WAYS TO BE DEBT-FREE: Why Do You Need At Least One Credit Card?

source: http://howtocleanupyourcredit.org
Days ago I submitted an application to raise my credit card limit with my Bank of Guam Visa  Card. Luckily they gave me a 150% increase of my current credit limit citing that I have a very high credit score. 

Now in the first place why did I requested an increase of my credit limit?

source: http://ktrmurali.wordpress.com

But first let me warn those who are still working on their credit card debts. If you still have credit card debts I don’t recommend you to ask your bank or card issuer to increase your credit limit but rather you should cut your credit card and start paying your credit card debts before your interest gets bigger than the principal.

I may or may not use he added allowance that I can “barrow” or leverage (link to post about leverage) for a month but still it is a must that I pay the entire balance of my credit card per statement. 
Credit cards could either be your friend or your worst nightmare. It is very useful in times of emergency in case you are out of cash and the nearest bank is a town away. Also having one credit card which you have used for an extended period of time builds your credit history and thus giving you a high credit score if you manage it well.

A high credit score is a must especially when you finally decide to borrow a big sum of money for projects/business you want to start or a needed capital for business expansion. 

Looking back at my experience when I first step on the island of Guam, it was a long wait before I got my credit card. Back in the Philippines I have a record of 5 credit cards that are all pre-approved. I was working back then in a top 1,000 company that is why credit card companies and banks just mail me a pre-approved credit card just waiting for my activation and of course my very first swipe.  
source: http://blog.quickanddirtytips.com
But in Guam they said I don’t have a credit history that is why they can’t grant my request. I applied to Citibank and another bank but I was denied even if I once had a Citibank credit card in the Philippines.
Good thing when I made my requested in Bank of Guam. I was given a means to have one, that is by opening an account and placing the desired credit limit to act as a deposit in case I don’t pay my credit card. From there, my swiping and bill payment days in Guam started till today when I finally have a credit history with a very high credit score.

By the way if you want to know your credit score you can ask the services of Experian, TransUnion, and Equifax in the US for a fee. 

Want to know your score for free? 
In the US there is a federal law which gives an individual a right to request a copy one’s credit score for free  once a year. To check yours, if you reside in the US, go to www.annualcreditreport.com and know your creditworthiness.

So always remember if you are financially free and capable of managing your finances get at least one credit card, if you are not barred by law from getting one, to establish your creditworthiness.

See all awesome STOCK REPORTS in PinoyInvestor! (size 375x192)

source: http://www.usa.canon.com
By the way I requested an increase of credit limit because of the rising cost and to buy that long dream of having a DSLR camera and a faster and lighter laptop. I got to reward myself once in awhile.
About the blogger

Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Check him out in Google+ Learn more about Louis and his financial freedom advocacy here.

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4 comments for “WAYS TO BE DEBT-FREE: Why Do You Need At Least One Credit Card?

  1. March 17, 2012 at 6:33 pm

    Kuya Louis, I was aiming for DSLR, too. You might want to consider Sony Nex. ^_^ ‘un din kc ang binili ko, after ako ma sales talk ng agent. (haha), well, credits to him, because he showed me both the specs of sony, nikon and canon. ^_^

  2. March 20, 2012 at 9:49 pm

    DSLR were are you? 🙂

    • Roni
      August 3, 2015 at 8:32 am

      what was the web address to check credit score for free annualcreditreport is just working for us citizens only. can you reply with the accurate website to go to I was searching all over the web already and not getting accurate site. thanks

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