Posted on: 18-06-06 11:23:47
I have got two opinions from two different persons regarding use of credit cards in Canada.
1. Use credit card as much as possible, even for a small purchase, so that you can build your credit history and can increase your limit slowly.
2. Don't use your credit card ( not more than once in a month and that to for small amount), so that, banks will be after you to increase the credit limit on card, as they will think that you are not in need of money.
Which is correct opinion? Any input from desi friends of Canada out of their experience.
You must use your credit card, as much as possible to build your credit history. Ofcourse you have to pay atleast minimum payment on time to build credit history.
If you don't use your card, then no bank will be after you (Bank make money if you use your credit card)
Quote:
Originally posted by tinku
I have got two opinions from two different persons regarding use of credit cards in Canada.
1. Use credit card as much as possible, even for a small purchase, so that you can build your credit history and can increase your limit slowly.
2. Don't use your credit card ( not more than once in a month and that to for small amount), so that, banks will be after you to increase the credit limit on card, as they will think that you are not in need of money.
Which is correct opinion? Any input from desi friends of Canada out of their experience.
I use my credit card for a small purchase, as small as $2 if it is accepted and as big as my credit limit available. My reasons are, First, I am too lazy to take out cash from bank. Second, it is safer than carrying cash from fear of lost. Third, intract use is charged about $0.6 /transaction after couple of transaction and I dont want to block money in chequing account for unlimited intract transactions. Fourth, it is easier for me to compile my expense appearing at one place rather than multiple accounts. This is my thinking.
Hidden agenda. I know where my wife is spending money with joint card.
What difference will a credit limit of $1000 over $5000 will effect you. They charge heavy weight interest on credit cards. And if you are going to pay it within 30 days, I will not worry about it at all.
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My question is , If I pay my credit card bills on time every month, still banks make money?
Thanks in advance for the reply please.
Ben
Yes, bank still make money. Bank (& Visa/Mastercard) get some % with each & every transaction. Banks like people (make most money) who use their credit card a lot, pay minimum balance on time and carry remaining balance.
Quote:
Originally posted by benparsad
My question is , If I pay my credit card bills on time every month, still banks make money?
Thanks in advance for the reply please.
Ben
