Choosing to live a cashless life is growing in popularity, especially with the rapid shift towards digital transactions. Through the different modes of online payment, many Filipinos find that going cashless is more convenient and hassle-free than transacting in cash.
But going cashless doesn’t mean you use your credit card in place of paying with bills and coins. There is a way to maximize your credit card use so that you can go cashless and save money in the process.
Do credit cards even help you save money in the first place?
Credit cards can help you save money. While there's a common misconception that credit cards lead to overspending, when used responsibly, they offer significant financial benefits.
How to save money using a credit card
When using your credit card, the two basic rules to follow to avoid falling into debt are:
- Charge only what you can afford to pay.
- Pay your balance in full every month and on time.
With these two guiding credit card management principles, swiping your credit card responsibly can be the key to living a cashless life. Here are other tips you can follow to save money while using your credit card.
Enjoy one-time welcome gift with a new credit card
Qualifying for a new credit card is a sign of having excellent credit reports or payment history.
A successful credit card application can include spending bonuses and other welcome gifts upon reaching a required spend in the first several months. These welcome gifts can come in the form of purchase discounts, increased credit limits, rewards like redeemable points and travel miles, gift cards, and more.
Compared to the usual checking account and debit card that don’t offer as many perks, a credit card’s bonuses allow you to reap different rewards in the future, such as rebates, credit back or cash back, physical gifts from your provider’s catalog, or electronic gift certificates.
Collect reward points
Every time you use your Philippine credit card, you earn a point for every peso you spend. There are credit card rewards programs that focus on empowering the use of credit cards in restaurants, grocery shopping stores, or gasoline stations.
These points are often redeemable and can be spent on travel purchases, gift cards, or different kinds of merchandise. Save more money by accumulating these rewards and using them later on instead of paying cash.
To maximize this opportunity, find a credit card with features that suit your lifestyle and cater to your specific needs so you can earn points faster.
Spend more, travel more
Another popular credit card benefit is earning frequent flyer miles. Similar to redeemable rewards points, credit card providers allow you to convert your reward points to miles per peso spent in every purchase. Depending on the type of plane ticket bought with points, there are frequent flyer cards that can make the purchase even more valuable.
To enjoy a world-class vacation, be sure to check the mechanics and requirements, such as miles-to-points conversion, and make the most of every purchase.
Purchase protection
Some credit cards offer purchase protection that covers items you've bought with your card against theft, loss, or damage, regardless of where you used your credit card (i.e., whether through a physical or online store.) This can save you money in the event of unexpected incidents. For example, if your newly purchased laptop is stolen, your credit card's purchase protection may reimburse you for the cost of the laptop, up to a certain limit. If your purchased item is damaged due to a covered event, such as a natural disaster or accidental damage, the purchase protection may cover the cost of repairs or replacement.
Forming new saving habits by going cashless
We’re in a digital age where almost everything can be paid using your credit card – from rent to online purchases, groceries, bills, and utilities. Payments can now be made straight to Metrobank credit card accounts.
Use your credit card with a saving mindset by collecting points, redeeming rewards, cash-back promos, and spending discounts and bonuses. Imagine a lifestyle where every swipe saves you more money, as opposed to paying in cash.
Embracing a cashless future: A smart financial decision
Embracing a cashless lifestyle using credit cards can be a strategic move towards developing better money habits. By understanding and leveraging the benefits offered by credit cards, such as rewards points, travel miles, purchase protection, and exclusive discounts, you can not only manage your cash flow but also “save” money.
It’s important to remember that responsible credit card usage is key to maximizing these benefits. You can practice dealing with your finances responsibly by charging only what you can afford to pay and paying your balance in full each month.
So, why not explore the possibilities of a cashless life and discover how credit cards can be a valuable tool in your financial toolkit?
Apply for a Metrobank credit card today by checking out the application requirements right here.
