Condo Tips: Pros and Cons of Credit Cards

Nov 29, 2021

As Covid-19 arises, the Philippines showed the most remarkable change in e-cash adaptation during the pandemic. A survey conducted by a research agency showed that before the pandemic, the Filipino working class had the lowest use of digital payment methods at 63% among 10 countries in the Asia-Pacific region that were surveyed. The average went up from 15% to 37% when the pandemic kicked in.

One of the most used modes of digital payment nowadays is credit card payments. People especially the millennials have been enticed to online shopping since the pandemic started. The lockdowns helped e-commerce to rise significantly. People started to buy everything online and call it “budol”. From food to groceries, to apparel, to newly discovered things that would help them in their work from home setup. Even home furnishings were in demand especially when home and condo design became a trend on online platforms. One of the advantages of credit cards is fraud detection, especially for online transactions. If you get approved for a BDO, BPI, or Metrobank credit card, you can avail of the issuer’s virtual card. This means you may use a separate card just for internet shopping, protecting you from online shopping scams, as it has a different card number from your regular card.

As convenient as it sounds, it’s always good to know what the pros and cons are. A credit card can be an asset, but if not handled carefully it can become a liability, especially if some find it so convenient and easy to use that they lose control of their spending. Here are some of the pros and cons of credit cards that can help interested or new users get started.

Advantages of Credit Cards

Convenience

Not having to worry about how much cash is on hand. Availing of cash advances when needed. Be aware that cash advances may have a higher interest rate, having a realistic plan to pay back those advances is very important.

Credit History

Using a line of credit by making purchases and paying them off on time can result in a good credit rating from credit rating agencies – making it easy to apply for loans and receive good interest rates in the future.

Purchase Protection

Credit card may step in to help if there’s a need for a charge dispute or return a defective product and request for refund. It gives the user the right to withhold the payment for billing errors if the card issuer’s investigation turns up evidence not against the cardholder.

Rewards for use

Some cards can earn rewards that can be used later for cash, gift cards, or other merchandise. More frequent use of credit cards, more rewards that can be earned.

Security Features

Credit cards are more secure than debit cards and other traditional checking methods. If someone were to access your checking account, they could drain it. The cardholder will have to wait for the bank to process the fraud report to replace the funds. On the other hand, when a credit card is stolen, the card issuer will have to clear up the fraud without the cardholder being cleaned-out in the process. In addition, if the credit card gets lost, the card issuer can be contacted immediately to block the card and prevent unauthorized use.

Disadvantages of Credit Cards

Fees

Some accounts have annual fees. May also charge fees for cash advances along with high-interest rates. The cardholder may end up spending more on interest and fees than earning on discounts and cashbacks. Make sure the benefits outweigh the costs.

Monthly scrutiny

Credit cards are a target for scammers. Cardholders might want to review their monthly bill to confirm the accuracy of their purchases. Make sure that there aren’t any signs of fraudulent use of their card.

Temptation

As it is much easy and convenient to use, cardholders may be drawn to overspending especially if they aren’t mindful of their expenses. Credit card debt is a vicious cycle to get into and tough to get out of it. This can be avoided by not charging more than you can afford to pay off, and by paying off on time.

Interest charges

This can happen when something has been purchased and not paid off on time. The cardholder will end up paying not only the purchase price but also the interest charge on that item. Carrying a balance will end up costing the cardholder more in the future.

The pandemic sparked the fast swing to digital payments of transactions. People have now embraced e-payment platforms for buying and. People working from home and people on condo living have found the existence of online delivery and online shopping very convenient in their daily lives, especially during the lockdowns.

Vista Residences, being one of the Philippines' top-tier condominium builders, has catered to the demands of young professionals, students, new families, and businessmen in terms of convenience, security, comfort, and access to practically everything they require in their daily lives. Developing high-end leisure condominium buildings with hotel amenities and services, allowing residents to live comfortably in the heart of the city.

Vista Residences offers ready-for-occupancy condominiums located in prime locations in Manila and other cities in the country’s Central Business Districts wherein micro, small and medium enterprises are in proximity and are now offering cashless and digital payments.

Vista Residences has expanded the availability of its mid and high-rise towers in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and Cagayan De Oro. Following years of promising growth, Vista Residences is preparing to launch seven new projects nationwide. These projects include Morrison Heights (near UST-Manila), Sky Arts Manila Tower 2 (near Robinsons Place Manila), Encore (near NAIA), Vista Shaw Tower 2 (Ortigas), and the Courtyard – Katherine Building (Taguig). Future homeowners interested in easy access to numerous commercial districts, restaurants, and recreational places should keep an eye on these upcoming projects.

Vista Residences, with a range of strategic condominium locations, undoubtedly provides convenience to residents, especially to the workforce and student body, in this new normal era, reducing the risk of commuting and time of exposure to many people. 

For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.  

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