How Credit Card Saved My Life

Nung high school pa ako, sobrang negative na ng reputation ng credit cards sa akin. Dala na rin ng mga payo ng parents ko, pati na rin sa mga kakilala namin na nagkanda utang utang dahil kumuha sila ng credit card.

Nang nagkatrabaho na ako, dala-dala ko yung mga gabay na yun. Kaya kahit anong "peer pressure" man, never talaga akong nagcredit card. Free annual fee? Di uubra sa akin yan. Just your ID needed to sign up? Kayo na lang! Never in my life have I imagined na gagamit ako ng credit card.

Fast forward sa pandemic, nakahiligan namin ng kapatid ko ang panonood ng vlogs about "Financial Independence". Sobrang dami naming natutunan, lalo na sa mga Pinoy vloggers na nagwowork o dating nasa bangko. And while we are learning about F.I.R.E. (Financial Independence, Retire Early) movement, napag-usapan na rin ang tungkol sa savings, credit score, at mga bagay na related rin sa credit card. Until such time na umabot na kami sa mga topics discussing the pros and cons of having a credit card.

Ang daming misconceptions sa credit cards sa totoo lang. At natutunan ko yan lahat sa pag-iimmerse sa mga vlogs about financial freedom and adulting. Although maganda naman talagang may cash ka, pero may mga bagay rin sa mundo na kahit gaano pa kalaki ang pera mo on hand, hindi mo mabibili kung wala kang credit card.

At eto na nga, dumating na sa point na nakakuha na ako ng credit card sa isang bank. And because I have a good paying and spending relationship with the financial institution, madali akong naapprove. Ang dami ko pa ring inadjust kung paano ko ginagamit ang card ko. And sobrang handy rin ng mga tips na natutunan ko sa mga vlogs. Nangangapa pa man, but I'm already getting the hang of it.

I never really had any major purchases with my card since it is really designed to earn points from grocery shopping. So I use it mainly for my daily and basic needs para na rin makaiwas sa pagdine out para makatipid, and also to maximize the points. However, just recently, I made a huge purchase using my card. Straight payment since they don't allow installment for such payments. It was for the hospital bill of my mama.

My mama got hospitalized for a week because of a life-threatening disease. And everyday, while she's still admitted, we were keep on checking our hospital bill. We were scared if we can afford the final bill knowing how long she has been admitted.

And then the final bill came. Even with the deductions from the HMO and Philhealth, it was still a hefty amount. We divided the excess and I charged my share to my credit card. It was almost a month back from today, and the due date is sa first week ng susunod na buwan pa.

During the time na inutang ko muna sa bangko yung share ko of the excess final bill, through my card, I was able to raise money to cover the expenses of that purchase. That's when I realized na hulog ng langit talaga ang credit card.

Even if I don't have the card, I do have saved up an emergency fund for cases like this though. But the leeway the credit card gave me to save up more to buffer up my emergency fund was such a huge help. I was confident to charge the bill to my card because I already have the amount on my emergency fund, it's just more advantageous if I charge it instead, so that I can still have time to collect more funds for it.

Just a reminder to never charge any amount that you do not currently have to your card. Ganyan ang reason kung bakit may nababaon sa utang dahil sa kakaswipe ng perang wala naman sa'yo.

A credit card is not a source of excess funds, but rather, it is a tool that you use to charge payments, with an amount that you would then owe the bank or financial institution. In short, UTANG YAN. Nasasa'yo na kung madiskarte kang umutang na dapat wala o konti lang ang interest, at mabubuild up mo pa ang credit score mo for future purposes.

So for me, malaki na rin ang naging tulong sa akin ng credit card. And as an adult who is starting the path to financial independence, it has already taught me a lot of lessons. Baka ikaw rin.🐼