MikeLigalig.com

By Nomad Finance Girl
I was already 27 when I got my first credit card.

If you Google the word “credit”, eto ang lalabas:

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

So, getting a card assumes that you can pay.

Hindi ka kukuha ng card dahil wala kang pera. You will get one because you know you’ll be able to pay.

Here are 3 conditions I had for myself before getting a card:

Only get a card if I can pay in full - 100%, every single month, walang palya.

Whenever I get my statement, I always pay in full.

Kadalasan, maririnig natin ang advice na pwede kang magbayad ng minimum. Totoo yon, pwede naman talaga.

Pero porket ba pwede ay dapat?

Before I got a card, I asked myself, “Will I be able to pay in full every billing statement?”

Kasi kung hindi, di na lang ako mag cacard. Bakit?

I don’t want to place myself in a position where I get the power to buy something I won’t be able to pay for. The stress is not worth it.

Having a card gives us the illusion that we can buy anything we want because we’re not seeing actual cash come out of our pockets. But what’s really happening is we’re getting money from our future selves.

Use it for installment purposes.

If I can pay the item in full, I’ll pay for it right away (para tapos na).

But a card would be useful if I want to pay the item in installments. I often do this for gadgets that I need for work. My mentality behind gadgets is I’m “renting” them out. After 1 to 2 years, I can sell them and use the money to “rent out” another gadget.

But, when I do this, just like Condition 1, I make sure that the total payment of all “rented” items can be paid in full every billing period.

Use it for organization purposes.

When I pay for necessities like groceries, life insurance, house bills, I use my card.

The only reason I do this is so that I can collect all payments into one payment date and just pay them in one go.

Again, this goes back to Condition 1: PAY IN FULL.

As you can see, my hard set rule for cards is simple: IF YOU CAN’T PAY IT IN FULL, DON’T GET ONE.

The stress and worry that comes with not being able to pay debts is not worth the short-term pleasure that comes with shopping.

Mas marami kang utang, mas marami kang harang towards wealth growth and financial freedom. As much as possible, avoid placing these obstacles in your way.

Hope this helps!

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IMPORTANT: There have been a lot of credit card call scams lately. Ang gagaling nila, they sound so professional and legit. Please be careful whenever you receive calls asking for your details. I tell them, "I'll settle this face to face with my bank manager", and they stop there. Never go for non-face-to-face transactions when it comes to settling your accounts.

Another great reason to get a card is to increase your credit score. Each card holder has a credit score which determines whether lenders would want to let you borrow money or not. So, kung panget ang credit rating mo, hindi ka makakautang for "good debts" - eg: bahay, business capital, etc. Make sure you keep your credit score healthy!

Post is not sponsored. Here are my considerations when choosing a bank: available payment channels, benefits, access to VIP circle, and manager to client ratio.

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Learn more about Nomad Finance Girl or get her book, "How to YOLO Wisely" here: heylink . me / hellonfg (remove spaces!) <3

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