Absolving oneself from debt

It is payday today and I did something different while managing my financials: I paid my credit card debt in full.

I got my first card in 2017 from BCA when I started my job in Indonesia. A coworker mentioned that he has about 10 cards from multiple banks to try out their package (and earn signing bonuses) which encouraged me to try applying for one. It was not something I fully comprehend at the time. As far as I know, credit card was:

  1. Something my parents didn't like and only obtain as late as 2015+
  2. Something my past colleague used extensively to collect air miles in his consultancy job
  3. Something my friend use to get discounts while we were dining at his favorite place

Credit was a concept that was foreign to me, which is hilarious because I went back to the country to work at an online P2P lending business. Fast forward 4 years later and I've finally understood the extent of how proving oneself to be capable in managing credit is a major benchmark of how an individual is rated financially via their national credit score.

It also taught me the limitation in how one's credit limit is highly restricted for good reason to secure the risks lenders are exposed to. Given this backdrop, plenty of our customers at the time repaid their working capital loan earlier to gain the ability to borrow at a much higher ceiling. Apart from this benefit, with increased trust and visible cashflow records one's limit might be reviewed to also include lower interest rate.