FAQS, Tips, and Tricks on Credit Cards

Having a credit card is a huge responsibility; and getting your first can be pretty overwhelming with the options available in the market. Here are some of the FAQs that people usually have when it comes to credit cards. I’ve also added in some tips and tricks when using credit cards that I’ve learned over the years.

Note: Some bloggers/vloggers have already discussed the basics of credit cards so I won’t be tackling similar questions anymore.

I plan to get a credit card. Which one should I get?

First, let’s talk about the bank. For those starting on their credit card journey, it is recommended you get a credit card from a bank you already have an account with. This is because your bank’s officers can help you with your credit card application since they already have your information. If you don’t get approved through this route, you can inquire about secured credit cards. Secured credit cards basically works like any other credit card but uses your savings account as collateral (the deposit amount becomes your credit limit).

Next, let’s talk about the network. A credit card network refers to whether a credit card is under Mastercard, Visa, Diners Club, American Express, JCB, or UnionPay. Aside from the differences in the promos available, some networks are more accepted by merchants. In the Philippines for example, Mastercard and Visa are more widely accepted than American Express and Diners Club.

Lastly, let’s talk about the “type’. When I talk about the type of credit card, I usually associate it with its rewards system – whether it’s a cashback, rewards, or a travel credit card. The type of credit card you apply for may vary depending on what you want to get out of your card.

I saw a bank’s booth offering credit cards. Can I apply with them?

Yes, but only do so as a last resort. Or if you don’t mind missing out on good sign-up bonus promos. Agents manning those booth are often times notorious for applying one to multiple banks, not just the booth their handling. Aside from the fact that you won’t know which card and bank they’re applying you to, getting approved for one may lock you out of sign-up bonus promos in the future!

That said, if you really just plan to have a credit card collection, go ahead and submit your application through them.

I want to apply for more credit cards. Is there such a thing as too few or too many?

There’s really no right answer to this but ideally, one should have around 2 to 3 credit cards under different banks or network. That way, you would have a back-up in case of unexpected downtimes. You also get to access different promos at different times.

Is there a minimum amount before I can use my credit card to pay?

Technically, no but there are some merchants who have a minimum amount requirement when paying with credit cards. Regardless, I always use my credit card to pay no matter how small the amount is as long as the merchant accepts it. Got to get those points/rebates/miles!

I want to make a transaction that’s over my credit limit. What can I do?

Call your bank to request for a credit limit increase. This could be a temporary increase or a permanent increase. Just be honest about the reason.

Talk to the merchant if you can split your payment. You could either pay a portion with cash then the remainder with card or you can split up your bill across multiple cards.

My statement has arrived. How much do I pay and when?

Most important rule to follow is to pay in full on or before the due date. I usually pay 2 to 3 days before my due date to ensure that the payment gets reflected on time. This also gives me some leeway in case there’s an unexpected downtime from the account/wallet I’m paying with.

I plan to use my credit card abroad. Should I inform my bank?

While you may see a number of people telling you there’s no need to inform the bank, I highly recommend you still do so. This ensures that the bank does not block your card by mistake. Besides, it’s so much cheaper and easier to call the bank locally than while you are abroad. Similarly, there are some banks that allow you to set travel advisories on their online or mobile banking so be sure to check out those features as well.

I want to fly for free, maybe just pay the taxes and some fees. Is that possible?

To fly for free has always been my goal since getting my first credit card, which is why my usage has always been built around earning the maximum amount of miles whenever I can. Here’s a more in depth guide on how you can do this.

And that’s it for the FAQs for now! I’ll continue adding to this as often as I can so feel free to leave your questions below!