With mounting economic pressures and rising fraud risks, financial expert Kareen Mason Dennis is urging consumers to embrace credit cards and make the most of their benefits to strengthen their financial defences.

Mason Dennis, team lead in the Merchant Acquiring and Card Unit at JN Bank, shared that while many consumers hesitate to use credit cards out of fear of debt, they can offer substantial rewards without added costs, when managed responsibly.

“Credit cards are incredibly useful when used the right way. They give you flexibility, whether it’s making a necessary purchase or shopping online. They’re especially handy for travel, and they reduce the need to carry cash, which adds a layer of safety,” she said.

“A good tip when using credit cards is, if you wouldn’t spend your cash on it, don’t put it on your credit card unless you’re confident you can pay it off,” she added.

She emphasised that credit cards can act as a short-term emergency fund, offering immediate access to credit for unexpected expenses like car repairs or medical bills. However, she cautioned that while credit cards can help in this way, card users must ensure they repay the balance quickly to avoid accruing interest and delinquency.

“Paying your balance in full and on time each month is the best way to avoid late fees and interest,” she explained. We’ve noticed, however, that some customers delay payments while waiting to clear the full balance, even though they are allowed to make a minimum payment. Choosing not to pay anything at all can lead to late fees, potential over-limit charges, and a negative impact on your credit profile. We encourage customers to pay more than the minimum whenever possible, but at the very least, always pay at or above the minimum to avoid unnecessary fees and support better financial health.”

Mason Dennis noted that beyond the convenience, several credit cards today come loaded with incentives that can help cardholders save money.

“There are no fees when you use a credit card for purchases, which isn’t always the case with debit cards. There’s just one annual fee. Plus, you can earn reward points that you can redeem for cashback, travel, shopping vouchers, or discounts from select merchants just by using the card for everyday purchases,” she explained.

In addition, she noted that using a credit card can offer stronger protection than a debit card when making transactions. This, she explained, is because credit cards often come with built-in security features that can cover disputed charges and fraudulent transactions. She said, unlike debit cards, where fraudulent activity can immediately impact a consumer’s bank balance, credit card protections typically allow users to resolve issues without losing access to their cash, offering an added layer of security for both online and in-person purchases.

“When making certain purchases, especially online or with unfamiliar merchants, it’s safer to use a credit card rather than exposing the funds in your bank account. If there’s a fraudulent transaction or dispute, it’s usually easier and quicker to resolve without affecting your bank account directly,” she said.

Mason Dennis also emphasised that credit cards are a valuable tool for building credit history, which lenders assess when deciding whether to approve a loan and what interest rate to offer. She explained that a lack of credit history can make lenders hesitant, as they would have no track record to assess one’s borrowing behaviour. She said regular, responsible use of a credit card can help establish that history and improve a user’s chances of securing loans with favourable terms.

“Ultimately, I want people to know that a credit card can be a great financial tool. It can help you save, build credit, and manage unexpected costs. But it must be used responsibly. It’s not free money as some may think. It’s borrowed money that needs to be repaid. So always use it with a plan. Pay on time, spend within your means and monitor your statements,” she said.