Laying down the cards

AS THE WORLD becomes more technologically advanced each passing day, everything and everyone rides the tech-wave with speed. Mobile phones allow faster communication among people. Satellite systems provide a stream of entertainment directly to homes. The web becomes a crystal ball of information and an open sea of commerce.

So many things can now be easily bought through the web like books, CDs, airline tickets, hotel accommodation, and a lot more. With this, the only convenient companion to have beside your computer is your credit card. Not only is the credit card convenient for online purchases, it is also a hassle-free way to bring along purchasing power without the physical form of cash itself. The use of cards, however, should not be misconstrued as additional purchasing power. It simply makes your life easier by making your physical wallet flatter without bills and coins.

Using credit cards without the intention of paying purchases in full will subject you to interest based on your outstanding balance. If not monitored properly, this might lead to ballooning obligations to the credit card company. When applying for a credit card, therefore, choose the card company that offers the lowest APR or annual percentage rate. This will be advantageous to you when you buy an item that you want to pay on a staggered basis. Some card companies offer a free-interest period for a couple of months. Take advantage of this when you have something that you want to pay for a longer term, say six months. You can always surrender your card when the free period is over and apply with another card company.

The proliferation of card companies in the market has also resulted to cut-throat competition in waiving annual membership dues. Be sure to ask for a waiver of membership dues even for just the first year or maybe haggle to half the rate. If not, there’s always another card company down the street to offer you one.

As the frequency of your usage increases over time, you should take precautions against being a victim of fraud. For all the convenience that technology can offer, there is always a 21st century Bonnie-and-Clyde lurking somewhere and making schemes of entrapment.

The basic, yet most important thing that you should remember is to affix your signature at the back of your card. You should also keep an eye where the store merchant swipes your card. Be sure that he’s not using an unusual machine that might otherwise copy details of your card for the use of fraudsters.

Never leave your card slips anywhere. As soon as you verify purchases against your credit card statement, tear your card slips in such a way that your card details cannot be distinguishable by any schemers who get clues from other people’s trash cans.

Purchase items on the internet only from vendors who are reputable. They should also have a secure-server guarantee visibly indicated in their web page. And never give the password of your account settings in the internet vendor to anyone. The same goes with your credit card PIN number. Keep it in a safe place or memorize it by heart.

Cards should expedite things to work for you, not against you. As with anything else it is wise to stop, look, listen to your card, hear what it’s saying – buy and pay – keep fat interest away. *

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Renzi is a graduate of Economics with a Masters Degree in Business Administration from the University of St. La Salle. While working full-time in the Trust & Investments Division of one of the 10 largest banks in the Philippines, she dabbles into writing and does mountain biking as her weekend hobby. You may email the author at renzijuarez@philippinestoday.net.