Applying for a credit card in the Philippines is so easy nowadays. You can submit your credit card application online, without taking a step out of your house or taking more than 5 minutes to fill out the application form. The question is this: should you? Many Filipinos are taught from a young age to stay away from debt and think twice about spending money that we don’t have. You’ve probably heard a cautionary tale or two about improper credit card use in the past, but that’s not all there is to it. In as much as owning a credit card is a responsibility, it’s also an opportunity that can present conscientious users with plenty of tangible benefits down the road. Here are a few good reasons why you should own a credit card: • Purchase big-ticket items and pay for them in installments. Many consumers are attracted to the idea of owning a credit card because it provides them with a convenient way to shop now and pay later. With a credit card, you can take home items of significant value—new appliances, perhaps—and pay for these purchases in installments in the next few months. It’s a great way to get your hands on items that you really need but can’t pay for entirely in one go. Some banks even offer a 0% interest rate for significant purchases if they are paid for in full within a given time frame. • Enjoy rebates, discounts, and other rewards with your purchases. To encourage consumers to use their credit cards and to show appreciation for their loyal customers, banks and shopping centers often offer credit card users plenty of opportunities to earn rewards while shopping. You can, for example, spend P5,000 on this month’s groceries and land yourself a free lunch or a 10% rebate. These rewards might seem like a small thing at first, but that’s a lot of freebies if you consider the fact that you’ll be using your card for a few years. • Be prepared for emergency financial needs. In times of need, like a medical emergency or an unexpected but necessary expense, you can count on your credit card for additional funds. A credit card can be used to pay for emergency hospitalizations or to pay the hospital in installments in case you’ve racked up a significant amount. Having the means to solve financial emergencies can give you peace of mind while you’re still building your emergency funds. • Save time and effort when shopping online and in-store. Most local and international businesses accept credit cards, so owning a credit card will make it much easier for you to purchase items in physical stores and online shops. Using a credit card is also a much better option if you’re not too comfortable with the thought of bringing a lot of money with you. • Track your spending down to the last cent and study how you use your money. Using your credit card to pay for everyday purchases allows you to study your spending habits. Your bank can send you an itemized list of your expenses as well as a notification every time you complete a purchase. These features, in turn, gives you the unique opportunity to track exactly where your money goes. You can use this information to rethink your budget and cut down on unnecessary costs. • Improve your credit rating and your eligibility for various loan products. Before granting loans, banks must first ensure that the entity they’re going to lend money to has the capacity to pay for the loan. A borrower’s credit rating serves as a measurement of their creditworthiness. If your bank records show that you are diligent in paying your credit card bills and other debts and you have a high credit score because of these practices, then you have a better chance of getting approval for your loan application. Only If You Can Use Your Credit Card Wisely Take note that you can only have access to these advantages if you make every effort to use your credit card with care. It’s hard to appreciate the conveniences and the peace of mind that comes with owning a credit card if you can’t manage your money, if you struggle to pay your bills and meet your other financial responsibilities at the same time, or if you’ve racked a huge amount of debt. Before submitting your credit card application, evaluate your relationship with money first to see how you’ll fare with a credit card on hand. If you deem yourself responsible enough for your financial decisions, then you might be ready to have a new financial tool under your name. With the right mindset and financial discipline, you’ll be able to use your credit card to give yourself plenty of long-term advantages.