4 Ways To Make The Most Advantages Of Using Credit Cards In The Philippines

In the Philippines, when you hear the words “credit cards,” you also think of the word “utang.” 

Utang via credit cards created lots of ruined lives due to lack of proper self-control. However, if you are a responsible individual, then knowing these four advantages could help you make your life better.   

1. Help you organize your expenses

If you consider yourself a wise credit card user, then you can plan your budget much easier. These helpful features can make your budget more organized:

  • Since your transactions were automatically added to your Statement of Account, tracking your spending behavior will help you know where should you cut down on.
  • You can spread out the cost of a large purchase, such as a home appliance, over several monthly payments. This can be useful for emergencies where you might struggle to pay immediately for something you need.
  • You can buy a product or service but not pay for it until payday rolls around.

2. Make more value for every purchase

Most likely, your concerned relatives and friends warned you to use a credit card in case of emergencies only. But, you will not get the most benefits if you just use them when needed. 

Again, if you consider yourself responsible for handling finances, then you could get the most value for each peso you spent from swiping.

Here’s why:

  • Useful for everyday transactions like paying bills or grocery shopping because it helps you rack up points.
  • Redeem rewards like free flights, access to exclusive events, and cash backs.

3. Useful alternative to cash

Have you ever tried borrowing a credit card from a friend? Need to book a flight or buy online. Maybe, just short of cash. 

Here’s on why sometimes a credit card is more useful than cash: 

  • More useful when you’re traveling abroad and with no access to ATMs.
  • Having a lot of cash is not advisable. Once your hard-earned cash was lost or stolen, it would be difficult to get it back. Unlike in a credit card, you can simply call the bank to let it blocked. 

4. Gain better credit score to get loan approval

Besides the perks and rewards, you can also use credit cards to build you better credit score. 

In the future, you might need approval for bank loans to get your dream house or car or a need for capital to start your small business. A good credit score is crucial to get a loan.

To make your life better

Data from the Bangko Sentral ng Pilipinas (BSP) show that in 2016, there’s a P157 billion ($3.4 billion) credit card debt.

The recent credit card frauds were also alarming. With this kind of information, is it no wonder that this plastic money has been at the wrong end of criticism.

Of course, these benefits would only make sense if you always pay credit card bills on time. Another warning: paying only the “minimum” amount for a long time could cause you a financial disaster.

Also, please add cautions to protect your sensitive information against scammers

If used properly, credit cards can almost function like an interest-free loan. In the long run, using your credit card will help you live the lifestyle you deserve.

Source: Rappler

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