Credit Cards

Noemi Lardizabal-Dado   Thursday, February 15, 2007   11 Comments on Credit Cards

credit cardsFinancial institutions seem to be very liquid these days. They are giving out credit cards as if it is a bank brochure. The other day, BPI Express Credit sent me two [tag]credit cards[/tag]. I don’t understand why they have to send me a credit card when I already have a BPI Express Credit card since 1989. *snip* *snip* The lady at the Express Phone protested when I told her that I had no need for additional credit cards. A few weeks ago, Banco de Oro (BDO) also sent us credit cards. *snip* *snip* I believe in having a credit card but two are enough, thank you. I used to have a VISA card but I snipped that a year ago . It’s just so much easier to balance my budget. My husband has three credit cards and he plans to snip one card as soon as he pays off a “zero lite” plan.

Why would anyone need so many credit cards? It causes anyone to go into debt much faster, thinking of the additional cards as a standby.

The first credit card I ever had was Diner’s Club in the early 80’s. During those days, credit cards were very limited in the Philippines and often offered to businessmen or the “rich”. As a struggling career woman, I didn’t qualify for a credit card. Anyway, I got mine as supplementary card from my dad. After a few years of wise use, it paved the way for me to get a credit card on my own. Then credit cards became an “in thing” in the late eighties that more bank started on credit card operations.

Through the years, the advantages of credit cards outweighed the disadvantages.

1. Established our credit line. Having a good credit history is often important . It got us our first housing loan in 2000. Because of the credit history with the first loan, we got a second loan.

2. Emergencies. I can think of the Hospital bills where our health insurance refused to cover. When the ATM is down or runs out of cash, I can use my credit card.

3. Ease of Purchase. I like how I can shop online for things not often found in this country. Take for example, amazon.com.

4. Credit Card benefits. I like the reward points which got me a microwave, electric fans, handyman tools, office chairs and I forgot.

The only disadvantage of credit cards is that the ease of purchase makes me want to buy more. This is where discipline comes in. I limit purchases to grocery, medicines and fuel because they are basic necessities in life. Luxuries are best bought in cash if I can help it.

With all the credit cards available to consumers, it makes me wonder why these credit card companies charge renewal fees when they receive so much “commission” from the sales. Oh yeah, I once complained to the bank about the membership fees . They told me to use my reward points to pay the fees. Right. Spend and get rewarded. How thoughtful.

Noemi Lardizabal-Dado (1346 Posts)

You may contact Noemi (noemidado @ gmail.com) for speaking and consultancy services in the following areas: Parenting in the Digital Age (includes pro-active parenting on cyber-bullying and bullying) ; Social Business ; Reinventing One’s Life; and social media engagement. Our parenting workshop is called "Prep to Prime (P2P): Parenting in the Digital Age (An Un­Workshop)" P2P Un­Workshops are conducted by two golden women in their prime, Noemi and Jane, who have a century’s worth of experience between them. They are both accomplished professionals who chose to become homemakers. This 180­degree turn also put them on a different life course which includes blogging, social media engagement and citizen advocacy. They call their un­workshops Prep to Prime or P2P, for short, to emphasize the breadth of their parenting experience. They tackle different aspects and issues of parenting ­­ from managing pregnancies, prepping for the school years of children, dealing with househelp, managing the household budget, to maximizing one’s prime life and staying healthy through the senior years.


About Noemi Lardizabal-Dado

You may contact Noemi (noemidado @ gmail.com) for speaking and consultancy services in the following areas: Parenting in the Digital Age (includes pro-active parenting on cyber-bullying and bullying) ; Social Business ; Reinventing One’s Life; and social media engagement. Our parenting workshop is called "Prep to Prime (P2P): Parenting in the Digital Age (An Un­Workshop)" P2P Un­Workshops are conducted by two golden women in their prime, Noemi and Jane, who have a century’s worth of experience between them. They are both accomplished professionals who chose to become homemakers. This 180­degree turn also put them on a different life course which includes blogging, social media engagement and citizen advocacy. They call their un­workshops Prep to Prime or P2P, for short, to emphasize the breadth of their parenting experience. They tackle different aspects and issues of parenting ­­ from managing pregnancies, prepping for the school years of children, dealing with househelp, managing the household budget, to maximizing one’s prime life and staying healthy through the senior years.

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  • http://mangopearl.blogspot.com/ Belle

    I only have one credit card and I only use it for buying books at Amazon.com, buying plane tickets, making hotel reservations, and for emergencies but I always make sure I pay off before the due date. It saves me from paying the interest or late fees.

    Otherwise, I use mostly cash or debit card for every purchases. If I can’t afford it, I don’t buy it.

  • http://docuventaries.livejournal.com/ Christianne

    I agree that two credit cards are enough for emergencies. It also helps to keep your credit limit low (we were offered increases repeatedly, we just asked the bank to keep it at P25,000) to avoid over-spending. Here we use debit cards and don’t have a credit card. I already shop too much online as it is, having a credit card would be a disaster 😀

  • http://feistymomma.com dexie

    We only have 2 credit cards. That’s all we need.

  • http://carlo.myjournal.ph Carlo

    I have 4 credit cards and I use all of them. Citibank increased my credit limit just last month making me qualify for an American Express card. I wanna cancel all of them coz I am paying too much already… I find it a necessity but yes, you’re right, 2 is enough. Hopefully this year I will be able to cancel the 2 other cards.. *Haayz!*

  • http://jrocas.com.ph jhay

    Wish I had my own credit card. 😉

    Of course, I need to get my own bank account first.

  • http://aboutmyrecovery.com Noemi

    @Belle- that’s great discipline. I actually have one under my own name. The other one is a supplementary card.

    @christianne- yes they keep increasing the credit limit as if we will spend that much. I never had to go over my needs.

    @dexie- like i said 2 is enough. One for standby

    @ Carlo- wow…hehe. you’re single so maybe they think you need to spend. It’s good you plan to cancel two. Let’s not make these credit card companies any richer.

    @jhay- once you work i bet all the credit card companies will mail you.

  • http://zippinoy.blogspot.com Zherwin

    i had a credit card a few years back but i had it cancelled because that time i still don’t know how to control spending (think of cd’s). it was both good and not-so-good decision. good because i learned how to control my cd-addiction and not-so-good because when cash runs out and in case of emergency, what do i have? nothing.

    right now, i just ride on my gf’s credit cards for big stuffs (the 0% interest installment is good) and she’s more than happy to do that (with that big “more points, more points” smile). i think debit card is also a good thing and it saves you with the cashier’s “sir, okey lang po bang kulang ng 25 cents, naubos po kasi…” 🙂

  • http://paraz.com Miguel

    Unfortunately, many establishments — and all dining places it seems – do not have terminals for ATM debit cards. Visa Electron and Mastercard Electronic aren’t widely accepted, either.

  • http://mrniceash.wordpress.com mr nice ash

    i had a horrible experience with credit cards as well to the extent that i don’t even eat breakfast just to pay the bills. uhg…

    … so you really ‘slaughtered’ those cards 🙂 …

  • http://aboutmyrecovery.com Noemi

    @mr nice ash- seriously? I hate being in debt. Yes I really snipped them aaway

  • analie

    i am about to have a credit card this april and thanks for the tip that i know now that there is actually no need to apply for another one as i am also afraid to go full in debt at credit and fall out of cash.

    thanks for the tip that you have given in this post.