Credit cards have become an essential financial tool for many Filipinos, providing convenience and flexibility in managing their finances. With a wide range of credit card options available in the market, it can be overwhelming to choose the best one that suits your needs. In this article, we will explore the top 10 best credit cards in the Philippines for the year 2023.
In the rapidly digitized world we’re living in today, credit cards are gaining popularity due to several reasons, such as the following:
Knowing the best credit cards in the Philippines is important because it allows you to make an informed decision that suits your needs and preferences and allows you to make a financially responsible choice. Here are the best credit cards in the Philippines per category:
Low-income earners should consider several factors in choosing the best credit card that caters to their interests and provides them with more spending power while helping them better manage their finances.
They should look for credit cards with lower income requirements, flexible payment terms, reasonable fees and charges associated with the card, and cashback rewards on specific purchases or have rewards programs where they can redeem rewards items per specific rewards point.
Here are some of the most recommended credit cards for low-income earners:
Beginners or first-time credit card users can start choosing the best-suited credit card for them by comparing different credit cards offered by various banks and financial institutions in the country. Factors to consider include the card’s annual fee, interest rates, credit limit, rewards program, and any additional benefits such as travel insurance or cashback offers.
Here are some of the best credit cards for beginners:
Credit card holders in the Philippines can choose the best cashback credit card for them by considering a few factors. These factors include their spending habits so they can determine which categories they spend the most on, such as groceries, dining, or travel, and the cashback rates and minimum spending requirements and any cap on cashback earnings offered by the credit card.
Here are some of the best cashback credit cards you can choose from:
When choosing the best Airmiles credit card in the Philippines, credit card holders should consider several factors. First, look for a card with a low spend-per-mile requirement, as this will allow you to accumulate miles faster. Additionally, check if the card offers travel insurance and assistance, which can be beneficial during your trips.
It’s also important to find a card with low foreign transaction fees to avoid unnecessary charges during international travel. Lastly, look for a card that provides free airport lounge access for added convenience and comfort. Some popular options in the Philippines include the following:
A secured credit card is a type of credit card that requires a cash deposit from the cardholder, which acts as collateral in case of missed payments. Note, though, that secured credit card holders aren’t allowed to withdraw their cash deposit as it’s the basis of their credit limit, making a secured credit card a different financial tool from a savings account, which is designed for saving money while retaining easy access to the funds deposited.
Secured credit cards are gaining popularity with freelancers and self-employed customers because they offer an opportunity for them to build credit. Freelancers and self-employed individuals often face challenges when it comes to accessing traditional credit cards due to fluctuating income or irregular payment schedules. Secured credit cards provide a solution by allowing them to establish creditworthiness through a cash deposit.
Here are two of the best secured credit cards available in the Philippines:
Now that you know the recommendable credit cards per category, you then have to consider other factors like their alignment with your financial goals and lifestyle. It’s also important to understand the process of applying for a credit card in the Philippines.
When choosing a credit card, it is essential to consider the features that align with your spending habits and financial goals. Here are some of the features that you should consider when choosing a credit card:
Annual fees are charges imposed by credit cards for using their services, often included in credit card bills on the first month after becoming a cardholder. In subsequent years, the annual fee is charged on or around the cardholder’s account anniversary.
It’s thus important to consider these fees when choosing a credit card because they can significantly impact the overall value and cost-effectiveness of the card. While some cards offer bigger rewards and benefits, they often come with costly annual fees. On the other hand, some cards may offer no annual fees but no way to accumulate rewards points or benefits.
Sometimes, many cards provide benefits without charging an annual fee. However, it’s commonly subject to different terms and conditions of that credit card’s promo and may even be constrained by the promo period. Some credit cards also provide ways to waive the annual fee, provided you’re a high-value banking or investment customer or an active-duty military member.
When choosing a credit card in the Philippines, it is crucial to consider credit card fees and prioritize selecting a card with low fees, intuitively so that you won’t be caught in an overwhelming amount of credit card debt. Here are some of the credit card fees you should take note of:
Interest rates should be considered when choosing credit cards because they play a significant role in determining the cost of borrowing and the overall financial strain on cardholders. For example, a cardholder who opts to have their credit card balance carried over to the next monthly billing statement may incur additional payments based on the interest rates, so low-interest credit cards can help ease the financial burden for the said cardholder.
When choosing a credit card, it’s important to consider the perks it offers and how they align with your preferences and financial goals. Credit card perks can vary widely, ranging from cash-back rewards and airline miles to discounts on travel or retail purchases. These perks can provide significant value if you frequently use the card for specific categories or if they align with your spending habits.
For first-time credit card users or those looking for a basic credit card, it’s important to focus on cards with no annual fees and low-interest rates. These cards can help establish a credit history and build credit without incurring unnecessary costs.
On the other hand, premium credit cards often come with higher annual fees but offer more exclusive perks like a higher or unlimited credit limit, cash rebates, airport lounge access, free travel insurance, concierge services, and higher reward rates. These cards are suitable for frequent travelers or individuals who can take full advantage of the added benefits.
Ultimately, the choice between basic and premium credit cards depends on your financial situation, spending habits, and personal preferences. It’s crucial to carefully evaluate the perks offered by each card and determine which ones align with your goals and priorities.
Credit cards with the best security features should be considered because they provide protection against fraud and unauthorized transactions, giving users peace of mind. These security features are designed to safeguard cardholders’ financial information and minimize the risk of identity theft. Examples of common security features provided by credit cards include:
To apply for a credit card in the Philippines, you can either visit a bank branch or apply online through the bank’s website. The application process typically involves filling out an application form, submitting the required documents, and undergoing a credit assessment. Typically, people with existing credit cards are highly likely to be approved on their new credit card application.
Once your application is approved, you will receive your credit card within a few days. It is advisable to activate your credit card immediately and familiarize yourself with the terms and conditions to maximize its benefits.
To qualify for a credit card in the Philippines, you need to meet certain criteria set by the credit card issuer. Banks and financial institutions assess your creditworthiness by evaluating your income, employment status, and credit score.
Although specific credit cards may have additional criteria, such as a minimum income requirement, most credit cards in the Philippines commonly require the following basic qualifications:
Similarly, some credit cards may require additional documents to evaluate your application further, such as audited financial statements for self-employed individuals, but they’re mostly documents that are used to confirm your identity, income, and employment status. Here are some of the documents commonly asked for during a credit card application:
If you are a first-time credit card applicant, starting with a basic credit card before upgrading to premium cards is recommended.
A good credit score is crucial for a healthy financial life. It reflects your creditworthiness and determines your eligibility for various financial products, including credit cards. To maintain a high credit score in the Philippines, it is important to pay your bills on time, avoid maxing out your credit limit, and keep your credit utilization ratio low.
Having a good credit score opens up a world of financial opportunities. It gives you access to better interest rates, higher credit limits, and more favorable terms and conditions. A good credit score also enhances your chances of getting approved for loans, mortgages, and other forms of credit.
Financial institutions consider individuals with good credit scores as low-risk borrowers, making it easier for them to access credit when needed. Ultimately, a good credit score reflects your financial discipline and responsibility, which can positively impact your overall financial well-being.
You can check your credit score in the Philippines through credit bureaus such as TransUnion and CIBI Information Inc. These credit bureaus provide credit reports that contain your credit score, credit history, and other relevant information. You can request a copy of your credit report online or visit their offices to obtain a physical copy.
If you have a low credit score or want to improve your creditworthiness, there are several steps you can take, briefly outlined as follows:
If you want to invest in luxury properties without hurting your credit score, Brittany Corporation offers a range of premium real estate options in the Philippines. With a solid reputation for quality craftsmanship and attention to detail, Brittany Corporation provides luxurious, well-designed homes in prime locations. Our properties are built to the highest standards and offer a combination of elegance, comfort, and exclusivity.
Choosing the best credit card in the Philippines requires careful consideration of your needs, preferences, and financial goals. By understanding the application process, features to look for, and how to maintain a good credit score, you can make an informed decision and maximize the benefits of owning a credit card.
Whether you are a low-income earner, a beginner, or someone looking for specific features like cashback, Airmiles, rewards, or secured credit cards, there are options available in the Philippines that cater to your needs. Consider your financial goals, spending habits, and lifestyle preferences when selecting the best credit card.
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