Thanks to flexible term, conditions and requirements, getting a credit card is easier than ever. Some people believe that credit cards allow unnecessary spending, while others swear by the benefits. In this post, we will talk of the benefits and cons at a glance, along with things that need attention.
Pros and cons
Let’s start with the pros first. Credit cards are handy and allow you to pay for almost anything. From paying the monthly bills to funding your yearly vacations, credit cards can do a lot of things for you. If you have a lot of smaller debts, you can repay them with the card, following which you just need to pay for one interest rate. Credit card users also get special rewards, discounts and offers from online and offline retailers, besides getting cashback, fuel rebates and other deals. Also, there’s a credit card for everyone. You can get special cards for women, frequent travelers and even minors.
On the flip side, people often overspend on their cards, which can lead to a messy financial situation, as the bank will charge heavily for late payments. Unless you are sure of making your payments on time, it is not wise to get a card in the first place. Also, credit cards are not free, and there are many hidden costs that are added to the bill, especially if the customer isn’t smart enough. Before you apply for credit card Philippines, you have to consider these aspects.
Things that matter
There are some good portals that allow you to compare credit card options easily, and these are extremely handy for experienced and new card users alike. Also, you need to consider the expenses. Besides the flat interest rate that must be paid on the card, you have to pay additional things like late payment fee and an annual charge for using the services. It is also a good idea to check the overall features of the card before taking a decision. For example, if you fly frequently out of the country, you need a card that offers good miles for every transaction, instead of one that’s offering discounts for certain sites.
As long as you pay your bills on time and use the flexibility in a responsible way, credit cards are useful and will remain a good tool for improving the credit score. Of course, you must do your research before selecting HSBC credit card or any option for that matter!