- Choosing the best credit card in the Philippines depends on the purpose for which you need the card.
- You should determine your purpose before you apply for one.
- However, if you want to borrow a small amount of up to 25,000 pesos, we suggest using Digido.
Top Credit Cards in the Philippines
A credit card is good not only because you can withdraw money and shop without cash, but also due to the fact that it builds your credit rating. But what credit card should you get? Remember, credit cards have an annual fee, the average of which is ₱1,000 per year. If you have 10 credit cards, you will be paying ₱10,000 per year.
As such, you have to pick only one or two, and this is what we will discuss today: the best credit card in the Philippines.
Types of Credit Cards in the Philippines
All credit cards in the Philippines can be used to withdraw money and to shop offline or online. However, there are different types of cards that provide various benefits.
Here are the most common benefits:
– Shopping rewards – this is the most common type of card where you receive points if you meet the spending requirement. For example, for every ₱100 you spend, you earn 1 point. You can accumulate points and exchange them for gift items, like oven toasters, microwaves, and electronic devices.
– Miles – the miles card is for travellers. If you fly quite often, use your credit card to get miles points. For some cards, they give you points based on the amount of money you spent, while others give points only if you used the card to pay for airfare. Once you have enough miles points, you can use them to buy plane tickets.
– Gas card – this is the best for people who use their cars every day. Like the shopping rewards card, you get “gasoline” points if you meet the spending requirements. You can use these points later to swap for gasoline with the credit card’s partner gasoline stations.
As you can see, different credit cards offer different benefits. You have to choose one that fits your lifestyle, so you can take advantage of the perks that the bank offers. For example, you should not get a gas credit card if you do not have a car – you are better off getting a rewards card.
How to Choose the Best Credit Card?
In this section, we will show you what things you should look for in a credit card.
- Low-interest rate – you have to choose a card that does not charge more than 3% for fees on late payments. The same thing goes for their instalment plans.
- Free credit card – while this is rare, still it is possible. You have to get a credit card that has no annual fee. On some occasions, you can negotiate this, especially if the person who offered you a card is bank personnel. Just tell the manager about this during the credit card application, and they can request this from their head office.
Lastly, choose a card that offers a huge credit limit. At the very least, choose one that offers a limit that is twice as much as your monthly salary. It does not really make sense to have a low limit since you cannot use it to buy big-ticket items.
Best Credit Cards in the Philippines for Starters
So, if it is your first time getting a card, which ones should you choose? In this section, we will show you the best credit cards for starters.
- Gasoline cards – these cards typically have a small fuel rebate. For example, you will get a 3% rebate for the money you spent on fuel. What does this mean? If you used the card to pay ₱100 for gasoline, you get ₱3 back.
- Cashback card – this is a kind of card where you also get a rebate if you used the card on specific purchases. Some banks would give you a 4% rebate if you used the card at the selected partners’ restaurants and department stores. One example of this is the BPI credit card rewards.
- Family card – this is a kind of card where you have easy access to cash; your family member will also have extension cards that they can use on their own.
Here comes our list of the best credit cards for first-timers in the Philippines. If you have an opportunity, go to the bank branches and inquire. If not, you can always check online and see the different types of cards that they offer. Some banks even have sections on how to apply for a credit card online.
Best Credit Cards in the Philippines for Cashback
Cashback is a direct rebate. If the card provider offers this, it means that for every certain amount you spend, you will get a percentage returned.
For example, if you spent ₱1,000, and the cashback is 5%, you will only pay ₱950 once your bill arrives. The 5% of ₱1,000 will be deducted from your bill. Cashback does not mean you will receive actual cash.
Some examples of cashback cards are the following:
– Citi Cashback;
– Security Bank Credit Card cashback;
– Union Bank Gold Mastercard Cashback.
One way or another, all banks have credit cards that offer cashback. However, some of them offer cashback on specific purposes only, like gasoline and a shopping rebate.
Best Credit Cards in the Philippines for Shopping
All credit cards in the Philippines can be used to shop online. However, if you are looking for cards that offer the best value, take your pick from the following:
– Citi Rewards;
– HSBC Red Mastercard;
BDO by far is the best because you can use it in SM Malls. It is also the best BDO credit card. If you are a regular shopper in SM, a BDO card will guarantee that you earn points and rewards if you shop in any SM outlet such as department stores and groceries.
Сredit Card Application Process
The credit card application process is quite simple. All you have to do is to go to the bank and get an application form. Submit the documents required, and then wait for the approval. You can either pick up your card from the bank branch, or they can mail it to you.
Take note that the credit card application and requirements for a credit card at PNB, EastWest and BDO may vary. Some banks may ask for your income tax return, while others may ask for your proof of employment. All banks will ask for proof of residence.
You can also apply online, but this can take a while. There are some banks whose primary application is now online, they can guarantee easy approval credit card application in the Philippines.
Top Сredit Cards in the Philippines-2020
Now, let’s take a look at some of the best cards you can get.
1. BPI card
First on our list of the best credit cards for beginners in the Philippines is BPI. It is one of the biggest banks in the nation, and it has several types of cards you can choose from.
2. BDO card
Get a BDO card if your primary purpose is to shop. The BDO Rewards Card is great, as it is often used in many online shopping sites. BDO also offers several instalment plans, even if the merchant does not. Requirements for BDO credit cards can be seen on the official website.
3. PNB credit card
PNB offers the convenience of online application. They have several cards like the PNB Ze-Lo, which does not have annual fees. The Essentials Mastercard is what you want if you love to dine and shop.
4. EastWest credit card
This bank offers several cards like the Platinum virtual card where you get to travel and inconvenience insurance, lifetime free membership. The travel insurance is up to ₱20 million.
5. Security Bank card
Like PNB, Security Bank offers an online processing system for your credit card application. Some of the best cards here are Gold Mastercard where you will get a higher credit limit, the Classic where it is easy to get approved, and the Cashback where you can get a 5% rebate.
Visit these banks online and check their rates and offers. Look for the right card that fits your lifestyle and see if they accept applications online. If you are looking for the best balance transfer credit cards in the Philippines, then Security bank is what you have to check out as it offers 0% interest on balance transfers.
Credit Card Alternatives
What if your credit card application was not approved? Is there an alternative? Yes, the alternative is Digido.
Digido is an online facility where you can apply for a loan. Below are the eligibility requirements:
- You must be a Filipino citizen between 21 and 70 years old;
- You must have a valid government ID;
- You must have a mobile number that works.
Make sure you prepare your documents, such as your certificate of employment and proof of residence and government ID. You have to scan these documents and attach them to your application.
Here are the benefits of getting a Digido loan:
- Fast – you can get approved in as short as 24 hours;
- Easy – you do not have to queue in a physical location, the application is online;
- Low-interest – Digido does not prey on the borrowers.
Digido also allows you to pay what you owe online. There are several payment options available to you. Also, you will get your loan online. If Digido approved your loan, they will send it to your bank account, or by some other electronic means.
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