I used to abhor credit cards. Back then, I thought that any kind of plastic money aimed at jeopardizing one’s finances was utterly bad. And I must see to it that I wouldn’t fall into those foolish traps of capitalism. In fact, I used to believe credit card companies do nothing but think of ways on how to lure people into spending more than what their financial means can afford.

Over the years, my ears have been flooded with stories of people who had credit cards and ended up either bankrupt, debt-ridden or poorer than ever. Hidden charges, high interest rates, false advertising, compulsive shopping and the strong temptation to overspend were just some of the topics they would discuss on the downsides of having credit cards at one’s disposal. Apparently, this “buy now, pay later” scheme being pushed by credit card companies seem to work. But in the end, people would realize that credit cards aren’t as practical and helpful as they sound. Or so I believed. Then.

When I landed my first job, I was faced with several credit card offerings. Sometimes they were in the form of calls from telemarketers, other times they were through friends who have experienced “bliss” from hassle-free purchases courtesy of their what seemed to be ever-dependable credit cards. But I did not give in. I stood by my policy of NO credit card reliance whatsoever the financial need may be.

But things, and my personal views, would soon change. Several months later, persuaded by our good friend who works as a bank teller, my Superfriend and I applied for a credit card for the first time. It was not a long wait. Before I knew it, the crisp and shiny credit card was there staring me in the eye. I welcomed it as an opportunity to get first-hand information on the effects of credit cards to one’s finances. This time, it’s my own.

Given my credit card experience, I found out credit cards are not bad as I once perceived them to be and that what the credit card companies do is purely business. It’s how we handle credit cards that could improve or ruin our finances. If used intelligently, credit cards serve the following purposes for you:

• cashless shopping (no need to bring lots of cash with you)
• cash advance during emergencies
• accumulation of points for rewards
• low and fixed interest rates (this depends on your credit card company)
• discounts to restaurants and shops
• other perks and privileges

So far, my credit card use is always within limit and my finances is as sound as I like it to be. I’m not rich so I’d have to admit credit cards are really helpful to me and my family especially during times of need. With proper use and smart spending, I believe people won’t get traumatized by credit cards. Or credit card companies for that matter.

I’m no financial adviser, but let me share with you some credit card advice that I have proven to be useful:

1. If you can pay in full, do it. If you can’t, always avail of the 0% interest deal for your purchases and pay in installment.

2. Avoid late payment and always pay at least the minimum payment required. This will keep you from getting high interest charges.

3. Keep track of your credit card use. Just so you know if the credit card company/bank charges you accurately.

4. Know your due dates and cut-off dates. This is particularly useful for salaried employees so you know when to allot money for credit card payment.

5. Choose credit cards with low membership fees. Usually, membership fees for the first year of use is waived and you get to pay the next year. Membership fees are paid monthly or annually and can range from P800-P2,000 depending on credit card companies and credit card types.

6. If you have credit card inquiries, don’t hesitate to call customer service. The more you know, the less complicated and the more enjoyable your credit card experience will be.

Presently, I have two credit cards (the second one is barely four days old) and I find them very useful. As a breadwinner, I manage the finances of my family and that means I have to be extra careful in budgeting our limited money. So far, I have yet to encounter problems with my credit cards. And I don’t plan to overspend anytime soon.

I think the key here is a sense of responsibility. Always remember that you and you alone are the one accountable for each peso you spend using your credit card. You borrow, and therefore, you have to pay.

How about you, how is your credit card experience?