Credit Card - It’s Priceess

Posted on March 20, 2007
Found Inside the Life Box-> Credit Cards |

Ask anyone, “Is having a credit card worth it?”

They will probably tell you, yes and no.

Yes:
if you would like to build your credit score and buy something online and also to use it in case of emergency.

No:
If you already have money in the bank.

If you are not following me, please read this : In developed countries such as the United States, UK, etc, a person’s creditworthiness is computed by agencies based on your history of purchases and bank balance. Banks work with agencies to secure their transactions such as giving someone credits / loans. Lets face it. Will you give your hard earned or even free money to someone for a while then expect them to pay back to you on time. In Nepal, only a handful of people have credit cards, the monthly payments on credit card bills are made by rich parents, fancy jobs, and corruptions. Nearly 99% of Nepalese do not own a credit card. In Nepal there are no credit agencies. Credit cards are issued by banks verifying bank balance and reference from employer.

Doing shopping online without a credit card is next to impossible, although there are some websites (such as amazon.com) that allows you to purchase items without using a credit card. It offers the option “pay on delivery”. But this is only limited to particular shipping destinations such as within the country; like United States or Canada. So most online transactions do require you to have at least a debit or credit card. So having at least one of them helps.

To build credit score, you start by giving your money to a bank. That amount remains as your credit limit. Your purchase and monthly payments goes to the credit agencies database. As your history is reviewed, they assign you a credit score. Nobody knows just how they do this or what kind of formula is set, generally speaking paying well ahead of the due date, purchasing costly items and paying them well ahead of the monthly due date gives better score. Getting the wrong credit card can have you pay bunches of interest, late fees, activation fees, etc. You know it was your money and that even makes you depressed! Terms and conditions of a contract are written using the smallest possible fonts - so it’s worth buying a magnifying glass to read it thoroughly before getting credit cards! You will be glad you did it! You might also use it to read other advertisements by such as Direct TV, Virizon, Cingular, and you name it. Anything that looks so unreal has a string attached to it and they are hidden in those tiny fonts!

Ok, lets come to the point. I thought this would be an interesting way to finish this post.
An Advertisement (Ad) that we all are too familiar with….

Activation Fee $ 49.99
Annual Account Maintenance Fee $ 99,99
Interest Amount $2451.25, Rate being 20%
Balance This Month : $10512.00
Must pay this Month $250.00
Interest Amount $2451.25, Rate being 20%
bla bla bla $0.99
bla bla bla $999.99

Credit Card… It’s priceless!

Coming up in Next Post in continuation to to this one “Credit Cards - Where to find the best onces ?” Until then, google`um, yahoo`um and live`um (msn)!

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