7 Ways You’re Using Your Credit Card Wrong (And How to Fix It)

Are you making the most out of your credit card, or is it just another piece of plastic in your wallet? While credit cards can be powerful tools for building credit and earning rewards, many of us are unknowingly leaving benefits on the table. Let’s break down the most common mistakes people make and how to fix them to make your card work for you.

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If you’re someone who spends most of their money on groceries, bills, or gas—but your credit card rewards are all geared towards travel points, then you're missing out. It’s like using a hammer when you need a screwdriver. If your card rewards don’t align with where your money actually goes, you’re not maximizing your spending.

Cheat Tip: Look for a credit card that rewards the categories you spend the most on. For example, cards that offer cashback on bills or groceries, or fuel discounts. Finmerkado's Credit Card Comparison can help you find the right one for your habits.

Quick Fix: Switch to a category-based rewards card. These cards focus on areas like groceries, bills, and dining, where you’re already spending.

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If you're paying ₱1,500 to ₱5,000 annually for a credit card that you barely use, you're throwing money away. There are plenty of options out there without hefty fees—especially if you don’t maximize your current card's rewards.

Cheat Tip: Find a card with no annual fee or one where the rewards or benefits easily outweigh the cost. Compare Credit Cards at Finmerkado to find an option that gives you value.

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Carrying a balance on a high-interest credit card? That’s a recipe for financial stress. If you can’t pay your balance off in full every month, you could be racking up significant interest charges. And if you’re only paying the minimum, it could take you years to pay off that balance.

Cheat Tip: Consider switching to a low-interest or balance transfer card to help you manage debt more effectively and save on interest. Finmerkado’s Personal Loan Comparison might also help if you need a larger sum to pay off existing debt.

Pro Tip: Never use a rewards card for emergencies if you can’t pay in full monthly—use a low-interest card instead.

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Many credit cards offer massive perks, like waived fees, bonus points, or cashback, just for signing up. Yet, most people miss these opportunities simply because they don’t compare offers.

Cheat Tip: Always look for sign-up bonuses before choosing a card. These could make your next card much more rewarding.

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You walk into a bank, and they offer you a card. But did you check if it’s the best one for you? Too many people settle for whatever the bank offers first without considering what might suit their lifestyle better.

Cheat Tip: Use a comparison tool (like Finmerkado’s) to find the best card tailored to your income, spending habits, and preferences.

6. You’re Not Using Credit to Your Advantage

The key to a good credit card experience is not just borrowing money—it's using your card to earn rewards, build credit, and avoid interest fees. Too many people treat their cards as a short-term loan and don’t leverage the long-term benefits.

Cheat Tip: Use your credit card to build your credit score. Pay in full, earn rewards, and avoid interest—use the card to your advantage, not as a crutch.

If you’ve had your credit card for a while but your income has increased, it might be time to upgrade. Entry-level cards typically come with lower credit limits and fewer perks, meaning you're not getting the full value.

Cheat Tip: Consider upgrading to a mid-tier or premium card for higher limits and better perks. Explore UnionBank Credit Cards for Self-Employed for some great options tailored to higher earners or freelancers.

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Final Word: Don't Settle for Just Any Card

If you’re unsure whether your card is right for you, chances are it’s not. The right credit card should align with your lifestyle, help you save money, and provide rewards for your spending. Don't settle—compare, switch, and get the most out of your credit card.

Finmerkado gives you options designed to match your life, not fight it. See What Cards You Should Be Using

Want more tips? Comment “CHEAT SHEET” below to get a download link via auto-reply!

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