Why Should You Own a Credit Card?

Before getting your own credit card, you should first understand that in order for your credit card to be worth it, you need to be as responsible as you can with it.

Although credit cards can enable people to buy many things at once, you will still have to pay for them. When you’re not able to pay your balance on time, then you’ll be facing a load of problems.

As long as you’re able to control yourself and stick to just using around 30% of your credit limit, then you’ll do well in maximizing it! Here are a few reasons why you should own a credit card in the Philippines.

Sign Up Bonuses

Most credit cards award you from the moment that you sign up for them. Often, you’ll be awarded with things such as reward points or airline miles as soon as you sign up. You might also be showered by a number of discounts for the first month or so, when you use the card.

Basically, sign up bonuses are there to entice people who are still just considering getting a credit card even more through being generous with these reward points, airline miles, and discounts they’ll get just by simply applying for a card.

Cashback

The concept of cashback has been in the works for a long time. It’s also one of the many techniques that has helped a number of different kinds of credit cards make their mark in the industry.

The idea was pretty basic, but was definitely enough to get people to use it: when you use a credit card, you’ll get a small percentage (around 1 to 5% depending on the bank) refunded, regardless of whatever you bought or where you bought it.

Getting even just a small percentage back from a purchase might not look like much, but in reality, it can pile up pretty quickly.

Rewards and Points

It’s easy to collect credit card points in the Philippines. Often, credit cards would provide you with a peso-to-points ratio that shows how much points you can get for certain purchases.

These credit card points can then be used as a way to pay for a few other things that the bank offers. These are classified as rewards.

The points you collect can be used to get merchandise, converted into cash or to select airline miles.

Most of the time, credit card companies would have promos where you can get double or triple the amount of points for a long time. This encourages cardholders to spend on specific categories such as restaurants, transportation, or even hotel stays. You can check out our page dedicated to sharing these promos and deals here!

When you have already collected a good amount of points, you can then redeem these points for things such as gifts cards or buy items straight from the company’s rewards catalog.

You should be well aware of what rewards you can redeem with your credit card. This is because the options are almost endless depending on the connections that your card has.

Some credit cards offer better rewards for people with particular spending patterns. If you know exactly what you spend a lot on, it might be worth looking for a card that will encourage continued patronage for these things.

Frequent Flyer Miles

Often coinciding with points, frequent flyer miles are another type of currency that you can collect whilst purchasing different products. Instead of buying items, however, frequent flyer miles can be used to help fund your next flight, or even better, make it completely free.

With the right understanding on how you can get frequent flyer miles through your credit card, you can end up not paying for every flight that you take.

Most of the time, credit cards would already have a peso-to-point-to-mile ratio with their affiliated airline. Some credit cards specialize on just one frequent flyer program while others let cardholders transfer miles to a variety of airlines.

For example, PNB-PAL Mabuhay Miles World Mastercard is one of the best credit cards you can use to rack up points for Mabuhay Miles, while the Citi Premier Miles Card lets you use the airline miles you collect in over 60 airlines.

Now you can get frequent flyer miles through your credit card, you can end up not paying for every flight that you take.

Most of the time, credit cards would already have a peso-to-point-to-mile ratio with their affiliated airline. Some credit cards specialize on just one frequent flyer program while others let cardholders transfer miles to a variety of airlines.

For example, PNB-PAL Mabuhay Miles World Mastercard is one of the best credit cards you can use to rack up points for Mabuhay Miles, while the Citi Premier Miles Card lets you use the airline miles you collect in over 60 airlines.

Safety

This point is prominent particularly when comparing credit cards and debit cards.

Basically, when your debit card is used by a thief, your money will be missing instantly.

It will also be a great hassle when suddenly some of your expenses or mailed checks start to bounce because of insufficient funds. This can also affect your credit score in the long run.

When your credit card is used fraudulently, you won’t be the one losing money. The only thing that you should do is to notify your credit card company of the fraud and you won’t need to pay for the transactions whatsoever. It’s the credit card company that should resolve the matter internally.

Grace Periods

With credit cards, you have some leeway before you have to pay your balance for the month.

After you make a big purchase, you don’t necessarily need to pay it right away.

Keep in mind that most credit cards give you at least until the end of the month to pay what you owe them.

This grace period might be underestimated by some, but it actually helps in even the littlest way possible.

It gives you time to wait for your payday that’s usually at the end of the month. For the more financially savvy people, you can earn a bit more thanks to bank interests and investments.

Universal Acceptance

Credit cards are accepted almost everywhere you go. This makes it easier for you to purchase items while in a foreign country. Aside from that, there are also some industries that prefer credit cards to debit cards.

Often, you’ll have an easier time with booking hotel stays, renting a car, etc. when using a credit card.

Building Up Credit

For people who have gotten their first credit card, or those who want to improve their credit score, using a credit card responsibly is the best thing that they can do. An individual who uses their credit card responsibly will help in this improvement especially if it becomes consistent.

Credit card companies will report your payment activity to credit bureaus and slowly improve your credit standing, opening up more opportunities for you such as increasing your credit limit or making you eligible for other, better credit cards.

You can summarize why you should own a credit card in once sentence:

“More financial options with proper usage.”

It’s important to emphasize the responsible use of credit cards as it will always have the potential to bring you debt. However, if you are disciplined enough, you will only reap the benefits of owning a credit card in the Philippines.

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