If you are like many other Filipinos, you probably do not associate a credit card with saving money. More than likely what comes to mind is spending money, interest rates, fees, and maybe even debt. It may be hard to wrap your head around the fact that it is possible to save money while spending money. A credit card can do just that when used responsibly. If you can use a credit card responsibly, applying for a credit card in the Philippines may be one of the best decisions you could make, and could save you a lot of money in these five ways.
- Rewards Points
One of the biggest ways a credit card can save you money is in the form of rewards points. If you’re already spending money, you may as well be rewarded for it. Most credit card companies offer rewards cards to help you make the most of your spending, and entice you to use their card. For instance, there are many BPI credit cards that will reward you simply for charging purchases to your BPI credit card. Depending on the card you’ll get, you can redeem your points for things such as store gift cards, travel tickets, travel accommodations, merchandise, and more.
- Cash Back
Who wouldn’t want to earn cash back for their purchases? Luckily, there are many credit cards on the market that offer outstanding cash back rewards programs. Cards such as the EastWest Bank EveryDay MasterCard will provide you with 5% cash back on essential spending such as supermarket, gas, and drugstore purchases. The more you spend, the more you earn, and the more you save in the long-run.
- Exclusive Promotions and Discounts
In addition to earning rewards points and cash back, many credit cards in the Philippines will provide you with opportunities to take advantage of exclusive promotions and discounts. For instance, the BDO Visa Gold Credit Card will provide you with exclusive deals at partner restaurants and establishments that are not available to the general public. Other credit cards, like the BPI Ayala Malls Amore Card will give you major discounts at Ayala Mall retailers all year long. There are application requirements you must meet to be approved for the BDO Visa Gold Card though. For instance, you must be between the ages of 21 and 70, and you must make ₱420,000 annual income.
- 0% Interest on Installments
A credit card could also help you get 0% financing on installments, which can save you big money in interest charges. A 0% installment plan, such as the one offered among various BPI credit cards, is essentially a repayment plan that allows you to pay your credit card debt at selected merchants by installments at zero interest. If you are interested in a 0% installment repayment program, make sure to verify there are no additional fees associated with it. Also, make sure that the 0% interest applies to the purchase you want to make, and pay special attention to any late payment rules. There is huge potential to save money with a 0% installment repayment plan, you just need to make sure you understand all the details pertaining to the credit card you’ll use for the purchase.
- Increase Your Credit Score
Getting a credit card and paying all your credit card bills on time will prove to lenders that you are a responsible borrower, which will have a positive effect on your credit score. Raising your credit score will help you get better interest rates on future loans, which will save you big money in the long-run.
Credit Cards Can Save You Big Money in The Long-Run
Before reading this article, you may not have been able to draw a correlation between credit cards and saving money. We have provided you with five of the many ways using a credit card can actually help you save money long-term. Responsible credit card use can help you: build rewards, earn cash back, get access to exclusive discounts, get 0% interest on installments, and improve your credit score. Before you apply for a credit card in the Philippines, it is essential to do some research to find the credit card that is perfect for your lifestyle. Responsible credit card usage starts with finding a credit card that suits your unique financial situation. Start getting rewarded for your spending, and consider filling out a credit card application today.
This article was contributed with iMoney Philippines.