helpful tips
Your card issuer’s method of computing the finance
charge makes a big difference in the finance charge
you’ll pay. Do understand them.
You can request for a waiver of annual fee. Your card
issuer may waive the annual fee if you maintain a good
credit record.
Consider maintaining only the right number of credit
cards. Multiple cards mean checking of multiple
statements and due dates and monitoring of multiple
credit limits. Maintaining multiple cards is also expensive
as annual fees can add up. Having more cards also serve
as temptation to more purchases, which could lead to
more debts you cannot pay, including finance charges
and fees.
Pay attention to your account balance to avoid exceeding
your credit limit. Exceeding your credit limit may either
mean additional fees, or merchants declining your
transaction. But more importantly, this also negatively
affects your credit history.
Don’t use your credit card to withdraw cash from ATM
or for cash advance, as much as possible. This is an
expensive form of credit.
Don’t perform online transactions in public places as in
cybercafés.
Keep a list of your credit card numbers and the card
company’s hotline numbers in case of disputes, questions
or to report a lost or stolen card.
You should pay your bills on or before the due date to
avoid late payment fee.
Keep your cards in a safe place after use, just like you
keep your cash.
Check card when returned by the cashier to ensure it is
yours and that it has not been tampered with in any way.
Check all details on the sales slip before signing/
confirming the transaction.
Don’t sign a blank charge slip.
Don’t let anyone swipe your card twice without giving you
a “transaction cancelled” receipt for the first swipe.
Don’t fax your credit card number/details. Your credit
card information can lie for hours for others to see at the
other end. Anyone passing by can record your number
and begin to use your card number fraudulently.
Don’t leave an expired card lying around. Cut the card
horizontally to ensure that the magnetic stripe at the back
is divided.
Developed by the Financial Literacy and Advocacy Division
Financial Consumer Protection Department
contact information
Financial Consumer Protection Department
Supervision and Examination Sector
Bangko Sentral ng Pilipinas
5th Floor Multi-storey Building
BSP Complex, A. Mabini St., Malate
1004 Manila
Telephone Numbers:
Trunk Line : (02) 708-7701 local no. 2584
Direct Line: (02) 708-7087
Email Address: [email protected]
Financial Education: Building Block for a Stronger Economy
the right credit card for you
Choosing the right credit card is an important decision. You
can maximize the benefits of owning one with the right credit
card. With a wide variety of cards available for you to choose
from, an understanding of credit card terms and options will
help you choose the one that matches your needs. Making a
careful comparison can save you money on interest rates and
fees. Below are some guidelines to help you choose the right
credit card.
types of cards
Types of
Credit
Cards
Description
Features
Regular
Cards
Cards that offer
only the standard
features with no
added frills or
incentives
Premium
Cards
Cards that offer
additional perks on
shopping, dining,
leisure, and travel
around the world
Lower credit limit
Higher credit limit
Higher monthy
interest rate
Lower monthly
interest rate
Lower or no
annual fees
Higher annual
fees
Added perks,
like product
warranties,
travel insurance,
emergency
services
Associated with
prestige since
issued only to
applicants with
higher income
and high credit
card usage
Rebate
Cards
Cards where
card purchases
will have
corresponding
rebates on
services or
goods with tieup companies
Gives reward
points,
such as on
airlines,
automobile
companies,
gas
corporations
Higher
monthly
interest rate
Higher
annual fees
types of cards
Types of
Credit
Cards
Best for
Regular
Cards
First time credit
card owners
People who are
not interested
in availing any
incentives or
perks
People who
pay off their
balances in full
each month
Premium
Cards
Cardholders
who frequently
use the perks of
the card
People who
do not pay
outstanding
balance in full
Rebate
Cards
For individuals
who make
majority
of their
purchases on
credit
People who
pay off their
balances in full
each month
Other types of credit cards include the following:
Niche Cards - These are credit cards designed for a particular
group or purpose (e.g. designed for women, designed for online purchases).
Dual Currency Credit Card - These are credit cards
designed for those who use their cards abroad very frequently
and have available US Dollars or earn in that currency. It allows
transactions in the Philippines to be billed in Philippine Pesos
while transactions made abroad are billed in US Dollars.
In choosing a credit card, consider also card payment networks
(e.g. American Express, China Union Pay, Diners, Japan Credit
Bureau, MasterCard or Visa Card) as it determines acceptability
thereof in the merchants/establishments and provides its own
perks.
To obtain the least expensive card and maximize the benefits
of a credit card, consider how you will use it.
Do you plan to pay your bill in full each month?
If you do pay your bill in full each month, the annual
fee and other fees will be the most important
consideration. Choose a card that has no annual
fee and offers a longer grace period.
If you plan to use the credit card to pay for the
purchases over time, and carry over a balance
from month to month, the monthly interest rate,
method of computing finance charge and base
of interest computation must be considered.
Choose a card that offers lower interest charge.
If you plan to often use the credit card for cash
advances, choose a card that offers lower cash
advance fee as well as lower interest rates for cash
advances. Some cards charge a higher interest rate
for cash advances than for purchases.
Make sure to start wisely, shop around, and conduct a credit
card research so you can review and compare the credit cards
available in the market. Compare the related fees/charges
and features and know your rights as a credit cardholder.
Below is the link to the updated list of BSP-supervised credit
card issuers.
w w w. b s p . g o v. p h / d o w n l o a d s / p r i m e r s / L i s t _ o f _ B S P Supervised_Credit_Card_Issuers
helpful tips
Credit cards are not a form of supplemental income.
Credit cards extend credit/loans that must be paid.
Before using your card, read carefully the Terms
and Conditions, most especially the fine prints.
Most cardholders encounter problems later on
because they do not read the conditions governing
their credit card.
You can enjoy interest-free credit with your credit
card. No finance charge is imposed if you pay
the Total Amount Due in full on or before the
Payment Due Date for a particular billing cycle.
You can make your big purchases at the start of
your statement period to maximize your grace
period.
You can enjoy the full benefit of the grace period
if you don’t have any unpaid balance from
previous months. It is just like using money FOR
FREE for a given period.