Expanding incomes, healthy consumer demand, and digital transformation have all helped convince Philippine lenders to offer an ever-expanding range of generous borrowing options to the domestic market. However, even with the proliferation of new ways to borrow, the dependable credit card remains one of the most popular.
Today’s credit cards have evolved to keep pace with Filipinos’ shifting consumer behaviors. Consumers who are new to credit will find cashback credit cards a compelling option as these provide cashback rebates even as they expand people’s buying power. The Maya Landers Cashback Everywhere Credit Card is especially powerful, offering up to 5% cashback at Landers, 2% on dining spends, and 1% on all other purchases.* It also features a handy credit card cash advance feature that lets users withdraw physical cash from any Visa-supported ATM, worldwide.
Regardless of your preferred ways to borrow, developing responsible habits is essential, not just to avoid dreaded debt traps but to build your credit history, enabling you to enjoy a wider selection of financial products in the future. Here’s how you can do just that:
1. Explore Your Credit Card or Loan’s Features
Before you commit to any loan product—credit cards included—you must take time to look up what it is being offered and what the real tradeoffs are. For instance, the Landers Cashback Everywhere Credit Card also functions as a membership card to the exclusive Landers shopping club, but it also gives you benefits for qualified purchases outside of Landers superstores. Notably, you can boost your baseline Landers shopping cashback from 3% to 4% or even 5% by spending PHP 20,000 or PHP 50,000 in a single month, respectively.
As mentioned, the Landers Cashback Everywhere Credit Card also includes a cash advance feature that you can use to withdraw from any compatible Visa ATM, even overseas. The fees and interest associated with cash advances are separate from regular credit card borrowings, which means that you’ll want to explore the full implications before enjoying this feature. Other loan products will have similar complexities so be sure to study any contracts so that you don’t end up with obligations that negatively impact your long-term finances.
2. If You Use a Credit Card, Always Pay Your Balance in Full Each Cycle
If you have a credit card, you’ll want to pay off your balance in full before the next cycle. There’s some bad advice out there about paying just the minimum but carrying a balance from month to month is almost certainly going to be disadvantageous, especially if you’re building up your finances. Carrying a balance leads to finance and interest charges that eat into your rewards and weaken your credit rating. If you can’t pay off something within the current cycle, consider saving up, first.
3. Choose a Cashback Card and Use It for Essentials
Using a cashback card that rewards your natural shopping behaviors and preferences makes much more sense than just using cash. This is especially true if your card accommodates everyday expenses like groceries and dining. If your card saves you cash on things you would have bought anyway, feel free to use it.
4. Keep Accurate Track Of Your Spending and Due Dates
Keeping tabs on your transactions and obligations gives you a realistic picture of how much room you have left in your finances, making it easier to save and cut back on unnecessary spending. Just as importantly, you’ll avoid overextending yourself and damaging your credit history.
Use a spreadsheet file or a notebook to write down all your expenses and review them regularly. In time, you’ll find ways to streamline your spending before it gets out of hand, leaving you with enough positive income to cover your loan payments before they’re due. If you’re a Maya user, be sure to check the Maya App for a more accurate picture of your spending.
5. Know When to Use Cash Advances
Despite the world’s continuing digital transformation, real cash remains king in many situations, both in the Philippines and overseas. For that reason, having a cash advance feature on your credit card is a must-have, even if you don’t plan on using it regularly.
If you do withdraw a cash advance though, be warned. Cash advances always come with higher fees and interest rates compared to your normal credit card borrowings, reflecting the risk your card provider takes by giving you cash with no questions asked. Aim to pay off any cash advances in full within your current cycle to avoid the cost and long-term implications of compounding interest.
6. Learn the Basics of Maintaining a Good Credit Score
The great thing about responsible credit card use is that the best practices you learn are directly transferable to other loan types. So long as you stick with safe, mainstream loan products, timely and complete payments and low credit utilization (around 30% or less of your allowed limit) will slowly build a positive credit history. Those basics may seem restrictive when you’re just starting your credit history but, given time, they will increase your chances of qualifying for better credit terms in the future.
Save More and Build Credit with the Landers Cashback Everywhere Credit Card
If you’re planning to increase your savings and strengthen your credit history, few other options can compete with the Landers Cashback Everywhere Credit Card. But whatever cards or loan products you choose, becoming a responsible borrower will always work in your favor. When you’re ready to save more and build a stronger credit rating, apply for the Landers Cashback Everywhere Credit Card through the Maya app.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
