Benefits of using a credit card in Philippines

What is credit card

Credit card is a financial tool issued by the bank with a pre-approved credit limit that helps you to make purchases by financing, pay the merchants for goods and services.

The credit card information includes credit card number, cardholder’s name, expiration, and CVC code.

Why credit card is a powerful financial tool.

We will discuss what are the advantages of having a credit card and why it is a powerful financial tool.

Hassle-free purchasing

One of the benefit of having a credit card is you can do hassle-free shopping. You can just swipe for purchases without worrying the change, it can also served as payment for online shopping right in your house, and also you can make big purchases without bringing cash on your wallet.

Cashless payment

Credit cards is the best alternative payment next to cash. You don’t have to worry when bringing cash, simply bring your credit card and make purchases in merchants (let’s assume they accept credit card payments). The process on paying using credit is so simple just tap or swipe the credit card on merchant’s PoS terminal or online payment to make payments. You can also pay it for your utility bills like electric, water, internet, and etc.

Rewards, cash-back, and deals

It depends on the type of credit card but most of them have the perks like rewards, cashbacks, and also some deals or offers. It gives you some nice rewards like free items when checking in, or it might be a free food when paying using credit card. These perks are depends on your credit card issuer’s.

Improve credit score

Having a credit card gives you a credit history and you might use it when getting a loan for a car, a house, personal loan, and other big purchases.If you have a credit history means you are not invisible to the banks as they can pull the records and check your history. If you are good payor, that’s a big chance that you can loan and borrow money.


Installment or financing is one of the best perks of having a credit card is you can purchase items by installment.

A credit card installment is financing the merchants over time in a smaller monthly payments. Example when you will buy an item worth Php10,000 and you want to pay it in a span of 5-month installment. You can pay it monthly for Php2,000 in a span of 5-month, some offers/deals give you a nice perk like 0% interest.

Emergency purchases

Incase that you don’t have a cash to make payments, you can use your credit card to pay like medical bills, goods, or services. Using a credit card can help you in times of these and pay it later at the end of the statement date. Keep in the mind that not paying in full at the end of statement date can hurt your credit history in a long run.

Keep track of your payments

The statement of your purchases where send directly to your e-mail. You can clearly see the history of your payments and you can adjust it accordingly. If you see that you might overspend, you can adjust your spending by cutting your expenses.

Credit card is a powerful financial tool with a lot of advantages, of course there are also disadvantages.

If you own credit card, HAPPY SPENDING!. Of course use it responsibly.
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