Do you using credit card?

Advantages

• you using “the banks money” – big advantage, especially for the business which growing fast to help own cash flow
  
• 1-2% money back, fly miles, points,… – excellent especially for business if you buying for some other ones (assisted shopping,…), or you paying expenses which you must pay in any way (fuel, computers, office equipment…). There are many good credit card, which returning more (5 – 10%) for the fuel, food, office equipment. Good is too, that you clam your point if you buy over the Internet – you must pay for hosting and domains in any way…

Disadvantages

• high interest rate – it’s so high, that some banks using to fool you the MONTH interest rate. They wrote “Only 2% per month”, but its 1.02^12 = 26,8% per year!!! Do NOT count is as 2*12!!! Big disadvantage! If you need a loan do NOT, again DO NOT use credit card, use some standard loan with normal 8 – 12% interest rate!
  
• year fee - if you don’t fulfill requirements
• high penalties for everything – overdraw, later payment, … – which may destroy you, if you are little lazy or slovenly person

Catch

• you forget to pay once in the grace free period and they have you! You are doomed and paying high interest rate for next year!
• they sending statements too late, so is easy to forget or don’t manage to pay in time! They wanna force you to pass the grace free period and to fall into high interest rate!

Secrets

• Money back are not free – you think that you will “save” 2% if you have a money-back. You will NOT. It’s NOT a bank money! In reality the shop giving to the bank 3-4% of his income! Example, if you buy something for a 100€, the bank pay to shop only 97€! So fact is, that the shop must increase the price by the 3-4% (on the Internet 3-10%). So you paying MORE! If you have 2% cash back, you are still 1% in minus, because shop rise the price by the 3%!
• Bad exchange rate – If you buying something on the Internet or in foreign countries in different currency, most banks will add 1.8-2.5% up the exchange rate. The biggest bastards ordered VISA/ECMC to add other 2% more, so the bank get 3% from the shop plus 2 – 4.5% by the exchange rate = 5 – 7.5%!!! Isn’t it nice? You get your 1% money back, and they got other 6.5%!!!
• Psychology 1 – debt is heavy - Each debt is a big steal ball on a chain, it will hold you back. You wil think about it everyday and it will hurt you. You may not decide in any minute to go to the other side of the Earth, you must simply pay your debts…
• Psychology 2 – paying via cards not pain – Do you wanna know, why every shop accepting cards? They must pay to banks, so why they doing it? It’s because when you paying via coins and banknotes it HURT you, so you controlling your expenses. But if you paying via debit card you spending psychologically NOT your money, but some “freaky” numbers in the bank and you buying MORE, you have lover barrier to buy expensive good. And with credit card you internally think,  that you spending “banks” money, this barrier is almost zero! This is proved by serious researchs, trust it! It’s in your subconscious mind, you can’t change it! You may only decide to have or not to have credit card!