Flexible Payments
Not
everyday is shopping day, but if you have a credit card, you can practically
buy what you can and pay just one-third of the amount owed next month.
So,
if you are buying the iPad Air, which costs around PHP 32,000, you have to pay
the exact amount if you want to buy in cash. But if you have a credit card and
you want to buy the iPad, you just have to swipe your card. If you buy an iPad
air, your purchase will reflect in your next bill and you’re only required to
pay at least the minimum amount of 3%: around PHP 1,000.
Speaking
of flexibility, you can take advantage of 0% monthly interest promos that most
credit card companies in the Philippines offer. If you take advantage of a
three-month 0% interest promo for your iPad Air, you just pay around PHP 11,000
for three months with no interest starting not today, but next month.
If
the promo is for 12 months at 0% interest, you will only have to pay around PHP
2,600 per month starting next month. That’s a PHP 30,000 difference, and a lot
better than paying in cash, because you can make use of your cash for other
stuff or save it for an emergency fund.
Worry-Free Utility Bills Payment
This
is one convenient feature of credit cards offered here in the Philippines,
since most credit card holders pay utility bills. Paying these bills through
your credit card will help you:
· Avoid the long lines
in payment centers
· Pay ALL your bills
through one statement
· Organize and track
your bills
Let’s
say you live in the Metro: you have to pay Meralco, plus your Maynilad or
Manila Water bill, plus your phone bills, among others. To make things worse,
they have different due dates. If you use your credit card, you can set up an
auto-pay facility to take care of your bills once they arrive, and then all you
have to pay is your credit card statement. Better yet, you can also pay your
credit card at home or wherever you are through online banking.
Supplementary Cards
If
you have a big family, or you have a loved one who is far away, or if you’re
teaching your teenager to manage finances, supplementary cards can be a good
tool. Supplementary cards work like sharing your credit limit. If your credit
card has a PHP50,000 credit limit, you share it with your supplementary card
holders.
You
can rely on supplementary cards during emergencies too. Let’s day your daughter
– a first time driver – just had her first flat tire; she’s far away and
doesn’t know what to do and where to go. If she has her supplementary card,
emergency money is not a problem. Whatever she buys through her card will
reflect on your bill as you are the primary card holder.
Balance Transfer
Sometimes,
unfortunate events happen that make our already tight finances suffer even
more. Sometimes it’s unavoidable to have debts and compounding interests on
several credit cards that you own. Fortunately, you can consolidate your debt
into one card through balance transfer.
Let’s
say you have four credit cards from different banks, and you are paying 20%
interest monthly. If you take advantage of a balance transfer, you can pick the
bank that has the lowest interest and consolidate your debt into that bank’s
credit card, and pay only for one interest per month. Contact your banks
regarding this option and choose where to transfer all your debts.
These
perks and benefits would not be to your advantage if you’re not financially
responsible. It always depends on how you use or misuse your credit cards. If
you’re an impulsive and reckless buyer, don’t expect to be debt-free!
About
the Author:
This
article was contributed by Mark Yasay of MoneyMax, Philippines leading
comparison website. This portal helps individuals in saving money by comparing credit cards, personal loans,
insurance and broadband plans.
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