Credit card: two words the mention of which turn many into full-blown cynics.

While it is undeniable that anyone who has a credit card risks running up too much debt -- a millstone that might take several years and lots of sacrifice to get rid off -- if used wisely the benefits can outweigh the downsides.

I have a credit card of a foreign commercial bank that I treat as a sort of debit card -- but with benefits.

For all transactions that can be made with plastic money, I use my credit card, and in so doing, I am accruing loyalty points, thick and fast. The points later come in handy when the time comes to pay the annual fee for the credit card.

I have been using the card for almost five years now and not once did I pay the annual fee with hard cash: I simply relinquished a certain portion of my loyalty points to the bank.

All major credit card issuing banks like Standard Chartered, City, Eastern, Brac, United Commercial and Mutual Trust now offer this facility.

The benefit of using the credit card for all my expenses as opposed to a combination of cash, debit and credit cards is that at the end of the month I know exactly how much I have spent and can calibrate my spending pattern accordingly.

Not least, I am also building credit, which is important to qualify for loans for major purchases like a car or home.

The neat feature comes to use if one wants to purchase an expensive electrical appliance or furniture.

With the credit card the items can be purchased on equal monthly instalments, meaning instead of dropping a huge sum in one-go to acquire the product its cost can be spread over a six-, 12-, 24- or even 36-month period.

There would be no additional interest rate for taking up the facility, so the purchase ends up being not too taxing on one's pocket.  

Most banks now tag 10-15 percent discounts with their VISA/MasterCard at selected eating joints and lifestyle stores, 5-7 percent cash back on grocery spend, and free nights and dining discounts at luxury hotels and resorts around the country -- all of which are always welcome.

During Ramadan time, almost all banks' premium credit cards are eligible for 'Buy 1 Get 1 Free' offer for iftar and suhoor buffets at upscale restaurants. Some banks like City, Standard Chartered, Brac and EBL extend this offer all year round.

But to me, personally, the biggest advantage of possessing a credit card is felt when making a trip abroad.

Thanks to the Bangladesh Bank's tripling of the limit for international online purchases with a credit card to $300 per transaction last year, planning for a foreign trip has become exponentially convenient.

Not only can one take advantage of the deals for hotels and air tickets but also buy entry permits to tourist attractions beforehand, doing away with the hassle of queuing up for hours at end sometimes.

The credit card also comes in handy when it comes to getting by in a foreign city: one can call an Uber ride from one's mobile and the fare for the trip would be deducted from the credit card.

Most of the banks' credit cards allow access to airport lounges at the Hazrat Shahjalal International Airport, a perk that ensures a good start to the trip.

At the lounge, one can settle down to feast on a delectable buffet spread, use the WiFi and freshen up, making the wait for the flight invariably pleasant.

The more high-end credit cards like Standard Chartered's Titanium and Signature, City Bank's Visa Gold and American Express cards, UCBL's Platinum, National Bank's Gold offer passenger handling service during departure and arrival at Hazrat Shahjalal International Airport.

Not only that, the high-end cards also give access to over 1,000 airport lounges around the world.

While abroad, the option of having another payment source by way of a credit card is of always of great help in case of unforeseen emergencies or purchases.

Back at home, all year round, I can buy subscription to acclaimed foreign publications like New York Times, Washington Post, Financial Times, New Yorker and so on, as well as books from Amazon and mobile apps from Google's Play Store -- a wonderful sweetener for owning a credit card.

All very well, but a credit card, essentially, means one purchases goods and services in credit to the bank, so the bill has to be cleared -- preferably in full every month, without fail. Otherwise, it negatively impacts one's credit score.

Failing to clear the full bill amount means one gets charged a late fee ranging from Tk 300-1,000 along with high-interest on the outstanding balance, an unnecessary outlay that must be avoided as much as possible.

Many banks' marketing brochure states that the credit card purchases come with a 45-day interest free window, but in reality, it rarely works like that.

Typically, banks give a 14-day window between the statement date and payment due date. Now if one makes a purchase with the credit card a day before the bill is generated, he/she actually gets a 15-day interest-free period and not 45 days.

The 45-day interest-free period can only be availed if the purchase is made on the day the monthly bill is generated or the day after.

To ensure I never miss a payment, I have set up a direct debit with my bank account such that my entire credit card bill is taken from my account every month automatically.

If setting up a direct debit seems too daunting, one can simply set a monthly reminder on one's mobile phone to pay the credit card bill.

At the end of the day, a credit card means using the bank's money and one should be mindful of this fact at all times.

One diktat that helps me keep my credit card usage in check is: if you cannot pay it upfront with the debit card or cash, you cannot afford to charge it on the credit card either.