“Do I need a Credit Card?”

16 Sep
CIMB Petronas MasterCard Gold Credit Card

Image by liewcf via Flickr

Part 1 of Credit Cards: Pinas Edition

Do you really need a credit card? Before you even think of getting one, try answering the following questions first:

  1. Are you an impulsive buyer? Do you often buy something you don’t really need?
  2. Have you missed payments for or have ran away from a debt?
  3. Do you spend more than you earn?

If you answered yes to any of the questions above, chances are, you’ll have a hard time managing a credit card and I suggest you stay away from them. Maintaining a credit card is a responsibility. You must have control over your finances and buying urges if you are to get one.

Credit card companies actually want you to overspend! Because overspending means you can’t pay your current balances in full forcing you to revolve or pay only the minimum. Revolving earns you interest and interest is profit for the credit card company. Worse is missing a payment entirely. Not only will you still earn interest, you also get charges for doing so.

But, there’s also the positive side of having a credit card.

  1. Convenience. Imagine not having to bring cash with you. Not to mention credit cards are accepted globally.
  2. Bonuses and Perks. Usage of credit cards often earns you points and miles. Perks like discounts are also good.
  3. Identification. Credit cards are also a form of identification on some establishments like hotels.
  4. and more…

In my next article, we’ll talk about how and where to get a credit card.


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