A credit card in the Philippines comes with a lot of negative misconceptions. According to a survey conducted by the Banko Sentral ng Pilipinas (BSP), only 2% of Filipino households have a credit card. The index presented by the United Nations Conference on Trade and Development (Unctad) also showed that only 3% of the Philippine population are credit card holders.

This trend can be attributed to the common misconceptions about credit cards among Filipinos. Below are some of these, together with the reasons why you shouldn't believe them.

Credit cards are bad for you 

Some people mistakenly think that credit cards are bad for them, but this is mostly because many use their credit cards irresponsibly. It's common to see people spending above their credit limit or not paying their credit balance at all. Paying attention to your usage and dues, however, will help you stay away from the credit card debt trap.

Credit cards are debt traps

There are plenty of credit debt stories among Filipinos that give credit cards a bad name. People fall in the debt quicksand because of the accumulated spending and compounding interest due to late payments. This can be avoided if you know how to manage your credit card responsibly. 

Credit cards make you spend more

Credit cards actually try to help you not spend too much via a credit limit. The credit limit is your "spending ceiling"—it's how much you can spend on your credit card without incurring interest or penalty fees. If you really need to spend, you can avoid exceeding your credit limit, or your budget, by opting for monthly installment options.

Balance on your credit card improves your credit score 

People often say that if you carry a balance and only pay the minimum, it will help your credit score. Therefore, most people are paying more than they should because of the credit interest accumulated when you pay only the minimum. You should always pay your dues in full; this way you can avoid finance and interest charges.

The best credit cards are hard to find

If you do your homework, you'll see that there are plenty of articles and information already laid out to make things easier for you. You can easily narrow down the best credit card for you by knowing the type of spender you are. For example, if you are a frequent flyer, you'll need a credit card that will fit your jet-setter lifestyle. On the other hand, if you love shopping, you might want a credit card that gives you a lot of rebates and discounts.

Credit cards offer the convenience not found in debit or prepaid cards. You can enjoy more perks and discounts if you know how to manage it well. Having the right mindset can help you maximize the benefits of having a credit card.

Getting the right credit card for you is not that difficult; simply compare with GoBear today!

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