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Credit Card Tips

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Did you miss our blog on the top questions people ask about credit cards? Here's a jucier and meatier comeback! This time we're laying it bare for you to digest. 

Are BPO employees blacklisted in getting credit cards?

As much as GoBear is an equal opportunities employer, the website also makes sure that all users are properly attended to. As long as you meet the requirements set by the bank, your loan will be processed, regardless of your company. To know more about the requirements and eligibility, compare credit cards through www.gobear.com.ph, where you can find the features, charges, promos and how each card fairs among the best in the market.

Compare before you commit. It's free, and that's how we'll always be.

 

I haven’t paid the outstanding balance of my existing credit card. Can I still apply through GoBear?

GoBear is a comparison site, more specifically, a metasearch engine to help you find the best card for you. Which means, it is not a lender nor does it provide value judgment on what is the best credit card for you. We can, however, provide best practices with questions like these.

You can definitely compare and apply through GoBear, even with an outstanding balance with your existing cards. But to save your sanity, we strongly recommend that you settle your existing account first. Remember that getting another credit card will not erase your history of bad credit on another card. It is never erased because it will be part of what you call a credit history. Credit history is shared between banks, to help them decide if you are worthy of another line of credit, including car loans, home loans or personal loans.

 

I have an outstanding balance on a credit card which I have ignored for a while. What will happen to me?

After 3 months of paying the minimum or less than your minimum bill, the banks will start calling you here and there. If you decide to ignore paying your card, which is more technically known as "default," you will be tagged as a delinquent payer in the system.

When you keep ignoring the calls and letters, the bank will send your account to a third-party collection agency, who are more aggressive. They will proceed with schemes to make you pay because whatever you have settled on (may it be a smaller amount than your actual debt), will become their revenue.

You won't go to jail. But the bank may take the matters legally by asking the courts to allow them to freeze your bank account and take your money as payment for your debt.

 

Why do I need a credit card when I have a debit card instead?

Good question! The answer is as simple as this: using a credit card is more secure than using a debit for your swiping needs. It has features which protect you from fraud or scams. As an example, when you use your credit card on big ticket purchases, it will fire an alert on the banks system. They will instantly text you to let you know that this credit card was swiped at this store with the corresponding amount. In other cases, depending on the bank's security measures, the cashier where you made your purchase will receive a call from the bank so they can confirm said purchase. Your debit card does not have those features.

What is the best kind of credit card: points, cashback or airmiles?

It depends on your needs. The better way to answer this question is to find out what you spend on the most when using your credit card, and what kind of reward do you want later?

Get a points credit card if you want to accumulate points for every peso you spend. Later, those points you accumulate can be converted into rewards like gift certificates on your favorite malls, retail stores, restaurants and more!

Get a cashback credit card if you want to get discounts on specific purchases like groceries, shopping, fuel, dining, or travel. If you choose cashback, you should know that some cards have expiring points while others don’t, and most cards have a limit of how much rebate you get per month. Make sure to look at the cashback conversion of each category. If you use the card monthly on groceries, get a card with up to 5% cashback on groceries.

Get an airmiles credit card if you want to accumulate "airmiles" or "frequent flyer points," which you can later convert to free tickets for your next flight. These cards also have more traveler perks for the jet setter, like free use of the airport lounge in the Philippines and other countries, discounted items like luggages.

You can find all these benefits and features if you compare credit cards with GoBear.

Tips on handling credit cards?

Number one tip is to not swipe your card on things, which you cannot pay for in full on your due date. In essence, keep the same budget you have before you ever had the card. Whatever that budget is, don't max it out until the last week of your buying schedule, to give you some sort of a leeway on emergency situations.

Number two tip is to avoid the cash advance feature of your credit card. It has a higher interest rate than getting a personal loan. Never result to using your credit card for emergency situations, unless the amount is within your monthly budget.

Number three tip is to avoid getting a credit card just because of the freebie or the big discount you will get on your first purchase. It's just the first purchase. Agents have their way to lure you in getting a credit card. But before you commit, check out www.gobear.com.ph/credit-card and compare credit cards with GoBear for free. See all the details and check if it really fits your needs.

Top Related blogs:

1. What's in a credit history and what should I know about it?

2. Low-interest program to help you pay off your credit card debts

3. Six ways to get out of credit card debt


Ready to compare credit cards with GoBear Philippines for free? Start here.