MANILA, Philippines – There are currently hundreds of credit card products from more than a dozen banks in the Philippines. How can you choose which credit card suits you best?
If you think you are qualified to apply for one, don’t just pick a random product in your application form. Choose among the hundreds in the market and narrow down until you get the best card for your needs, budget and lifestyle.
Here are three things you should take into consideration:
1. Your lifestyle
Some credit cards are specifically made for a type of consumer’s spending behavior. This way, users can use their credit card as a great financial tool through getting more perks than applying for the generic or classic cards.
- Shopping – There are credit cards that offer more rebates and perks specifically to shopping. Banks tie up with shopping malls and brands for users to experience and maximize their card.
- Petrol – If you travel more by land or you use your car every day and you spend on gasoline, credit cards that give more perks to gasoline station-goers are for you.
- Premium – These cards are meant for relatively high-salaried consumers. They offer more rewards and perks such as exclusivity features, front row seats to concerts, etc.
Besides your spending behavior, another one you must think about is the rewards you want to get with your credit card. Credit card companies give cash back privileges and reward points to users.
The points that you acquire can be used to redeem air miles or discounts and other services from affiliated partners. Some credit cards also provide you perks in hotels, airports, and dining establishments.
3. Interest rates and annual fees
You should know that every swipe is your loan or utang in Filipino. Whenever you swipe, you should remind yourself that you must settle it on or before your due date. Otherwise, it will incur interests and in the long run – compounding interests.
Some credit cards offer a waived annual fee for life or for a year or two, while some charge P2,000 to P6,000. Interest rates, on the other hand, are mostly around 3%. Hence, it is important to take note of all fees and charges including annual fees, interest rates, late charges and other penalties and fees. – Rappler.com
Image of woman holding credit card from Shutterstock
MoneyMax.ph is an online platform for comparing financial and telecom products and services. It aims to give the power of smart purchase decisions back to Filipino consumers by providing everything they need to become financially savvy.