Ultimate Guide on Using Credit Card In The Philippines

A credit card is one of the most beneficial financial advancement that banks has in store for its clients. This is because this handy form of personal loans is allowed for availing various products and services such as for shopping, dining, booking of flights, and even for paying utility bills. With its held convenience and flexibility, this card indeed is a must for those who wants to experience a ‘limitless’ spending and get past off the worries of having not enough.

But with greater power comes greater responsibility, right? Credit card, as said, can be an effective financial vehicle as long as it’ll be used properly.

But how is that properly, defined? Well, basically there are three things affixed to the term stated when using credit card is the concern. Knowledge. Discipline. Commitment. These are the fundamentals that must be significantly regarded when an account holder, besides from indulging with the credit card’s pros, should also want to avoid the consequences, negligence on the use of credit card might cause.

These three primary concepts are the basis of the following credit card guides and tips that are designed to help you walk on the right path towards your financial journey. Mistakes on this kind are costly– you might not just be able to afford it. To eliminate those possible financial havocs, here are the things you should consider:

General Guidelines & Tips On Using Your Credit Card:

Person-to-person/ Walk-in Mode of Transaction

  • On the counter, for the completion of your payments (purchases, bills) hand over your credit card to the authorized personnel.
  • Sign after receiving the printed receipt.

(Tip: The price on the receipt should be exactly the same with the amount you are paying for- no additional charges should be expected).


Fill up the information as asked, together with your account number and your pin (password).

(Tip: Credit card transactions online, although is commended for its ability to provide the customers a hassle-free payment processing, unfortunately, is in risk with different fraudulent attacks. That’s why there two certain things that you should check out first before entering any of your information:

First, the website you’d be transacting with should be regarded, proven, and trustworthy. This can simply be done through doing simple background checking on the credibility of that store (website) you’re about to negotiate with. There are blogs, forums, and even trust rating pages that are dedicated to this task. Giving some minutes for this one can save you from lots of troubles- legally and of course, financially.

Second, look on the address bar, be sure that the link starts with an https- this means that the website is secured from any external control/influence in which could be highly dangerous for any undertaking of financial transactions.)

For further assurance, keep track of the expenses you’ve done through your credit cards. This will not only help you set on bar your spending limits but utmost, serve as an essential tool to check that your credit card’s history is all parallel to the transactions that are done under your authorization.

5 Main Fees On Credit Cards You Should Be Aware Of:

Except for the charged interest rate for your every expense, here are some fees that are included when you’ll be using that credit card for your transactions. Knowing what type of fees exists, and how it affects your finances is a vital knowledge you should be informed of. Nonetheless, these could be used to your advantage if wisely handled.

Here are they:

  1. Annual FeesΒ – Well, of all the fees that exist, this one may be the most expected of them all! It is because that this fee is directly attached to your avail of the credit card- and what type of credit card you actually have. Also, credit cards that offer better perks and rewards usually are obtained by higher annual fees. Furthermore, on choosing what annual fee you should go for, you should balance it with your expected rewards (through your expenses) and analyze if a certain fee is really worth for its cost.
  1. Cash Advance Fees – Besides from the credit card’s ability to be used for purchase, it can also be used for borrowing cash. With this function, 2-5% of the amount borrowed is typically charged. This interest rate is definitely a disadvantage, that’s why except an indeed emergency case, avoid resorting into a cash advance.
  1. Balance Transfer Fee – Moving debts from a different credit card ranges from 2-5% fee. This is typically done for easier management of your credits and mostly, due to the lower interest rate on the card where the debt is to be transferred onto. Although, you shall not get yourself deceived, think- is the balance transfer fee significantly lower than the difference of the interest rate of the card where a debt is from and where it is to be placed? If so, then go for it.

However, there are banks that do not charge a balance transfer fee on a certain span of time. Thus, if there’s a good opportunity for credit transfer, then don’t miss this benefit offered.

  1. Annual Percentage Rate/ Finance ChargeΒ – The amount borrowed on credit card starts to gain its balance after the month of the purchasing date. This charge, if not regarded, could reach up to a terrifying 40% charge for a year. In order to avoid this financial burden, be sure to pay all your balance within a month’s span.
  1. International Transaction Fees – When the purchase includes a foreign transaction, a fee except for the interest and the main amount for payment is to be expected. Transaction outside the Philippines usually goes for a 3% charge- although this may vary based on your credit card’s company.

Credit cards with the essential knowledge, discipline in spending, and commitment in the responsibility for its repayment is surely a great tool to achieve an expanded means of living. Just be reminded that although these general facts of guidelines and tips are all true, gathering information from your card’s company is still a great option- as rules and regulations vary from one financial institution to another. Nonetheless, all these concerns falls into a single thought:

You want to make the most out of your card?… Then it’s simple- be a credit card literate.