Okay, for starters, I really don’t want to get my own credit card because let’s face it, it’s basically creating a debt when you can (or cannot) already pay in cash. We have this mindset that having a credit card means the owner is well off and too rich to have cash on hand. Sometimes we even think that having credit card means no control over your shopping splurge. But all these stuff that I mentioned are all before I was managing my own finances. I have learned that it’s all in your discretion.
Those myths aren’t true. At least for me. I see credit card before as the root of all evil. As I had my first job and receiving decent payslip, I was still thinking that I won’t apply for a credit card. I don’t want to be in debt when I can pay for it in cash already. Also, I have my own debit card which functions the same as credit card. And I thought debit cards are way, way, better because it’s already your cash in process instead of the debt/loan type where you have to pay in the bank after the transaction. There also comes the interest part where your debts are getting bigger just by not paying on time. So what made me apply for a credit card even after all the negative stuff I just wrote?
Convenience of online transactions.** Most especially booking a plane ticket and hotel rooms. In a generation now where everyone wants to travel and budget airfare tickets are a hot steal, we have to be the fastest to act in terms of promo seat sales. As we all know, seat sales sold out faster. And while we’re fast in terms of booking, it is nothing when you do not have a mode of payment on hand. Sure, I do have debit card, but I only deposit there whenever I have to buy something that’s not time pressured. And I only deposit there the exact amount. So when booking a plane ticket that’s on sale, debit cards as payment won’t do the drill for me. For hotel bookings maybe yes, but if you’re really that serious on booking that sale airfare ticket, credit card is a must.
Over the counter payments for when I forgot to withdraw from my ATM.** Sure, I can use my atm as mode of payment too. But some establishment still don’t honor ATM cards as mode of payment.
Convenience of paying credit card bills online as well.** So how do I explain this? Long before, you can only pay your credit card through cash. And by physically going to the bank. This is time consuming and negates the purpose of cashless payment. So now when everything is done on smartphone, it’s more practical to pay your credit card bills by swiping on your phone instead of physically going to the bank. You can connect your ATM card that’s associated with your payslip so that whenever you have to pay, you just need to set up your mobile app to pay your credit card bills. This is doable provided that your payslip bank is the same as your credit card bank.
Rewards, rebates, and points.** It’s not necessary that you use your credit card often just to gain rewards or points for freebies. But at least something can come back to us no matter how little just by using it from time to time. It’s just a little added bonus. I personally chose the Cebu Pacific Get Go card of Unionbank to earn more getgo points faster.
Waivable annual fees.** Because annual fees aren’t cheap and it’s a good thing it can be waived when you prove that you’re using your card from time to time. It’s like using the bank’s services for free.
And lastly, for emergency purposes.** So this is the top deciding factor. As a traveller, I have come to conclusion that credit cards aren’t needed but is a must have whenever something wrong happens. We never know what might happen on the road so it’s better to be prepared when your cash doesn’t make it.
Ofcourse all of these won’t mean a thing when I am not a disciplined credit card holder. We all know the consequence of misused credit cards. There can a lot of temptations but it is still up to the card holder on how to handle such powerful card. :)
How about you? Why did you decided to get or not to get a credit card? :) Tell us in the comments below!
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