List of 5 Common Credit Card Myths You Should Think Twice About
CREDIT CARD – Here is a list of five(5) common myths about the said card that you should not believe in.
Most people have different views when it comes to credit cards. Undeniably, a lot of individuals fear applying for it as they may not be able to handle it well and get buried in debts. On other side, some individuals see the positive side of owning at least one(1) card.
The said card may serve a lot of purposes and it is most beneficial in the face of emergencies. It can be used in paying hospital bills, utility bills, and even in making big purchases. Among the institutions that usually offer it to the public are banks.
A lot of banks in the Philippines offer credit cards to the public. It includes the Bank of the Philippine Islands (BPI), BDO Unibank, Land Bank of the Philippines (Landbank), and the Asia United Bank (AUB).
However, despite the many advantages of the credit cards, a lot of people are hesitant to have it due to credit card myths. Actually, there are these common myths that you should not believe in or, at least, think twice about.
Credit cards will leave you in great debts
This myth is undeniably one of the reason you can hear from a lot of people why they did not apply for the card. However, if you know how to handle it well, you can avoid being left in great debts. It all boils down to your discipline and firmness in using the card. You may use it for solely emergency and practical reasons.
Credit cards will increase your expenses
Most cards have annual fees and as well as other service charges for certain transactions. But, there are also cards that have no yearly fees and charges. In choosing which card to apply for, it is important to check on the charges implemented by the different banks.
Credit cards are only open for wealthy individuals
This myth is not true. Undeniably, a bank offers a credit card as part of the services where it can generate even a little income. Thus, as long as the bank sees that you have the capacity to be a card holder, your application will most likely be approved.
It is okay to make big purchases through a credit card as you will pay for it in installment
This is the myth that you should not believe in to avoid the first myth stated above from coming true. Although you will pay for it in installment basis, you will still be paying for the said amount plus the interest. Also, there are cases wherein long-term payments may pose higher interest on your actual purchase.
Credit cards may get you into troubled transactions
Often times, a lot of people don’t want a credit card due to the myth that it may leave you embarrassed or in an emergency situation at the cashier or after a dinner. Banks may go offline. But, although this may happen, most of the time, this is not the case. Several banks are making sure that their clients don’t get stressful transactions at the end of the line.