How Credit Cards Can Be Used for Financial Independence

Credit cards can be used as a tool for financial independence if used properly. However, if used improperly, a credit card can lead to financial burden especially if the credit card debt is not settled on time, so it’s good to pick the best credit card based on your ability to pay your obligations.

Having financial independence means not having to worry about the ability to pay bills or having the means to pay for new experiences. One of the first steps to attaining financial independence is realizing that the luxury of a large income does not always mean that you will be financially independent. Indeed, you could take home a huge pay check every month but if your spending exceeds your pay check, you’re not financially independent. In fact, you’re already in debt if that’s the case. A credit card will not do you any good in this situation then, and you need to find a way to cut your expenses or earn more income. You just learned the lesson of the maxim “live within your means” the hard way.

But if you earn enough money from your job and your expenses are well below your income, then you might want to consider diversifying your source of income. Yes, your job is one source of income but that’s just one of them, and there’s always the risk of losing that job or being disabled and that doesn’t make you financially independent.

If you have extra funds then you could consider investing that in the stock market or in starting your own business. This is one situation where having a credit card could come in handy. Having a credit card is one of your options for funding your own business. Many suppliers accept credit cards so you could use your card to pay the supplies that your new business needs. It can also help you take care of some of the costs related to starting a business like getting the permits for the business and some of the equipment that you’ll need for operating your venture.

We’ve already mentioned that being wealthy means having more income than expenses. How could a credit card cut expenses? Well, if you plan to get a house in the future or another big ticket item like a car for example, you could save a lot if you have a good credit history. This shows your lender that you have a good record of paying your debts so that they could give you a lower interest rate on your loan. Having a credit card helps you build a credit history so your task is to diligently pay for your credit card bills every month in order to build a good credit history. You also get to save on penalties if you pay your credit card bills on time so that’s another expense that you don’t have to worry about.

There are other ways to achieve financial independence but the key is to having more income than expenses. A credit card can be used to increase income (by helping fund your startup) or for avoiding expenses (like higher loan interests by helping you build a credit history that will unlock lower interest rates for big ticket items like home loans and car loans).

About the author:
This is a guest blog contribution by Michael Vincent in behalf of Compare Hero, Malaysia’s leading credit card comparison website. Compare a broad range of financial products – from credit cards to broadband plans for free, right in your browser.

How to prevent your Credit Card details from being stolen

Sometime ago, I had a post and video about electronic pickpocketing in which your credit card details can be stolen without you even realising it.

Fortunately, there are now rfid blocking wallets in the market. Also available are rfid sleeves for passports and such, and badge-holders to prevent electronic pickpocketing, identity theft and payment fraud.

What these rfid security products do is that they block the personal information being broadcast by radio waves from your credit or debit cards, passports and other ID cards. Not sure if these RFID blocking products are available here but they sure are online.

Best credit card deals from Credit Card Applications

It is easy to apply for a credit card in the US. Unlike here, one can apply for a credit card online. This site, Credit Card Applications, has a very wide selection of best credit card deals, one that will suit any credit need.

To help the applicant narrow down the search, you can indicate the user you are whether you are a general consumer, a small business owner (yes, they do have business credit cards), whether you are a student or one with a credit challenge. You can further fine-tune your search by checking off the kind of features and benefits you are looking for. For example, you may want a card that gives you frequent flyer miles or cash back or even annual fee waiver. You can just check off your requirement and a list of credit cards will be located for your consideration. Below is what I mean.

I think you can find the best credit cards here. Get a Citibank credit card or a Capital One or any one from reputable card issuers here on the site. These are the cards and companies that come highly recommended by top businesses and credit review organizations.

CIMB Smart Rewards Fiesta 2010... Oct 1 to 3, MidValley MegaMall

The CIMB SMART REWARDS FIESTA is back. It will be this weekend, from Oct 1 to 3 at the Mid Valley Megamall Exhibition Center from 10am to 8pm.

If you are a CIMB credit card member, here's where you can redeem your Bonus points and enjoy incredible discounts on promotional items. It also saves you having to go through their card redemption catalog online tediously scrolling through pages and pages of products for different price ranges.

However, if you are out-of-town or prefer to go online, their Rewards Redemption website does come in handy. Here's the URL: https://www.cimbbank.com.my/import/catalog/search.php

How to Increase Sales

Cash is king, no doubt, but these days, without a credit card or debit card you are not able to shop online. Likewise, if you are running a business and not accepting credit card purchases, you are losing out to your competitors who are accepting credit card purchases.

Gone are the days when it was a hassle installing credit card processing but not now. You can even apply for it online. Don't lose out to your competitors or leave money on the table, apply for credit card processing. It will increase your customer base and you can expect your sales to increase by an astounding 50 to 400%!

Need another Credit Card?

Debts, the bane of the economy and who is to blame? Let us just cover debts on a personal level. I am no expert but it is not difficult to tell that personal debts are caused by excessive spending especially spending from borrowed money. Credit cards come to mind. Buying with a credit card is actually spending from borrowed money.

There are people who are simply collectors of credit cards. When you think of it, it makes sense to have more than one what with every card having its own merits and features. In this respect, I would say credit cards are a help, wouldn't you? Of course, a good measure of discipline is in order to prevent over-spending.

If you would like to apply for a credit card, you may want to check out Credit Card Applications website. They sure have a wide range of credit cards available. For people with good credit, they have cards with low interest rates or cards that offer rewards such as frequent flyer miles. This would be great for people who travel frequently either for work or pleasure. For people with bad credit, they have cards that offer a way to rebuild their credit history. Pay them a visit, you may find what you need.