What is a Credit Card?

A credit card is a payment card issued by a financial entity (i.e. the card issuer), which allows a card holder to purchase goods and services on credit.

How Do Credit Cards Work?

Credit cards work similarly to personal loans. When you make a payment using a credit card, you are essentially “borrowing” money from the card issuer. By the end of each month, you are expected to repay the amount you’ve “borrowed”. If you don’t pay it in full, you’ll be charged interest on the unpaid amount.

Different Categories Of Credit Cards Available In The Philippines

There are various types of credit cards, each with differing privileges and functions. In the Philippines, these are the major categories of credit cards you can consider:

  • Rewards points credit cards: These cards give you reward points for purchases made using your credit card. Reward points are redeemable for gifts, vouchers and other goodies as indicated in the issuer’s reward catalogue.
  • Low interest credit cards: These cards offer lower interest rates compared to conventional credit cards.
  • Travel miles credit cards: Travel miles credit cards give you mile points for selected purchases. Mile points are redeemable for travel-related privileges, such as air tickets and seats upgrades with participating airlines.
  • Petrol credit cards: These cards offer petrol-related benefits, such as cash rebates or extra reward points on fuel and spending at petrol kiosks.
  • Premium credit cards: Premium credit cards offer credit card promotions and privileges that focus on higher-end products and services, such as golfing, fine-dining and exclusive clubs.
  • You will find that the credit card comparison page lets you compare credit cards and help you find the best credit card by showcasing each credit card’s main features and benefits. You can even apply for a credit card online in just a few clicks!

    Credit Card Interest Rates In The Philippines

    In the Philippines, banks charge interest of around 3.5% per month, or 51.11% per year. Some card issuers may also have higher or lower interest rates depending on their operating policies.

    Minimum Monthly Repayments Of Credit Cards In The Philippines

    In the Philippines, credit card holders are generally required to make a minimum payment of 5% of the credit card bills on the due date every month. Failure to do so may result in penalties, which differ from bank to bank.

    Will I Go to Jail If I Don’t Pay My Credit Card Debt in the Philippines?

    Not paying credit card debt is not a criminal case under the Philippine Law. However, the creditor may file a civil case against you to collect the money. Also, be aware that banks share information with each other; you may find it difficult to apply for loans or other financial products with other banks once one of them tags you as a delinquent payer.

    Process and Documentation Needed To Apply For A Credit Card

    After you compare credit cards on our credit card comparison page, you can apply for a credit card online for FREE using iMoney’s online calculator. The documents needed for a credit card application differ from card issuer to card issuer, but commonly include:

    driver’s license, passport, company ID, etc
    Proof of income:
    income tax return, pay slips, certificate of employment.

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