August 29, 2014

Use Credit Card Wisely

The first time I had a credit card was in 1999. I bought a gold necklace at P15,000.  The next month, the bill arrived with a note to pay minimum amount of P550. I paid P550. The next month and the next. When I calculated, I realized that the interest was not going down. I'm still paying the interest for the whole amount of P15,000 even if I already made 6 months payment. On the seventh month, I paid the remaining balance and had my credit card closed.

Six years ago, my friend Zen, convinced me to get a credit card since she knows we purchase a lot of stuff.  I refused and told her about my bad experience with my previous card. Zen told me that all I need to do is pay the full so as not to accumulate interest.  I've been enjoying the perks and privileges of credit card ever since then. An example below, for every P3,000 purchase at any shop using Metrobank credit card, we get to choose from Cheetos, Doritos, Oreo and C2 for free at Robinson's Supermarket.

Use credit card wisely. Here's how:

1.  Pay the bill in full each month.  If you can’t pay in full, you shouldn’t be charging it for you'll soon find yourself clobbered by interest payments on a ballooning balance, as well as interest.

2. Check the terms and conditions that will determine your overall cost.

3.  Limit yourself to one major card with a credit limit you can handle so you don't go nuts when the bill arrive.

4.  Always keep your credit-card account number and the phone number of the creditor’s service line at home and in your wallet so you can call them any time the need arise.

5. If your card is lost or stolen, contact the bank immediately to cancel the account.

6.  Save your receipts for checking of any discrepancies with your monthly credit-card statement.

7.  Avoid late charges by paying before the due date.

8. Don’t give your credit-card number to anyone over the phone who pretends to be from your credit card company.

9. Don’t make any additional purchases with the card until the balance is zero.

10.  If you don't have enough fund, cut your credit cards and have it closed to avoid impulsive shopping and more problems in the future.

I used to have 7 credit cards, I closed the other 5 and retained BDO and Metrobank.


  1. I admire you for closing your other credit card accounts and decide to just maintain the other two. It takes a lot of discipline to handle credit cards especially when it comes to spending and paying them on time.


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