Credit Card

Everything You Need to Know Before Getting Credit Cards & Loans

Credit Card is the most convenient way to pay for anything without using cash. It is basically a short-term loan or a ready-to-use credit line packed in one tiny card. Many people are caught in the dilemma of whether to avail a credit card or not. Some people fear getting tangled in debt while some people see this as an opportunity to shop at ease. Let me tell you why it is good to have a credit card and when it not good anymore.


If you don’t have any intention to commit to a long-term loan and the amount you need is small, then a credit card is a better option. Here’s why:

  1. Fewer Documents – One-time credit card application to sign vs. a conventional loan where you need to sign every time to get a loan.
  2. Handy – A loan in a small card that you can carry and use anywhere in the world.
  3. Quick Transaction – Every transaction is just a swipe away.
  4. Standby Credit Line – Unlike a typical loan where you will be given a lump sum amount of your loan, a credit card gives you the freedom to use as to how much you only need.
  5. Freebies – Loans will not give you freebies such as rewards points, travel miles, cashback, airport lounge access, and many more.


Everybody needs to buy something; food, clothes, gadgets, etc. Or avail services and the easiest way to pay is thru credit card.

  1. Safer – Imagine your wallet with $100 cash was stolen, you can’t get it back anymore but if your credit card gets stolen, you just have to call your bank to block it.
  2. Freebies – Most credit cards give away points, travel miles, cashback, airport lounge access, and many more which you will not get by paying cash. The price of the item is the same even if you pay in cash or credit but you will get perks when you buy using your credit card.
  3. Easier Monitoring – You get a billing statement with the exact details of your payments and purchases. This eliminates the need to log and encodes your purchases vs. the cash in your bank or wallet.
  4. Online Transactions – Most services and products we get online are payable via credit card. Cash-on-Delivery is rare especially this year of 2020 when we are trying to lessen the use of cash. Money is indeed dirty, both figuratively and literally. Many airlines only receive credit card payments.
  5. Faster – This eliminates the part where the seller needs to count your cash and you need to count your change.
  6. Credit Score – The record of your purchases and payments creates a credit history where many financial institutions rely on when giving a person a low or high credit score. You will need this score whenever you loan for a higher amount like a car loan, a home loan, or a business loan.


Too much of something is never good. Once you get used to using a credit card, this is also the time you should know about the dangers of using it.

  1. Temptation – Every credit card is a temptation to buy. So just keep one or two credit cards the maximum. A lot of people has this problem of treating credit card as if it was an ATM. Later on, they realize they don’t have enough money to pay for it.
  2. Annual Fees – All credit card has annual fees although some may offer a “free annual fee for life” or yearly waivers. Ask your credit card company how to qualify for annual fee waivers
  3. Interests – Interests are usually higher than loans but you don’t’ need to worry about interest if you pay full on every billing cycle
  4. Other Charges – Some cards may have hidden charges, penalties, and many more that you may have forgotten to read in the very small section of “Terms and Conditions”. Most cards usually just have the interest and annual fees.
  5. Fraud – Many have fallen victim to this especially online. People buying from and subscribing to fraudulent websites is the most common. Another form of fraud is phishing, the criminal only need is your credit card number and 4 digit security code at the back of your card. Beware of credit card-related scams.


The benefits of having a credit card still outnumbered its disadvantages. The real question is not if you need a credit card, the question is, can you be responsible for using a credit card?

Subscribe to my Newsletter

Be the first to receive the latest buzz on upcoming contests & more!