When it comes to credit cards, there is no one-size-fits-all solution. The best credit card for you will depend on your individual financial situation and spending habits. Having one is not just a privilege but also a huge responsibility. With proper handling of purchases, you can actually build your credit score.
To help you out, we’ve compiled a list of eight different types of credit cards available in the Philippines. Whether you’re looking for cashback, rewards, or travel perks, we’ve got you covered.
- Co-Branded Credit Cards
- Interest Back Cards
- Installment Cards
- Rewards Cards
- Rebate Cards
- Secured Credit Cards
- Supplementary Cards
- Travel Credit Cards
Co-Branded Credit Cards
A co-branded credit card is issued by a bank in partnership with a merchant or another type of business. Cardholders can earn rewards points, and once they have accumulated thousands of points, they can use them to pay for merchandise or services from the partner business.
In the Philippines, several co-branded credit cards are available from banks such as BDO, Citibank, and HSBC. For example, BDO Bench Mastercard offers 20% off to cardholders every Monday and other exclusive discounts. Meanwhile, Citi Grab credit card has a ton of rewards and exclusive offers whenever you use it to pay for products and services via Grab app.
Co-branded credit cards offer benefits for both cardholders and businesses. For consumers, they provide an easy way to earn rewards while shopping at their favorite stores and enjoy exclusive discounts. For businesses, they increase sales and brand loyalty
Interest Back Cards
The interest back card offers cardholders the unique benefit of receiving interest back if they pay their balance on or before the due date. Cardholders must pay at least the minimum amount due or in full and on time each month to receive this refund.
At the time of writing, there’s only one interest back card available in the Philippines, the Citi Simplicity+ Card. Some benefits you get when you have it are a waived annual fee for life, no late payment fee, and enjoy 10% interest back.
An installment card allows cardholders to make large purchases and pay them off over time in monthly installments. You can use it anywhere that accepts credit cards and typically have high credit limits.
While this card typically has higher interest rates than a regular credit card, it can be a good option for cardholders who need to make a large purchase but do not have the cash on hand to pay for it outright.
On top of that, if you want to improve your credit score, pay on time to improve your credit history. Security Bank Next Titanium Mastercard is an installment credit card that automatically converts purchases of more than ₱5,000 into installments with interest.
A rewards card offers points for purchases made with the card. For a specific amount you spend, there’s an equivalent reward point. Remember that each card issuer has its own rules and restrictions on how you earn points. But the general concept is the same: use your card for purchases and redeem your travel points, merchandise, or cashback.
One of the key benefits of using a rewards card is that you can earn points whenever you swipe your card For example, you earn double points or (2x) rewards points for every ₱20 spent using the Metrobank Reward Plus card on utilities, groceries, and fuel.
You can often triple your points by shopping at specific retailers or special promotions like when you use your Citi Rewards card when you shop or dine.
Another key benefit is that you can use your points to save money on travel expenses. For example, if you have a rewards card with an airline miles program, you can use your points to book free or discounted flights.
A rebate or cashback card allows customers to get a rebate or money back on their purchases. Rebate cards are becoming increasingly popular in the Philippines as more and more people are looking for ways to save money. There are many different types of rebate cards available, each with its own benefits and drawbacks.
For example, some rebate cards offer a higher rebate percentage on certain categories of purchases, such as fuel or groceries. Others may have a lower overall rebate percentage but offer bonus rebates on other spending categories like dining or online shopping.
Metrobank Cashback card offers up to an 8% rebate on certain spending categories. Meanwhile, China Bank Cash Rewards comes with a 6% rebate on qualified spending.
Secured Credit Cards
A secured credit card is a credit card backed by a security deposit. The deposit is usually equal to the credit limit on the card, which is considered collateral to guarantee the issuance of your credit card.
A secured credit card is a good option if you’re a freelancer or working in the gig economy because there is less required documentation. All you need is to deposit money to your preferred bank where you want to apply for a credit card.
Once you have built your credit history, you may use your secured credit card as a reference if you plan to apply for another credit card.
A supplementary card is an additional credit card linked to a primary credit card account. This is ideal for a family because the members can share the credit limit.
Supplementary cards typically have the same privileges as the primary card, such as cashback, rewards points, and travel perks. Major banks such as BDO, BPI, Citibank, and HSBC offer supplementary cards in the Philippines.
These cards can be a helpful way to manage your finances and improve your credit score. Students can also use this as the primary account is usually linked to their parents. Of course, it’s important to use supplementary cards responsibly. Making timely payments and keeping your balance low will help you avoid interest charges and late fees.
Travel Credit Cards
A travel credit card or air miles in the Philippines is a type of credit card that offers rewards or air miles points for every purchase made. These points can be redeemed for airline tickets, hotel stays, and other travel-related expenses.
Many travel credit cards are available, each with its own benefits and rewards. For example, some cards offer discounts on airfare, while others provide free checked bags, travel insurance, or priority boarding.
Travel credit cards can be a great way to save money on your next vacation, but choosing the right card for your needs and spending habits is important. For example, the Citi PremierMiles Card lets you earn 1 PremierMile for every ₱30 spend. You can use your never-expiring points to redeem air miles. At the same time, the HSBC Premier Mastercard gives cardholders unlimited access to over 850 lounges in more than 400 airports worldwide.
Travel credit cards can provide a great way to save money on your next trip, so be sure to compare different options to find the best card for your needs.
So there you have it, eight types of credit cards in the Philippines and what they can do for you. Hopefully, this has helped make your decision a little bit easier. If not, remember that every card is different, and some may offer features that others don’t.
Don’t be afraid to ask questions or compare interest rates and features before signing up. Most importantly, use your credit card responsibly so you can enjoy all the benefits it has to offer.
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Asia Miles Guide – How Filipinos can Earn, Maximise and Redeem Asia Miles