Sometimes, I hear people saying that they want to cut their credit card and be debt free. I feel it hilarious because your credit card doesn’t trap you into debt, your spending patterns do. Credit is like a knife in the kitchen, it is essential to your daily living, though it may hurt you occasionally.
Personally, I take my credit line very seriously. That is why when a bank refused to increase my credit limit, I want to know why. In fact, one of the biggest credit mistakes one can make is to cut all your credit cards, because it can be a vital helpline when you need cash in an emergency.
For example, last December, I missed my flight from Taiwan back to Singapore, and I must fork out $2,500 at the airport to reschedule the ticket and pay for my accommodation. It was the piece of plastic ......