Avoid credit card as soon as you know it is only a liability on your part. Credit cards are only useful for emergency purposes. As long as you can,you should avoid credit cards because it is trap to debt. No wonder there are many people who have a huge debt because they don’t know how to use credit card wisely.
Many people on the other side get rich because they avoid credit card or they are not using credit cards at all. The idea is simple, if you want to get rich, you should buy more assets or anything that can generate money for you. Do credit cards help you make money or help you go into debt?
Just ask yourself, “I have a credit card, now what?” I know some people who are using credit cards just to make impressions to other people.
Avoid Credit Card if You’re Using it to Impress People
They go to shopping mall, they buy the things they want and when they go to the cashier to pay the items, they pull out their credit card and boom…another credit! Who makes money? First the store,then, the credit card company and the credit card holder lose money especially if the items he bought are through installment basis.
In the following paragraph, I will give you an example on how can you take advantage of credit cards to make money.Always remember that, anytime you use your credit card,the store where you used your credit cards and the company that issued you a credit card are making money. So be wise! Make money while you are using your credit card! Use credit card to leverage money.
Don’t Avoid Credit Card if You Can Use it for Leveraging
Now,just figure this out. Imagine you will use your credit card in buying items for your “buy and sell business”. Assuming you buy an iPhone 7 worth $500 using your credit card for wholesale price. You bought 3 iPhones that cost you $1,500 and you decide to pay in 12 months installment basis. You sell each iPhone 7 at $600, after few weeks, all iPhone 7 are sold. You make a total gross sales of $1,800 or a profit of $300. You pay all your credit card debts and the credit card company is very happy. Since the credit card company knew that you’re a good client because you pay on time, they decide to increase your credit card limits. Now, you can’t only buy 3 iPhones using your credit cards. You can buy 6 and you make a total profit of $600 for those items without using your own money.
Did you get the idea? The idea is to avoid credit card if it is only a liability to you. If the credit card you are using now are generating money for you, then that’s a sign you are using your credit card in a smart way.
Make use of leverage. Use other people’s money to make money. In this case, you are using your credit card to make money. If you want more credit card tips, stay tuned to Daily Investing Tips! Like and share this page with your friends and to other people you think they are abusing or misusing their credit cards. Help other people not to get trap to credit card debts.