How to use credit card & Cash line wisely?

[melnjes]

Never ever use Cashline. I used it once accidentally (pressed the wrong button on the ATM) and they charged me interest on a daily basis, even for the time I got the bill and they received the cheque! :cry:

 

[student]

If you are the financially prudent type, and not given to overspending, then feel free to make full use of credit cards. In fact, you would be quite foolish not to.

This is the crux of the issue.

Unfortunately most people are not.

 

[Hexlord]

Pardon me, but I wish to add... isn't credit cards used for the sake of convinience and not for obtaining products that are beyond one's financial means?

 

[reachme2003]

you are right. a prudent person will use credit card/s for its convenience. he will be the master of the cards and the cards will be his servant.

Pardon me, but I wish to add... isn't credit cards used for the sake of convinience and not for obtaining products that are beyond one's financial means?

 

[reachme2003]

i was waiting for the mrt train at the platform, noticed marketing panels pasted on the glass barriers in the station. GE capital and Singpost promoting fuss-free loans for whatever purposes. repayment terms of 2 yrs to 3 yrs. took out my hp calculator and did quick calculations. interests range from 21% to about 32% p.a. repayment over 3 yrs' term is more costly than using one's credit card. alerts!!

 

[LENS]

thank you. i just got a reply from cashline too.

>Refer to your first enquiry. We would like to clarify that DBS Cashline is a revolving line of >credit, thus interest is accrued on a daily basis at an interest rate of 16.5% p.a. until full >payment, including the accrued interest has been received. Interest will start to incur >when you do a debit transaction from the account.
>Refer to your second enquiry. Payment due date is 25 days after the statement date.

16.5% / 365 days = 0.045%
so it means it charges 0.045% daily?
so when u draw $1000 monday, you pay $0.45 second day, $0.90 next day, $1.35 next day...right?

so 25 days mean 25x $0.45 = $11.25

I will need to pay $1011.25.. by the due date..am i right?

Anyone can comment on my calculation? issit correct?
Borrow $1000, pay back $1011.25 on due date?

 

[donchua]

I been holding my DBS Cash Line for more than 3 years but never use at all
and no need to pay any annual fees.
Everytime I called up to cancel when annual fees due, they said they will waive off
the fees..

 

[tsjcsl]

All the flyers asking you to buy this and that to fulfil your dreams will let you be happy for a while. Then you will realise that it is a nightmare rather than a dream.

If you use Credit Cards, use it only for convenience (and some people for the loyalty points). But be sure that you have sufficient cash to repay on due date.

For CashLine, use it only for cash flow management. But only if you are sure there is money coming in the near future to repay.

DON"T SPEND TOMORROW'S MONEY TODAY!!!:nono: :nono:

 

[Canew]

Advice : Try not to depend too much on credit. It tends to snowball because u start thinkin in terms of future earnings. I was once in such a bad state i had 4-5 credit cards and same no. of lines of credit. It was the worst mistake and lowest point of my life.

Credit cards a a useful and flexible tool for managing large payments. IF used sensibly, you can use it for decades without incurring a single cent of interest, late charge, annual fee etc. It is effectively a short-term, interest free loan, PLUS you can get certain nice little freebies on signing on or upon redemption of points.

However, they are a BRUTAL instrument to go into debt with. Only buy what you can afford to pay off immediately, and never never roll over credit on your credit cards. If you are the financially prudent type, and not given to overspending, then feel free to make full use of credit cards. In fact, you would be quite foolish not to.

Cheers
Best advices from fellow CS-ers. :thumbsup:

 

[yowch]

I don't even buy credit cards. I only use cards given to me free (for life, not only the first year). And before I buy anything with my credit card, I ensure that my Giro account has the cash to pay the CC company. you can say that I am not buying on credit, but paying my bills about 1 month late, and then enjoy some CC points, and I don't need to carry too much cash around town.

 

[LENS]

The interest is 16.5% p.a

16.5% / 365 days = 0.045%

so it means it charges 0.045% daily?

so 25 days mean 25x $0.45 = $11.25

I will need to pay $1011.25.. by the due date..is my calculation correct?
or they will have more hidden charge?

 

[reachme2003]

your calculation is correct, assuming that the loan amount is $1,000.00. hidden charges, if any, can be found in the terms and conditions.

The interest is 16.5% p.a

16.5% / 365 days = 0.045%

so it means it charges 0.045% daily?

so 25 days mean 25x $0.45 = $11.25

I will need to pay $1011.25.. by the due date..is my calculation correct?
or they will have more hidden charge?

 

[Chiang]

i pay more on or before the due date, especially new year round the corner, it makes me happy to noe that the bank owes me money hahahaha:bsmilie:

 

[LENS]

i pay more on or before the due date, especially new year round the corner, it makes me happy to noe that the bank owes me money hahahaha:bsmilie:

Ya, what will happen if we transfer more $ to credit card accout and cashline account?

 

[itisnottheendorg]

'some' banks (most particularly those Line of Credits/ Overdraft types) pay out interest on excess and above. but dun pin too much hope on that though.

1. MOST dun give you a cent interest for that extra $5k you left in that overdraft acct..HEY!..it IS an overdraft facility afterall.
2. those very few that do, give even fewer percentage, almost neglible if you care to read the fine print on a almost bare statement end of month..wish you had left that stash in a NORMAL saving acct instead, though AGAIN however close to barren that these days

credit cards/lines are simply interest-churners FOR banks ON their many pets..'consumers', NOT the other way round. the 'cash' is so 'readily' available that it felt just like cash in easy reach from your savings, which is precisely the impression the BANKER wants YOU to get and keep in mind. for everything else, they have their other pets...'lawyers'. (pls take no offence, as this is just a comedic generalisation)

the ONLY one thing i felt thats useful about them is that when you are indeed really incredibly extremely in dire need of some liquidity to tie over a cash flow crisis in the middle of nowhere or no time, the withdrawal card/cheque is the least likely to say NO in your pale face in the last very second.

Update: after posting this, i decided my this very last statement above is precisely the back alley runaway route a consumer THINK he's privileged to get away with time and again..WHEN actually all its creating a sustained reliance, putting him/her on a vicious cycle..bad news, bad advice.

then again, it will be the most pungent one by the time you see the cash withdrawn. think of it like the Devil, you win some, and he win MORE.:devil:

 

[espn]

Treat CC like a convenience, not a solution.

Use it only when there's obvious benefits, like UOB cards, lotsa dining discounts are major places. OCBC Robinsons @ John Little, Marks/Spencer, Robinsons cash rebate on monthly statement etc.

And of course not forgetting when you need to pay a large amount of money when travelling or for unexpected purchases, CC is really helpful. Like in Japan, wanted to go to universal studios, found that that the entrance fee will take up a bit of cash, I used card to pay instead. And when buying the JR rail pass, Y$14400 was quite a lot also, didn't want to pay by cash but to reserve the cash for daily usages, pay by card, and so on. You get the analogy.

Apart from that, whatever sh!t like prestidge credit, cashline etc are anothing but in disguise devils. I've got the prestidge credit but I've never used it, the cheque book's still fresh in it's shrink wrap in my drawer together with the member card.

I use the cards only when I'm certain I can gain benefits like discounts, etc. In fact I only apply for cards which I use often, for eg, like UOB (actually I got supplementary for that... so I didn't apply).

Even lately Maybank sent me a letter for plat... FOC this FOC that... but I just junked it... not much priviledges & benefits when used. No point just looking good. :nono:

My preferred cards are UOB, DBS and OCBC robinsons. I do shop often at Robinsons, so it's worthwhile, and UOB/DBS normally gives discounts at dining places. Apart from that... all the hoo-haa over CCs are nothing, really.

 

[LENS]

my initial thought is to gain advantage by using cashline..i thought it is like CC that u pay 0 if u pay on due date. But it seems like if u use $5000, u pay about $5055 when due date.. unless u can use this $5000 to generate more than $55...

Actually i just keep one credit card, mostly use it when traveling..

 

[popeye]

Ya, what will happen if we transfer more $ to credit card accout and cashline account?

Nothing will happen. You will end up having surplus balance, that's all which will be used to offset your next usage.

 

[rainman]

Use it when u have discount or cash rebates.... Other wise use ATM better

 

[auron]

most easier way to use credit card is to pay all outstanding bills every month before the due date.

you draw the X amount money out from credit card/cash line and generated Y amount of money from that X amount of money. If Y amount of money is more than the interest that you need to pay off, then that is the wisest way to use credit card/cash line.

unfortunately, not many ppl can do the above, so just stick to the easier way.