MANILA, Philippines - Credit card use is getting more and more popular among Filipinos on the back of an improving economy, a booming E-commerce industry, and modernized banking services.
A credit card offers great convenience when making payments online and offline—wherever you are in the world. With just a shiny plastic card in your wallet, you can buy anything anytime.
But, with hundreds of credit card products in the market, how do you really choose a credit card in the Philippines? We provide you here with a list of crietria to consider which one's the best for you:
1. Your Spending Behaviour
Getting a credit card is not a purely objective decision with only the lowest annual fee or the lowest monthly interest rate as your considerations. Before going into these details, you have to know why you are getting a credit card in the first place. Consider listing down the things you plan on using a credit card for. Is it for shopping? Air miles? Big purchases like gadgets and home appliances? Education? Find a specific credit card that fits your lifestyle before comparing its features, rewards, fees and interest rates.
2. Rewards and Incentives
Next thing to ask yourself is that what kind of rewards or incentives do you want when you make purchases? Some banks offer great rewards and cashback points from your credit card payments. Credit card points can be redeemed for air miles, as well as discounts on goods and services with affiliated retailers. Some banks also partner with establishments that reward you with cool gifts and freebies. The right credit card can also provide you with special privileges in hotels, airports, and dining establishments.
3. Annual Fees and Interest Rates
You must, however, remember that every swipe of your credit card is technically a loan from the bank that you have to pay at the end of your billing cut-off. Hence, it is important to take note of all fees and charges including annual fees, interest rates, late charges and other penalties and fees. Be very informed when it comes to these numbers because unless you always pay on time, these charges will be added expenses in the long run.
Below is an infographic comparing some of the popular credit card products from nine banks in the Philippines (data were provided by MoneyMax Philippines). Click the image below to zoom:
For a more complete and customized view, head over to MoneyMax Philippines' website.
MoneyMax is the Philippines' foremost online platform for comparing financial and telecom products and services for free. It aims to help Filipino consumers be financially savvy by providing information about these products.