Credit Card Hacks

I worked for 2 banks in the past and a credit card account in a BPO. I handled complaints, reversals, finance charges, interest charge calculations, irate customers, and everything in between involved in credit cards and the like. This should tell you that I have a pretty good idea of what happens with credit cards here in the Philippines and how there are still so many people who do not understand how credit cards actually work which is why I have taken it upon myself to give you some credit card hacks.

1. No, you do not go to jail for not paying your credit card bills.

This does not mean you shouldn't pay because collectors are a nightmare. Short of changing all your contact details, name, and address plus the fact that it is so much easier now to track down people, just get on an arrangement with your bank or your bank's collector if you ever find that you can no longer pay in full. Trust me, these collectors would be more than willing to settle because a little money is still better than no money.

Also, if you sign an IOU or any promisory note, then YOU CAN GO TO JAIL because that would be ESTAFA.

2. If the store makes you pay EXTRA because you used your card instead of cash, it's called a SURCHARGE. Ask them to put it on the receipt as a separate amount and have it tagged as surchange. After paying, you can call your bank and report this. They can reverse the surchage fee. Your card should be as good as cash.


3. It's better to pay off the entire amount or go for the zero installment plan. The finance charge may sound small at less than 5% but if you purchase a lot, that 5% is based on your average daily balance, not the end amount.

4. Always pay on time. This may seem like a "common sense" kind of thing but late fees are added to your bill everytime you are late and that late fee gets added to your average daily balance which is the basis of your finance charge. Yes, everything gets multiplied over and over again when you are late and you haven't paid in full.

5. Lastly, have this thinking. If you can't afford to pay off in full at the end of the month, do not charge it to your account. If you don't believe me, then just compute all the interests you paid off in a year and be shocked to see that it could have already put on a full outfit for you and when I say full I mean lingerie, top, bottom, shoes, and bags.

Be smart. Be wise. Be in control. You own the card, the card should never own you. It is there for your convenience and not to inconvenience you.

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22 comments:

  1. Very good tips. Thank you very much!!

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  2. So it's important to use credit card wisely to avoid issues

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  3. Oh wow I had no idea you can have that surcharge refunded!! I have been charged that a few times and it’s so annoying! Will definitely keep this in mind! Great tips for the younger generation cuz I feel like they really will need these lessons in credit!!

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  4. Yes, controlling your spending is whats important.

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  5. These are wonderful tips. I had no idea you could avoid surcharges when using a card rather than cash by having them done on a separate bill and then contacting the bank!

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  6. This article is really useful and explain me how to manage my credit card usage wisely. Thank you!!

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  7. This is such an amazing tips that need to be know by others. And yes, if you have a credit card/s you should be responsible of using it. Control its usage and spend it wisely.

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  8. Thank you for the tips. This should refresh us on our responsibilities and obligations. Being in control of our spending can be the key to avoid such troubles.

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  9. These are some great hacks.Very useful.We should use our cards efficiently

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  10. I thought I knew a lot about credit cards, but you've discussed topics that I wasn't even aware of. For example, had no idea that a bank could reverse the surcharge, if you just contacted them. I feel a lot people could use this information, because even though some of it is common sense information. They are people who don't know the basics when it comes to credit cards and how they work.

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  11. Geraline BatarraJune 5, 2019 at 1:05 AM

    Great tips for those who are planning or who already have a credit cards. Thanks for sharing. 😊

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  12. These are some great credit card hacks that I know a lot of my friends will appreciate.

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  13. Very good tips, I agree with all these tips. I have been following same tips and have been doing great with managing my cards

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  14. I never knew about this. Glad I was able to read this hack. This is something that can be very useful for me.

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  15. I always use my cards and it is very important for me to pay on time or as much as possible to always pay in full. I believe that it is one of our responsibility.

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  16. These are some really good tips indeed. Especially the one about the credit card surcharge.

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  17. Very useful tips when adulting. Thanks for sharing, very useful and detailed.

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  18. Thanks for the tip. Its always smart to not go about just swiping your card. Although i did this a few years back but im a lot smarter now.

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  19. I always keep my card payments up to date. But yeah it is an important and thought provocative post

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  20. These are such great tips. I'm not a credit card user but my friends does. I'll share it with them.. 😊

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  21. I don't have a credit card but here in Philippines we have home credit.. It works like credit card.. I always make sure I pay on time..

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  22. These are really excellent tips! I was not aware about the surcharge tip! Will start to implement that!

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