Stories about credit cards are mostly scary. Most people hear stories of paying expensive fees, getting drowned into huge debts, or having a hard time getting approvals. Worse, one of these stories may be from personal experience, swearing never to apply for a credit card again.
According to credit card experts, people are often discouraged to get credit cards because of these three reasons: the approval process, interest fees, and lack of financial discipline and knowledge.
The truth is that these stories we often hear are from beliefs that are somehow illogical. There is nothing really to be afraid of acquiring for a credit card-that is, as long as we use it wisely and responsible for paying the necessary fees.
Here are some of the reasons why we should not be scared in credit cards:
We will never get into debt as long as we know our paying responsibilities.
The credit card itself is not the one that causes us to have excess fees and even debt. It is always in the way we use it and how we pay for the necessary payables. If we know when and how should we use it, surely the credit card payments will be manageable for us. Also, if we pay our balances in the previous months, there are no finance charges to be paid for.
Our monthly spending is carefully monitored.
Tracking our credit card spending is easy. You can monitor your credit card balance and monthly transactions which ensures that you can never exceed the spending limit. With this, we have no reason to get surprised when our billing statement arrives.
Credit cardholders are also protected by the law.
In the Philippines for instance, there is the Philippine Credit Card Industry Regulation Law (Republic Act 10870) that protects credit cardholders in the country against inequitable collection practices. Among payment methods to choose, credit cards are much safer because there are government policies that cater to its users.
Credit cards are safer to use in online shopping and other online transactions.
Especially at this pandemic time, most of the establishments are closed. Most people are clinging into buying necessities online, and in these transactions, credit cards are more recommended to use. It is because it has security features that are intended for online deals.
Availing credit cards are more secure than debit cards.
Credit cards have the same convenience as debit cards. Both of them can be used online and even at some stores. However, there are higher risks. When hackers steal the information, the money stolen from the credit cards will be possibly recovered. Cards from the debit account will experience much inconvenience if it gets stolen. There is also a possibility of encountering unauthorized transactions from the debit card and the user will always be liable for it. In the case of credit cards, there is no loss of money here. And when it gets stolen, we just have to contact the bank to block it to prevent authorized usage.
