5 Most Common Credit Card Misconceptions, Debunked

Thinking of getting a credit card? Using your credit card wisely actually helps keep your finances in great shape.

We know there are a lot of myths out there, so we spoke with four bankers to help separate fact from fiction and uncover how credit cards can help you reach your financial goals.

Myth 1: Getting a credit card means you’ll drown in debt.

Credit cards are just a tool, neither good nor bad on their own. It all depends on how you use them. Jacques Jimeno, Acquisition Officer, assured that as long as you stick to your budget – prioritizing your needs such as food, groceries, and utilities, and pay your credit card bill on time, you don’t have to worry about being charged interest and accruing debt. You’re also given some extra time before your bill’s due date, so you can manage your finances wisely

Myth 2: Credit cards are only for people who already have money.

Being a credit card holder is a responsibility, so the application process can get rigorous. The assessment covers not just how much money you have, but also if you’re a responsible payer. “Don’t be intimidated by this,” Dyosa Aranza, Brand and Customer Experience Officer, said. “You always have a chance so long as you have a good track record.”

There are also credit card programs designed specifically for first-time holders, such as BPI’s Express Start. Applicants don’t have to provide income documents and the credit limit will come from what you deposit — perfect for fresh grads or people who feel they’re not approvable.

Myth 3: All credit cards are the same, so having one is enough.

Sue Tangalin, Virtual Loan Advisor, shared that she uses her credit cards for their points since each card has its own benefits and reward systems. “Having multiple credit cards can help you if you have specific goals,” Anela Constantino, Marketing Officer at BPI Institutional Banking, added. If you’re an avid traveler, the BPI Platinum Rewards Card has exclusive travel benefits like year-round 0% installment conversion for airline spend. The Amore Cashback Card maximizes your points when you do your grocery shopping. For frequent drivers, the Petron BPI Card earns you rebates on fuel purchases at Petron stations. There’s a card for every lifestyle, it depends on what’s best for you.

Myth 4: You’re more likely to be a victim of fraud when you have a credit card.

Don’t worry, banks employ robust security measures to protect you from unauthorized purchases. But as Dyosa reminds us, “There’s always a risk in everything we do and avail of, but so long as we are diligent and vigilant in terms of watching these transactions, I think we’re good to go.” Banks also regularly send emails and text reminders on how to avoid scams – remember to keep your credit card details private and never give your OTPs to other people.

Myth 5: Paying the annual fee is a waste of money.

It’s not a waste when you get to enjoy the perks! Credit cards are designed to build a good relationship with your bank, so if you plan to maintain a good credit score, paying your annual fees would help this goal. Anela also pointed out that some credit cards don’t charge the annual fee for the first year. “This is a period when you can assess if you’re going to use your credit card or not.” 

When credit cards are used responsibly, they can be a game-changer for your financial future. The key is to stay informed and make responsible choices — so you can use credit cards to your advantage rather than having them control you. You got this!

For more financial tips and insights, visit NEXT by BPI Preferred’s The Program.