Creative use of credit for those with little cash

[ladislav]

Can we discuss here how we used credit cards/loans and other ways of financing creatively to finance our oversea ventures? I personally firmly believe that credit cards if used properly can help us to finance out life in other countries. Any experience /advice/ ideas?

I personally am grateful that there are credit cards. I was in Thailand and got cheated there. Because I had a credit card I was able to charge my ticket out and get out of dodge. I firmly believe that you need credit and it is a "muscle" and an additional tool to making your plans come to fruition provided you use it wisely. I am against using credit for profligate purposes but instead as a leverage. Credit is also good if you combine it with tax free high overseas salaries as opposed to highly taxed and relatively low US wages.

Anybody here with ideas? Tips?

[ultraviolet]

A few things I do with my credit card:

1. My #1 credit card (an Amex Gold Card) gives me 2% cash back with no annual fee. So buying things with this card is like getting a 2% discount. See if you can find a cash-back credit card.

2. My #1 and #2 (a Mastercard Platinum, 1% cash back, no annual fee) credit cards have consumer purchase protection so that if you get defrauded, it's covered. Also your warranty is doubled up to 1 year. Make sure your credit card has fraud protection and extended warranty.

3. Pay your credit card off at the end of each month, do not carry a balance.

4. I once traveled to Europe and didn't bring much money (less than 100 Euros), most everything I put on my credit card, no problems at all.

5. If you need actual cash you can go to most ATM machines in the world and with your credit card, get a cash advance. Note that cash advances are treated differently (I think they automatically charge interest) so only take a small amount out for some petty cash and try to make your purchases with the credit card itself if you need it.

[globetrotter]

If you have the money to pay off your cc's in full at the end of the month, then why use the cc's at all?

Just use your cash, ATM or debit and save the cc's, as ladislav did, for emergencies.

[ultraviolet]

If you have the money to pay off your cc's in full at the end of the month, then why use the cc's at all?

Just use your cash, ATM or debit and save the cc's, as ladislav did, for emergencies.

For me, if I was in that situation, I can think of 3 reasons off the top of my head:

1. As said, my #1 card gives me 2% cash back. That's like getting a 2% discount on everything.

2. Fraud protection and extended warranty.

3. If you put everything (or most of everything) on your credit card, you have a paper trail of your spending, so you know how your money was spent and where.

[Maykel]

I agree that Credit Cards are really helpful especially if you are out of the country, and out of cash. You can use them to purchase different things you need without hassles. But still, be very heedful in using them because their information are very indispensable in redeeming unwanted transactions.

[Winston]

Another advantage of credit cards is that you can dispute charges if you get ripped off. But you can't do that if you used cash. Using them overseas will cost a 3 percent fee though.