Saturday, June 23, 2012

Tip and Strategy on Using Your Credit Card

Last week of May, I received a mail from Banco De Oro.  I was happy to have my own SM Advantage Card but shocked to have my own BDO Shop More Mastercard. In short, a credit card.  Actually, I never applied for it although I really wanted to.  Its just happens that I have an account to this bank.

Image from BDO
I was really against of having a credit card but I realized some advantage of it when NEEDED.  Why I was against of having a credit card? My personal perception is about debt and excessive spending. I know for myself that I am not a spender but a saver although I also spend my money when I know I have enough money to spend.

PC Upgrade - my credit card purchase

From the moment I was planning to upgrade my personal computer, I really needed money for P10K. I said, "If only I have a credit card, then upgrading my PC won't be a problem which I can pay it for installment." But P10K is too much for an upgrade and it is good to buy another system unit.  So I asked my IT friends for advice.  I have a dual core computer and I don't want to change the whole thing because I am not a heavy user. My tasks for my online job are article writing, blogging, link building and some graphic design.  I need to retain my dual core processor but upgraded the motherboard, RAM and added a video card.  My plan was not to spend more than P10K and great it was only less than P6K, 0% interest with 3 months to pay.


Since my computer is an investment for my online job. I am confident to pay the installment in just three months.  But before using your credit card, it is really safe to SAVE money EQUALS the worth of your PLANNED PURCHASE.  This is also applicable if you are planning to buy some expensive gadgets.

Gadget I want to purchase: Nikon D3100 - DSLR camera
Price: P30K - estimated budget
Payable to credit card with 0% interest (Y/N)?: Yes
Money need to save before purchasing and using credit card: P30K


While saving money for an estimated budget of your purchase, there is a tendency that the price will get cheaper later.  By the time you reached P30K on your savings, we don't know that the price of Nikon D3100 will be less than P25K because of the latest DSLR cameras out in the market.

Same time, this is hitting several birds in one stone. While having P30K on our savings account, we can put the other P10K on time deposit, another P10K in an (existing) investment with 10% interest per annum and just leave P10K on savings account.  If you have an income which it can pay your monthly dues then you will be safe in paying the gadget and at the same time your money is GROWING.

So how do you use your credit card? Do you use it for your needs or your wants? 

P.S. I am not a financial expert/adviser.  I am just sharing to you some of my strategies that I hope could help. ^___^

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is a blogger/article writer, SEO, graphic designer, web researcher and virtual assistant.I'm practical, open-minded, and very outspoken. Liberated in thought, conservative in deed.