Seven tips for buying home goods and appliances with your credit card
If a Filipino shopper from 30 years ago time-traveled to the present day, almost everything would be familiar. However, they’re likely to be astounded at just how much daily shopping habits have changed. They might be surprised at just how much online shopping has taken off, and they may also be amazed at how many present-day Filipinos own credit cards.
Once seen as a luxury, credit cards are now becoming a necessity for navigating the digitally transformed shopping experiences of today. Though our time traveler would have understood the concept of paying for home goods with plastic at a high-end shopping mall, they might not even realize that they no longer needed to leave their home or deal with shady dealers to get virtually any furniture piece or appliance they need.
With the near-universal online and offline acceptance of cashless transactions, finding the best credit card for online shopping Philippines-based shoppers is more important than ever. The thriving market for cashless payments has seen healthy competition bloom among card issuers, all of whom are now offering an assortment of rewards, cashback, and fringe benefits that make big-ticket purchases more manageable.
However, to truly maximize these benefits, you’ll have to use your credit card wisely—especially when shopping for high-value home goods and appliances. Try these practical pointers when you buy big-ticket items with your credit card.
1) Choose a cashback or rewards-based credit card
A credit card that specifically offers cashback or reward points for home goods and appliance purchases will be ideal. Credit cards tied to shopping clubs may offer these kinds of cards, so it’s worth looking them up if you don’t have a credit card yet.
Before committing however, check if your chosen card does give you benefits for appliances or home goods. Cashback cards, in particular, do not always return cash for all kinds of purchases, depending on the issuer’s terms and conditions. In general, you want a card that gives you cashback or other rewards for daily shopping as well as big purchases so that you can max out your benefits.
2) Don’t buy without a budget
Credit cards make it trivially easy to spend beyond your means. To avoid getting sucked into a debt spiral, always set a budget and stick with it, not just with big ticket appliance purchases, but everyday groceries and expenses as well. Try to grow out of the habit of making impulse purchases or, better yet, learn to budget for the better things in life so you won’t stress out when your next bill comes along.
3) Make it a habit to clear your monthly balance
Carrying a balance on your credit card can lead to interest charges, making your appliance and home goods purchases significantly more expensive. Not only do you have to contend with interest payments, but you’ll also lose out on your card’s cashback and rewards. If full payment isn’t possible, at least pay more than the minimum amount required so you can reduce your burden and maintain a good credit score.
4) Use a card that’s widely recognized
A credit card supported by VISA or MasterCard will enable you to buy the home goods you want from millions of stores and online merchants all over the world. If you, like many other Filipinos, are planning to take an overseas trip, a more widely accepted card will come in handy if you want to go on a home goods shopping spree.
5) Use your provider’s app to track your spending
Don’t wait for your monthly statements to come in the mail. Keep an eye on your credit card transactions by regularly using your bank’s mobile or desktop app. You’ll avoid unwanted surprises and get much more lead time to settle disputes and payments.
6) Stick to just one card, if possible
Using multiple credit cards to buy home essentials is a recipe for confusion and unexpected debt accumulation. Stick to one that offers the best benefits for your daily purchases that also works for occasional large expenses like appliances. Aside from simplifying management, sticking with just one card makes it that much easier to earn cashback and rewards.
7) Be smart with your credit limit
Before making a big purchase, you want to make sure that it is well within your credit limit. And we don’t mean just a few hundred pesos under, either. Ideally, the total value of your purchase should just be 30% of your allowed limit so that you can avoid a hit to your credit score. If you’ve had your credit card for a while, ask your issuer if they can raise your limit so that you have more breathing room for big-ticket purchases.
Use your card responsibly
Ultimately, the key takeaway is to be responsible with your card. The extended buying power provided by today’s credit cards is a huge responsibility. This is especially true if you plan to use your card for expensive purchases like premium home goods or gadgets.
Avoid the temptation to spend beyond your means, always pay on time, and a credit card like the Landers Cashback Everywhere Credit Card by Maya may be able to transform your life and enable you to enjoy a lovelier home.
