I am one of those who does not like to use credit cards. Well, that was before. I think I was just too afraid to own one because I do not want to be like the many credit card users who ended up in so much debt, most of them were unable to recover from it. It is also because I cannot provide the requirements to getting one.
That was the negative part of using a credit card that I hear most of the time. On the flip side, I have a friend who is slowly teaching me about financial literacy, and even though that word is still a big puzzle to be solved for me, I can say that I am slowly connecting the pieces. Now, this friend has taught me the advantages of having a credit card. Aside from her, I also read from Michelle of Michi Photostory, Maye of Momaye’s Diary , other financial website several reasons why they find using credit cards more convenient.
I guess the only golden rule when it comes to credit cards is BEING RESPONSIBLE.
Now, on to my secured credit card. Why did I change my mind and applied for a secured credit card?
1. Because it’s “secured” credit card
I opened up a savings account in order to apply for a secured credit card. My initial deposit was PHP 10,000 only. Since it’s “secured” credit card, the hold-out amount was 10% and the remaining balance became my credit limit. So hindi naman kalakihan tong pinag-uusapan natin, haha. My credit limit is just PHP 9,000. haha. If you want to increase the credit limit, increase your collateral. So I see it a savings card too. Side story: the money I used to apply for this was my hard-earned income from blogging! yaaay! Which is why I was more excited for this card. Lol!
2. Help during emergencies
Now, I know we all have our own version of emergencies, lol! To some, makeup sale can be an emergency, to some, the shoe sale, to others, that dress on sale. I’m not going to be a hypocrite here and pretend that I will never be lured by those things. So I’m gonna say I’m really going to be tested because of this credit card. However, the main purpose is to have something to use for emergencies that are health-related or any unforeseen circumstances that involve life and death (life and death talaga e, no? haha. But it’s true, I hope I can use this for the good).
3. To build a good credit history
I may not need a good credit history for now but who knows I might in the future – I can’t tell. So I want to be able to start establishing a good credit record now so that when I need it, there won’t be a problem. And the last time I checked, a credit card is the most recommended method to kickstart a good credit history journey.
We all know with a credit card, you can do so many transactions, you can pay a grocery without needing to look for an ATM, you can pay a bill without any hassle and much more. Many credit card users find convenience in using it.
My friend told me credit cards have so many “pakulo” she said she’s availed of so many freebies already just because of using her card. You can’t get any of that for using cash payments.
I am a new credit card user so I can’t say so many things for now. So far, these are the main reasons why I decided to get one. Maybe in the next few months (or years), I can share my experience for using a credit card. I hope it will be a good experience! We will see. 🙂