• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Thrifty Hustler

Hustling Towards Financial Independence

  • Home
    • About
    • Contact
  • Start Here
  • Make Money
  • Save Money
  • Credit Cards
  • Crypto
  • Recommendations
  • Blogging
  • Start a Blog
Home » Credit Cards » 10 Things I Wish I Knew Before I Applied for my First Credit Card

10 Things I Wish I Knew Before I Applied for my First Credit Card

April 21, 2020 by Thrifty Hustler  

Note to Readers: This site may contain affiliate links to products and services providers such as Amazon, Involve Asia and others. We may receive a commission for purchases made through these links at no extra cost to you.

I was 22 when I got my first credit card. A colleague from my previous job referred me to a credit card agent. As soon as I got the documents, I filled up the application form and submitted all the requirements to the agent. After a week or two, I received my first ever credit card.

My friend was so excited about telling me that I could buy a lot of things with my first credit card. She told me that I could just pay my purchases on an installment basis.

I was naive, financially illiterate, and very dumb! My younger self didn’t bother reading the fine prints and just swiped to my heart’s content.

And to make matters worst, I also just paid the minimum amount due monthly.

I bought a new TV. And I also booked a couple of flights and treated my friends to nice restaurants until I maxed out my first credit card.

I just continued paying the minimum amount due until I resigned from that job. And since I was unemployed for some time, I started reading about the bills that I received from the bank and shocked by the total amount that I owe them and the interest that I was paying.

It was barely making a dent and it seems that the amount that I owe them was not getting smaller.

Again I was young, naive, financially illiterate, and extremely dumb and lazy to read/research about the things that I was getting myself unto.

Luckily, my credit limit was not that high and I was able to pay that off once I got a new job. Paying everything off was my main priority and I did not purchase anything until it got cleared.

I cut my card and it took me a couple of years before I applied for another credit card.

I got traumatized by my own laziness and stupidity which cost me a huge chunk of money that I could have used for something else or better yet – money that I could have saved.

You don’t have to go thru the same mistakes that I have been through.

Here are the ten things I wish I had known before I applied for my first credit card:

First Credit Card

Table of Contents

  • Read the Terms & Conditions
  • Interest Fees Can Be Avoided
  • You Can Pay the Whole Amount
  • Different Credit Cards Have Different Sets of Fee
  • Annual Membership Fees Can Be Avoided Too
  • Credit Cards are not Evil
  • You Can Use Your Credit Card as a Financial Leverage
  • There are also Freebies and Tons of Discounts
  • Credit Card Fraud is a Real Thing
  • I’ll leave number 10 to you guys.

Read the Terms & Conditions

This would not have happened if I read the attached papers and familiarized myself with the terms and conditions of the credit card. I would have learned the interest rates, penalty rates, etc.

Doing this step alone could have saved me from being embarrassed to myself. And of course, I could have saved all that money that I ended up paying the bank.

This is one of the lessons in my life that I definitely learned in a hard and costly way.

Now, every time I sign up for a new card, investment, etc, I make sure that I read everything given to me.

If there’s something that I do not understand, then I ask someone I know who has more knowledge than me for whatever I was applying for.

And oftentimes, I also check Google.

Interest Fees Can Be Avoided

If only I knew this, then I wouldn’t have swiped for the things that I know I wouldn’t be able to afford to pay on the due date or I could have opted to get the 0% Installment promos available during those times.

The computation for the interest is clearly stated in all documents included in the first letter that you get from the credit card companies. It’s also available on their websites so you could check it before you apply for any credit card.

You Can Pay the Whole Amount

I know now that paying just the minimum due will get me into a huge debt with the credit card companies.

You don’t have to be subjected to the interest fees if you pay the whole amount that you owe every due date. Since I know this now, I don’t use my card to purchase anything that I know I could not afford to pay when the due date comes.

Now, I also don’t subscribe anymore to the idea of purchasing items that I could not pay outright. Even if it’s eligible to the usual o% Interest Installment promos of my card. This way, I keep myself debt-free and worry-free at the same time.

Different Credit Cards Have Different Sets of Fee

Before applying for any credit cards, you should shop around first to see which credit card offers the lowest interest rate.

We all know that sometimes, due to some unforeseen circumstances, we will be swiping our cards and won’t be able to pay it outright especially during personal emergency situations.

Annual Membership Fees Can Be Avoided Too

I used to pay the annual membership fee every time it appears on my monthly bill. I didn’t bother researching ways on how to avoid paying it. Later did I know that the annual membership fee can also be avoided. And all it takes is a quick phone call.

Most of my friends just call their credit card companies and ask to waive their annual membership fees. Although bear in mind that it may or may not always be waived depending on the circumstances.

Some of my cards will waive the membership fee without any questions asked, some cards have a minimum spend requirement before they could waive the fees, and sometimes there are seasonal promotions wherein they waive the annual fee.

And also, know that there are credit cards that offer free annual fees for life.

Credit Cards are not Evil

Credit cards are not evil and they can be your best bud if you use them correctly.

I have amassed points and miles that I was able to convert later on to free flights. There are numerous tips and tricks available online on how you could maximize the benefits of owning a credit card and I’ll be writing a separate post about it soon.

You Can Use Your Credit Card as a Financial Leverage

Citibank has this Click for Cash/Call for Cash (I think now it’s called Citi Speed Cash) service wherein you can loan a particular amount of money for fixed interest and it will be billed to you on a monthly basis.

The interest then was so low. I did use this product to pay for the downpayment of my condo unit. I find the interest back then way lower than what was offered to me by other banks. This product is different from its cash advance facility.

I also recently made another loan to finance another small business project of mine.

Recently, I noticed that other credit card companies are offering similar products. The process is hassle-free and did not require me to submit any additional documents.

And the money was also transferred to my account in just a few days. If you’re interested in availing of this product, be sure to check out your bank’s website.

You can also call their customer services hotline to learn more about the details.

Related Posts:

  • Citi PremierMiles Credit Card Review
  • BPI Amore Visa Credit Card Review
  • Visa Infinite Credit Cards in the Philippines

There are also Freebies and Tons of Discounts

With the increasing competition as years go by, credit cards have been stepping up in improving their service offerings to their customers.

Almost every credit card nowadays could give you discounts for various hotels and restaurants for as much as 50%.

Some credit cards will even give you freebies for every X amount of purchase and so on.

My favorite cards are travel credit cards that give me free access to airport lounges. For someone who loves to travel, this is definitely a great perk that I really enjoy having.

Related Posts:

  • Best Cashback Credit Cards in the Philippines
  • Co-Branded Credit Cards for Shopping – Philippines
  • Best Credit Cards for Charity Donations in the Philippines

Credit Card Fraud is a Real Thing

Early last year I received a text message that my credit card was suspended due to an allegedly fraudulent transaction. I immediately checked my account online and saw that there’s a very small amount transferred to a charity overseas.

The charity organization is legit. The amount was really small to be bothered with.

But the problem was, I did not make that transaction.

I immediately requested my card to be canceled and requested a card replacement at the same time.

Thankfully, they caught this fraudulent transaction right away.

After doing some research online, I found out that scams like this exist. Usually, the fraudsters will make a very small donation to a charity. And since it’s too small to bother anyone with, some people didn’t bother checking it anymore. Then, after a given period of time, they will use your card to purchase high-ticket items.

It seems that the fraudsters are using that donation transaction to gauge if your card is active and if the owner frequently checks his/her account.

Since this is a long topic, I will also write a separate post about this.

Stay vigilant in checking your credit card bills and always check if all the transactions were indeed made by you.

If you have any inkling or if your guts tell you that your card information may have been compromised at some point, then do not hesitate to call your bank to replace your card.

Related Posts:

  • How to Keep Your Credit Card Safe – 10 Important Guidelines
  • 8 Ways to Maximize Your Credit Card Benefits
  • Should You Get a Credit Card or Not?
Ten Things I Wish I Knew Before I Applied for my First Credit Card Click To Tweet

I’ll leave number 10 to you guys.

Feel free to add your tips and suggestions in the comment section below.

“first

Thank you for visiting Thrifty Hustler: I hope you find value in reading my blog posts. If you liked and enjoyed this article please support this blog by sharing it! You can also follow me on Facebook, Twitter, Pinterest, and Instagram or you can get my updates straight to your email by subscribing. 

If you're new here. please check my Start Here page to help you with the navigation. You can also check out my Recommendations page if you wish to see the products and services that I use and that I recommend. Most of the links on that page are my affiliate links and I will earn some commission at no extra cost to you if you use any of my affiliate links. Thank you in advance!

And also, please be advised that posts here are based on my own opinion and personal experience and should not be taken as a recommendation to buy and sell investments, products, services, etc. Please do your own due diligence before making any financial decisions or before purchasing from any links from this blog. Please see my full disclosure here.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Thrifty Facebok PageThrifty Hustler TwitterThrifty Hustler PinterestThrifty Hustler InstagramThrifty Hustler FeedsThrifty Hustler Contact Page

Personal Finance Blogs

Camp Fire Finance

Modest Money Financial Blogs

Archives

Copyright Thrifty Hustler© 2023 | Contact | Disclaimer | Privacy Policy |