Back MENU
Credit Card Basics

Thinking about your credit card application can be nerve-racking, especially for first-timers. The hard questions begin with, which bank and what credit card should you go for? But people often times neglect the harder question: Am I ready to get a credit card?


STOP:  Stop making credit card mistakes people make

Handling credit card requirements is not just being able to produce the documents which the bank needs to consider your credit worthiness. Readiness is when you know the reason why you're getting a card, how to maximize it and avoiding big debt. In other words, adulting.

There are probably more articles out there about card rewards than the mistakes people have been making that lead them to debt.

If you're applying for a MasterCard or Visa card to pay for the expenses without regard of how much money you can pay at the end of the month, then you’re probably not yet ready. People have a misconception of credit cards because it is as good as cash.

Every time you use the card, you essentially "borrow" the money. As one of the credit card requirements, make sure that at the end of the month, you have set aside the exact amount of money you borrowed in order to pay it back to the bank. If you overspent or spent more than your monthly salary can pay off, you'll end up paying more when the interest rate of the credit card racks up.


LOOK: Look at your personal needs before your credit card application

Before applying for a card, people usually ask for the lowest interest rates or a waived annual fee. You also need to ask yourself, "how much do I spend in a month and what reward is better suited for me?"

Does the majority of your monthly expenses go to groceries? Maybe on shopping? Do you fly very often? There is a card which considers all these rewards and one bank may give better airmiles or shopping freebies than others. 

Upon credit card application, some banks offer the lowest interest rates but they may be higher in credit card fees or they have a lower conversion of peso to points, which will give you less rewards. In order to get the best card, GoBear lists these important details so you can compare credit cards from different banks, side by side. Nifty!


LISTEN: Listen to people who have experience using the credit line

Everything you read online can be super confusing, especially for a first-time applicant.

Aside from a mountain of credit card requirements, the bank can have hidden charges and the fine print can be such a burden to read. But ask your tito and tita on how to apply for a credit card, and will tell you straightforward about all the "bewares" for having one.

Some people think credit cards are not essential because they don't know the rewards waiting for them.

You can spend less by getting a credit card with a cashback option. How is this possible? Cashbacks are essentially rebates you get when using the card on your purchases. Imagine getting 5% discount on your groceries by using the card or 3% discount on your gas consumption when you pay with the MasterCard or Visa card.

It's a sweet deal. And it's possible. 


Before calling the bank for your credit card application, make sure you know what card is best for you. Compare credit cards with GoBear search, which is free and will always be.