assistance. Some perks require no upfront purchase. If your car breaks down, your credit card may offer roadside assistance. But slow down before canceling your current roadside assistance without looking over the terms first. Often, what your credit card will do – after you’ve called the number on the back of your card – is call a local tow truck driver for you. Then, you'll pay for the costs with your credit card. (But some cardholders with premium cards do get free roadside assistance.) While it may not seem like the flashiest perk in the world, you might think otherwise if you find yourself stranded on a country road at midnight.

Guaranteed returns. You know how it goes in the world of shopping. You buy some merchandise and for whatever reason, you later wish you hadn't. Maybe it didn't fit. Maybe it's something you just aren't using. But the return date is passed, and you're stuck with it.

Or maybe not. Some credit cards have a guaranteed return policy – if the store won't give you your money back, the credit card will. But before you start scouring your house for unworn items with the tags still on, know that "there are rules and limitations," says Matt Schulz, a senior industry analyst for CreditCards.com. "For example, the item should be in good shape, and you should have the original receipt. You should also have the original packaging."

There are also price limits. "Many issuers have limits of around $200 to $500. Still, getting $200 back is a lot better than getting nothing at all," Schulz says.

Special access to airport services. Frequent fliers often relax in posh airport lounges that keep out the riffraff (regular travellers, like this writer). But it doesn't have to be that way. Some high-end credit cards allow free access to an exclusive airport and railroad lounges, says Bruce McClary, spokesman for the National Foundation for Credit Counseling.

"Nobody wants to be the person who pays for an expensive public Wi-Fi connection, only to find out afterward that their credit card allows the same access at no charge," McClary says.

Event ticket protection. If you end up missing a concert, Broadway show, or some other big event due to weather, a car wreck, or perhaps even lost tickets, some credit cards, like Citi Prestige and Citi/AA Advantage Executive cards, will refund your money. (Obviously, restrictions apply, so read the fine print.)

Emergency travel assistance. If you're travelling overseas and you run into trouble, some credit cards will kind of function as your own, personal American embassy, offering you phone-based translation services or helping you find a hospital, for example. And emergency or not, many credit cards, especially the high-end ones, also specialize in assisting with lost luggage.

If you're in Bahrain, but your suitcase is in Boise, your credit card might give you an allowance to buy enough of a wardrobe until you catch up with your suitcase. Every card is different in how it assists you when it comes to missing baggage. Some cards focus on helping you find your luggage, while others offer money to keep you afloat. Still, other cards will replace your luggage if it's stolen.

Replacing stolen and damaged items. Some credit cards will replace stolen merchandise purchased within the last 90 days. But there are exceptions (there are always exceptions). For instance, some Discover credit cards will replace most merchandise, but nothing considered perishable – food and even perfume – is covered. They also won't replace any items stolen from a car.

And if you pay your cell phone bill with your credit card, your credit card may have a policy that replaces your damaged or stolen phone. But not your lost cell phone.

That's why it helps to have a reality check. There are enough restrictions and guidelines surrounding these benefits that you can't rely on your credit card to bail you out of every jam. Nonetheless, many credit card issuers offer reasonable perks designed to help consumers who fall victim to unfortunate circumstances. A police report demonstrating that your iPhone was stolen from you at gunpoint demonstrates to your credit card issuer that what you say happened did. If you left your new iPhone on the front seat of your car, and it was stolen, your credit card probably won't help you out.

In other words, your credit card will often save you from bad luck. Very rarely will it save you from yourself?

Source: http://money.usnews.com/money/personal-finance/articles/2015/01/29/7-hidden-perks-of-credit-cards?

Does Everyone Need a Credit Card?

Payment History

Americans' reliance on credit cards has been declining steadily since the Great Recession, according to an April 2014 Gallup poll. In fact, respondents reported that they are carrying less credit card debt overall and are more likely to pay their balance in full and on time compared to the early 2000s.

The survey results, based on interviews with over 1,000 adults ages 18 and older nationwide, may notate a positive trend in the financial affairs of Americans who have been increasingly bombarded with bad news about the economy in recent years. And less reliance on credit should be a good thing, right?

Well, it is and it isn't. According to personal finance experts, being debt-free is always a good thing, but there are disadvantages to living without any sort of credit card at all. This begs the question, "Does everyone need a credit card?"

A Matter of Convenience

Whether everyone does or doesn't need a credit card, people who go without one(or several) will certainly face some inconveniences in their lifetime, especially when it comes to travel. Why? Because hotels and rental car agencies almost always require a credit card to secure a reservation, and some even require that you put a card on file in order to cover incidentals. Without a credit card, you may not get the reservation you want, or you may have to jump through additional hoops that are not all that pleasant.

Of course, using a debit card is possible, but doing so might result in several hundred dollars of your actual money being put on hold in your account. If you're flush with cash, this may not be an issue for you. But if money is tight? You may have a problem.

No Credit, No History

While being wary of credit card debt is a good reason to avoid credit cards altogether, that decision could come back to bite those who wind up needing credit at any point in their lives. Opting not to build any kind of credit history could make it difficult to take out a loan for a house or car in the future, especially if your current credit report is virtually blank. How can lenders loan you money when they have no way of knowing if you've ever repaid anyone back?

According to the credit bureau Experian, "having no credit history is almost as bad as having a negative credit history," and everyone should strive to have some credit history to point to.

Credit Card Perks

But having credit isn't just about avoiding the hassle and earning the ability to borrow more money. There are some legitimate perks that come with having a few good credit cards as well. For example, many credit cards offer fraud protection, meaning that they will cover your losses if your card is stolen and used for purchases. Once you report that a credit card has been stolen, the Federal Trade Commission states that the maximum amount of money you could be on the hook for is $50 per card.

That may still sound like a lot, but compare it to what might happen if someone stole your debit card and managed to bleed your account dry. According to the FTC, if you report your debit card stolen more than two days after the loss or theft has taken place, the most you can lose is $500. However, if you report the loss later than 60 days after it occurred -– perhaps because you didn't notice a fraudulent charge -– your bank is not required to help you recover your losses in any way, shape, or form.

Other credit card perks include credit card rewards such as cash-back and airline miles, travel protection, price protection for large purchases, and even rental car insurance.

These are just a few of the reasons why most people genuinely need a credit card, whether they choose to use it frequently or not. Just remember, having a credit card doesn't mean you have to go into credit card debt. You have the power to live a debt-free life; you just need to commit to it and learn to use your cards in a way that benefits you.

Why You Should Keep Your Credit Cards

Are you thinking of canceling 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, but you also 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 

Source:  Why You Should Keep Your Credit Card

10 Advantages of Credit Cards

Are you thinking of giving up your credit cards? Don’t. Credit cards are useful financial tools when you know the proper way to use them. Here are ten ways to use your credit cards to your advantage and spend less.


1. Cashless spending: It is much safer than carrying a lot of cash in your purse. It is convenient when you are running short of cash to buy an urgent and essential item.

2. Use your cards instead of cash: Use your credit cards instead of the amount that you have set aside for your monthly spending. You pay less when you use a credit card that gives you a discount for the purchases of your grocery and petrol. At the end of the month, you just issue a cheque from the account where you keep the money for your monthly expenses. You can’t get a discount when you pay in cash.

3. Simplify your life: Let your credit card settle your utility bills, insurance premiums, and other recurring expenses. There is no need to go to many places to pay for all these ongoing payments.

4. Big-ticket item: Get zero interest installment plan for the purchase of a big-ticket item. You can stretch your payment up to 36 monthly installments without incurring interest. However, you have to make sure that you have included the amount in your monthly budget.

5. Free credit: To avoid late payment charges and interest on the outstanding amount, pay the monthly bills fully and promptly. This is the way to enjoy credit free of charge for one month. Where else can you get credit to make purchases without interest and security?

6. Establish your creditworthiness: It is also a great way to establish your creditworthiness when you pay the monthly bills fully and promptly. It is an indication that you can be trusted to obtain credit and you have the means to pay and you do make payments promptly. When you apply for a loan in the future you will be considered favorably.

7. Best for holidays: See the world with peace of mind just by carrying your favorite credit cards. You can withdraw cash in local currency at any ATM for sundry expenses. It is better than travelers' cheques. Credit cards are accepted worldwide, take your cards along for a carefree holiday.

8. Online purchases: Online purchases are made possible with credit cards. It is safe and easy. If the transaction is not in the order you can always dispute it and cancel the order with no charge to your card.

9. Track your spending: Each and every transaction that you have charged to your cards is itemized and listed in the monthly statement. You will know when and where you have spent your money. There is no way to check your spending if you use cash unless you are willing to spend time to record where your money has gone.

10. A budgeting tool: You know precisely your spending pattern from your monthly credit card statements. It is a useful tool to budget and control your future spending.


The most important thing to remember is that you don’t use your credit cards to obtain credit and incur debt. Use your cards like using your own money. Stop charging it when there is no fund available.