Over the years, credit card has been "demonized" in various media outlets. You'll hear about high interest rates and penalty fee you have to pay in case you either missed a payment or unable to pay in full. There are horror stories about collection agents threatening the credit cardholders of jail time because of unpaid financial obligations. Plus, there are tons of stories from people who are swimming in debt because of credit card.
In other words, credit card has been living under the bad light. After all, you don't want to be Rebecca Bloomwood who has to lose her credibility in national TV and sell her clothes just to pay for credit card expenses.
The truth is credit card is not all that bad, especially if you know how to use it wisely. In fact, there are benefis to is, which includes:
1. Safer to carry around, especially during travelling.
Can you imagine bringing cold cash when going out of the country? Sure, you don't get to earn interest and possible payment of penalty fee in case of late payment, but travelling with cash, regardless of where you are going, poses security risks. There could be customs concerns especially when you go abroad and carry huge amount. You have to worry about converting your money as well when you need to buy something.
The good thing about using credit card when travelling is that some credit card companies offer bonus points or travel insurance especially when used overseas. In case you ran out of cash, credit card is there to save you.
2. It is universally-accepted.
You don't need to find for a money changer to pay for your food and goods, especially when you are in a different country. All you need is just one swipe and you're good to go.
There are several payment networks accepted around the world. Make sure your card is Mastercard, Visa, or American Express so you can use it anywhere you go.
3. Owning a credit card comes with additional benefits.
The benefits vary per credit card companies but generally, there are perks attached to owning a credit card.
For starters, you get to earn reward points. This means for every spending, say P50, you get to earn one reward point, which you can use according to your liking. You can get new appliance or even waive annual fee.
Aside from the rewards point, some credit card companies also offer Purchase Protection program, which you can take advantage of in case you decide to return items.
Still, this is not enough reason to get a credit card and abuse it. if you need cash for a specific occasion, then we suggest you consider online cash loan similar to what we offer at Loan Ranger. We can extend credit up to P10,000 and payable within 30 days. Unlike credit card companies, we don't require you to submit tons of documents just to get approved.
In case you are worried about the interest rate, don't be. You can check out this post for a comparison of prices from various online cash lenders in the Philippines to see how we fare from the rest.