Starting your financial journey doesn’t just involve earning your own income or opening a bank account. Beyond income and savings, among the most crucial personal finance concepts you need to be aware of as a young adult is credit. Credit refers to a formal agreement where a borrower promises to repay funds or resources lent by another party, usually with interest. Meanwhile, your credit standing reflects how reliably you repay and manage credit over time. Understanding these financial basics and cultivating healthy money habits can have a lasting influence on your financial well‑being and future opportunities.

Moreover, choosing the best credit card for beginners like yourself can help you start your journey toward financial health and security on the right foot. The Landers Cashback Everywhere Credit Card from Maya, for example, is a practical option for young Filipinos looking to build a good credit history as it offers convenience while rewarding cardholders with cashback rewards. Using the card responsibly—such as by focusing on routine purchases, paying bills on time, and keeping balances manageable—lets you establish a strong, consistent record, which is key to building a positive credit score.

In this article, we’ll explore how reinforcing solid financial habits as well as choosing the right financial tools can help you build a good credit standing.

Understand Credit and Why Good Credit Standing Matters

In essence, your credit standing refers to the trust that others place in your ability to borrow and repay. Furthermore, it reflects your reliability in managing that borrowed money. Whenever you use credit, whether for a small loan or a large purchase, repaying it on time builds a record of trust. Keeping this record clean is critical, since credit card application in the Philippines typically involves a credit evaluation, where banks check your credit history to help assess whether you are eligible for credit. That said, a strong credit standing can lead to easier approvals for both credit cards and loans, which can help you address urgent financial needs in case of emergencies or access opportunities that can lead to greater financial freedom, such as funding education or starting a business.

It’s important to note that your credit standing is shaped by how consistently you meet payment obligations and how you manage debt, as well as the length of your credit history. Even as a young adult with limited financial experience, you can establish a solid foundation by making thoughtful financial choices early on. Over time, these choices can show consistency and responsibility that signal to future lenders that you are a low-risk borrower.

Start with Creating Stability and Strong Financial Habits

Before you apply for a credit card, you should first work on your financial readiness. First-time credit card application in the Philippines involves ensuring your stability and responsibility as a borrower. For one, this means that banks will look into whether you have a steady source of income that can cover potential dues once you begin using your card. Beyond gainful employment, implementing simple money habits can help set you up for financial stability and support building a good credit standing. Start by keeping track of how much you earn, spend, and save each month so you can gain an idea of how credit can fit into your finances. Moreover, follow a budget and learn to live within your means so you can build the financial prudence needed to manage credit wisely.

Additionally, setting aside money each month for an emergency fund is another key habit that helps establish financial security. Having an emergency fund helps you avoid depending on credit in stressful situations, such as when unexpected expenses arise. Likewise, tracking purchases and keeping financial goals in sight supports mindful money use. Developing these habits early equips you to use credit more confidently and responsibly when the time comes to open your first credit account.

Choose a Beginner Credit Tool Thoughtfully

Choosing your first credit card is an important step, and it's worth taking your time to understand your options. As a beginner, you might consider a credit card that comes linked with services you might want to explore or already enjoy.

For example, if you’re already a Landers member who shops at Landers regularly, then Maya’s Landers Cashback Everywhere Credit Card might be the best starter card for you. This credit card from the #1 digital bank in the Philippines doubles as your Landers Superstore membership card and gives you up to 5% cashback at Landers, 2% on dining spends, and 1% on all other qualified transactions.* You can directly use these cashback points you accumulate to get discounts on your next Landers grocery haul, letting you save while you spend. Using your credit card to leverage exclusive deals from partner establishments and to get significant savings encourages consistent and responsible credit card use that contributes to your credit standing.

Once you get the hang of using a credit card, it might become tempting to apply for more cards. However, it’s important to avoid opening multiple accounts at once as this can increase your financial burden and lead to unnecessary credit checks, which may negatively affect your credit standing. As a young adult, your focus should be on using one account well so you can create a positive credit experience that can lay a strong foundation for your credit standing.

Use Credit Responsibly Every Month

Now that you have a credit account, the way you use it will shape your credit reputation. One of the most important habits all credit cardholders should develop early on is to make payments on time, every time. Timely payments are crucial since even a single missed payment can stay on your record and hurt your standing for years. Similarly, it’s wise to pay your balance in full each month if you can, as this prevents interest from piling up and keeps your spending in check.

Another essential strategy is to keep your credit usage low. You can use a small portion of your credit limit each month to show lenders that you are managing credit with restraint. While you might want to avoid using your card for fear of incurring debt, regular use is essential for keeping your account active and contributing to your credit profile, as long as you do it responsibly.

Monitor Progress and Stay Aware from the Start

Keeping track of your credit activity regularly ensures that everything on your account is accurate and up to date. From time to time, it’s helpful to review your account statements or request a credit summary to check for errors or suspicious activity. Be mindful that mistakes can happen, and catching them early helps you avoid bigger problems down the line.

Similarly, stay on top of your financial duties through simple strategies like taking note of due dates in a calendar or setting up payment reminders.

Let Time Strengthen Your Credit Standing

Time is one of your greatest tools when it comes to building credit. A long, consistent history of responsible use gives lenders more confidence in your reliability, reinforcing your eligibility as a borrower. One way to establish creditworthiness is to keep your first account open and in good standing for as long as possible. This ongoing record becomes one of the strongest signals of credibility and shows that you can manage long-term responsibilities well.

While it’s easy to take credit for granted, it plays a bigger role in your financial health and future than you might imagine. Yet, there’s no need to feel daunted or burdened by the pressure of building creditworthiness, especially as a young adult. Rather, it’s helpful to remember that building a good credit standing is a process. This process starts with strong financial habits that lead to wise decisions and intentional credit use later on. With this foundation and the right credit card, you can build a good credit profile that your future self will thank you for.

*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.