Financial Blog

A credit card is a great financial tool that can benefit you in many ways if you use it to your advantage. Yes, there are risks to owning a credit card, especially if you have bad spending habits. But if you use it responsibly, the benefits far outweigh the risks.

With the rise of online transactions nowadays, getting a credit card can make your life much easier—from the convenience it brings up to the promos and rewards you can get.

However, you might ask: Is getting a credit card for me? Well, it really depends. To see if you’re fit to get a credit card, we prepared a checklist for you:

A credit card may not be for you if:

• You have bad spending habits (Spending more than you can afford)
• You can’t pay your balance full and on time
• You’re only for it to keep in trend

Meanwhile, a credit card can greatly benefit you if:

• You’re disciplined in paying your credit card bills full and on time
• You’re responsible with your spending
• You’re in it for the convenience and other benefits

So what are the benefits you can get from owning a credit card and why you should get one? Well, there are 7 reasons we think of. We’ll discuss it one by one below.

1. Convenience

The most important reason for getting a credit card is convenience. Having a huge amount of cash with you is such a hassle and risky. It can be stolen easily and once the cash is gone, it’s gone forever.

Also, unlike debit card transactions, credit card transactions can be refunded easily because it’s not tied to a bank account. A credit card transaction will only reflect when you already received the product/service you availed.

With the threat of COVID-19 still present, people are leaning more on cashless and online transactions. Having a credit card as your main mode of payment is helpful not just for convenience but for your safety as well.

2. Online transactions

As stated above, people are leaning more on cashless and online transactions. Thus, you can use your credit card mainly for online transactions such as bills payment and online shopping. You can use it for, but not limited to:

Bills Payment

• Globe
• Smart
• Converge
• PLDT
• Meralco
• Maynilad

Subscriptions

• Netflix
• Spotify

Online Shopping

• Lazada
• Shopee
• Steam
• Nintendo E-Shop
• Google Play Store
• App Store

Just keep in mind to buy only on trusted websites/apps with secure payment methods. Credit card transactions are still prone to fraud—as with any other payment method.

3. Promos and rewards

Using your credit card regularly accumulates points which in turn, you can exchange for freebies and rewards. Depending on your credit card provider, there are many promos you can avail of when you use it. This can be anything from cash back to travel points good for free airline tickets.

4. Emergency purposes

Let’s face it, saving money is hard right now. In this case, having no cash for emergency purposes isn’t embarrassing—it’s a sad reality for most people right now. But, having a credit card acts as your lifeline when it comes to emergency purchases such as groceries and bills payment. This provides an instant payment for unexpected and important expenses.

5. More secure than debit cards

Credit cards are safer than debit cards because it helps you avoid losses from fraud. Compared to a debit card that is tied to your bank account (in which you will incur losses instantly whenever a fraudulent transaction arises), a purchase made using a credit card only reflects on your account when the product or service you have availed is already with you.

However, you still need to be responsible as a credit cardholder in spotting credit card scams especially online. Contact your credit card provider ASAP in case of card damage, loss, or theft.

Read here on how to spot phishing and spoofing.

6. Builds good credit history

The most common myth when it comes to getting a credit card is it’ll hurt your credit score. This is only true when you’re not paying your bills or spending irresponsibly. However, if you’re the complete opposite of this (pays credit card bills on time and is responsible), then you’ll have a good credit history. This will also help you when getting a loan in the future such as when buying a car or getting a house.

7. Tracks your purchases

Every month, you will be given a complete and detailed summary of your spending. Your credit card provider tracks your purchases and this is useful because you’ll know how much you spend. By knowing the history of your purchases, you can adjust your saving and spending strategies.

Getting a credit card offers a lot of benefits for those who use them to their advantage. Keep in mind to be disciplined in paying off your credit card balance each month and stay responsible with your expenses.