Credit cards not free money, card issuers warn

Published November 17, 2020, 5:00 AM

by MB Business

The Credit Card Association of the Philippines (CCAP) has advised credit cardholders to manage their spending amid the pandemic, as the number of unpaid debts growing by almost threefold during the third quarter.

CCAP Executive Director Alex Ilagan said in a press statement that credit cards are not free money. Thus, cardholders should practice using it prudently to easily meet payment obligations and maintain a good credit standing.

He also underscored the importance of financial discipline by way of treating credit cards as a source of readily available fund during emergencies and a tool for convenience in making big purchases.

Ilagan shared that credit card companies have also implemented forebearance programs and flexible payment terms to help card customers repay debts, aside from the 60-day grace period from the Bayanihan to Recover as One (BARO) Act.

Meanwhile, Retail Banker International – Asia (RBI Asia) recently awarded financial institutions that employ commendable initiatives in line with its objective of finding solutions to the issues in the retail banking industry.

RCBC Bankard, the short-term loan facility of the Rizal Commercial Banking Corp. (RCBC), received the Best Credit Card Initiative in Asia for its efforts to provide access to credit to the uncarded segment.

During its 11th Annual Trailblazer Summit and Awards 2020, RCBC Bankard was recognized for its efforts to promote responsible credit spending for millennials through the use of budget management tools.

The RBI Asia also lauded the said card issuer for taking the right kind of risk to provide access to credit to more individuals.

It also received the Highly Commended – Best Social Media Marketing Campaign Award for its campaign that applies a geo-specific approach and considers the need for profiling.