Responsible use of credit card builds good credit standing

Responsible use of credit card builds good credit standing
SUSTAINABILITY. Ma. Nannette Regala, senior vice president and Consumer Banking Group Marketing head at BDO Unibank shows off the new BDO ShopMore Mastercards which are made from recycled plastic. KATLENE O. CACHO-LAUREJAS

A BANK official urged for the responsible use of credit cards, especially among young individuals, as it is a key way to establish good credit standing.

“With young people now with so many wants, you have to make sure that early on in your careers or in work life, when you are accountable for credit card, you keep your credit card in good standing because anything that goes wrong with it is in your record,” said Ma. Nannette Regala, senior vice president and Consumer Banking Group Marketing Head at BDO Unibank, in an interview.

“And with everything digital, all banks know whether you are past due… and that stays on for a long time. If you want to have loans later on, like housing or auto loans, you’ve got to make sure you are responsible and spend within your means,” she added.

Banks have been aggressively promoting flexible payment options like buy-now-pay-later and zero-percent installment plans. However, Regala advised against consistently making only minimum payments, as this is not financially prudent.

“Pay for more than the minimum. If your bonus comes, pay even more. So that, you get rid of the balance right away,” she said.

Regala said that not all young people are irresponsible credit card users; many are responsible. She noted that credit cards can be a valuable tool for young adults to establish credit and build a strong financial foundation.

She emphasized the crucial role of parents, particularly those who have already introduced their children to credit card usage. By providing access to credit cards with low limits, parents can help their children avoid the pitfalls of overspending.

Regala was in Cebu to relaunch the BDO ShopMore Mastercard at SM Seaside City Cebu on June 21, 2024, in celebration of the card’s 20th anniversary.

Regala and her team introduced the new BDO ShopMore Mastercards which are now made from recycled plastic.

Made of recycled plastic

BDO Unibank said it upholds its commitment to sustainability with BDO ShopMore Mastercard, the first BDO credit card made entirely from 100 percent recycled plastic. This initiative aligns with the bank’s efforts to introduce environmentally friendly products and services.

Using recycled plastic to manufacture BDO ShopMore Mastercard is a sustainable solution to lowering energy consumption and plastic waste. By repurposing plastic waste from packaging and printing industries instead of using brand-new PVC material, BDO reduces its environmental impact by lessening the demand for new plastic production.

“We consider it our responsibility to integrate sustainability principles in our decision-making and business operations. As we continue with our sustainability journey, we will continue finding ways to go green, lessen our impact on the planet, and offer choices that will help our clients do the same,” the bank said. / KOC

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