Grocery Credit Cards of December 2024

Credit cards allow users to pay for goods and services, settle utility bills, and access cash advances in times of emergency. Since different banks provide various cards to their customers based on their income, needs, age, and other factors, the credit card for groceries you select should meet your needs and be readily available.

What is a Grocery Credit Card?

A grocery credit card is usually issued by banks and other financial institutions and allows you to pay for groceries in selected grocery stores. However, there are certain conditions that you must meet before they approve your credit card application, such as age, gross annual income, citizenship, and proof of residence. The credit card lets you track your grocery spending and manage your finances more effectively. You also earn cashback, prizes, discounts, and other credit card rewards when you use credit cards for groceries. Accordingly, different grocery stores accept different cards for grocery purchases. You will have to confirm which cards are accepted by which grocery stores before purchasing items from the stores.

The amount of money you spend in a month then accumulates to a balance you must repay on the agreed-upon date.

How Can I Borrow a Loan Using Grocery Credit Cards?

You can access funding using your card, but the amount you borrow should not exceed your credit limit. Unlike other bank loans, which require a lot of documentation, a credit card loan is accessible without documents to cardholders, provided there is unutilized money in your credit line. You can access the loan in three ways.

1. Visit the nearest branch and fill out an application form. After submitting your duly filled form, the bank disburses your loan instantly to your account.
2. You can access a loan (also known as a cash advance) from ATMs. Using your credit, request an amount not exceeding your credit limit and access the cash.
3. A more convenient way is an online application. You can borrow and access your loan by visiting the official website of your credit card provider in the following steps.

• Fill out the loan application form and submit it with the required documents in PDF form.
• The bank will verify your documents and approve your loan if you meet the requirements.
• Then, they will disburse your loan to your account instantly after verification.

How to Choose a Grocery Credit Card

With tons of credit cards in the market today, choosing the right credit card for groceries can be challenging. First, you should determine if you meet the minimum requirements and whether the card meets your financial needs.

Another thing to consider is the interest on cash advance, other charges, and the repayment period. If you have enough income to settle your loan within a month, you can go for a card with a short repayment period. On the other hand, low-income earners should go for cards where the loan is spread over a long period and paid in installments.

The following factors will help you choose the best credit card.

1. Annual fee. Most banks charge an annual fee on credit cards. In some banks, you are exempted from the cost in the first year, while others offer you supplementary cards free of the annual fee. Premium cards charge the highest annual fee, while regular cards charge a lower fee. Note that late payment attracts interest, so you should choose a card whose annual fee is manageable.
2. Cashback. Some cards have the cashback feature where you get a percentage of your spending back. Your purchases determine the payback percentage for a grocery card.
3. Interest rate on loans. The cash advance and loans you access using a credit card attract a monthly interest. You should check out for a card that charges low interest on loans and other charges such as over-limit expenses.
4. Rewards. Different cards come with different perks, such as discounts on specific purchases, a lifetime annual fee waiver on supplementary cards, and reward points for the money spent. You can also be enrolled in a loyalty program when you meet a set amount in a year. Therefore, choose a grocery credit card if the perks and rewards are relevant to you.
5. Other charges. The annual fee and monthly interest on loans are not the only charges on credit cards. Additional charges include late payment penalties, loan processing fees, and changes in international payments. Before choosing a loan, check out the other costs you will incur besides loan repayment and interest.
6. Accessibility. For your convenience, the best grocery credit card should be accessible wherever you go. It should also allow for online transactions and be used at your nearby ATM.
7. Minimum repayment. If you are in a financial fix and cannot pay the amount due, the bank allows you to make a minimum payment, which is a percentage of the amount due. A low minimum repayment is manageable but comes with additional interest on the unpaid amount.
8. Age limit. Some banks offer customers 18+ years old credit cards, while others set the minimum age at 21. The upper age limit for most banks is 65-71 years. When choosing a card, consider your age and choose the best fit for you.
9. Annual gross income requirements. How much income do you make annually? Your application can quickly get approved if your income meets the bank's minimum requirements.

Where can I get credit cards for groceries?

These banks provide credit cards for groceries in the Philippines:

1. Citibank
2. Security Bank
3. EastWest
4. Robinsons Bank
5. UnionBank
6. HSBC
7. RCBC Bankard
8. AUB
9. PNB

Credit Cards for Groceries

Credit cards are a great way to keep track of your spending and offer bonus rewards, but there are so many types out there that it is hard to choose the right one for your needs. Therefore, when looking for grocery rewards credit cards, it's crucial to find one that fits your lifestyle and needs. Here is a list of the best grocery credit cards in the Philippines.

Rewards credit cards

HSBC Red Mastercard®

With this reward card, for every ₱20 you spend in the grocery stores, you earn a point and 4x points on online grocery shopping. These reward points make Red Mastercard one of the best grocery rewards credit cards.

Qualifications

• You must be a Filipino citizen or a Philippine resident.

• You must be 21-65 years old.

• You are eligible for this card if you have a credit card issued in the Philippines for at least one year.

• You must have a ₱17,000 minimum gross monthly income.

Benefits and features

• A 1% cashback on all purchases, including grocery and other general purchases

• Exclusive privileges when shopping for household items and groceries for cardholders

• Perks for dining, grocery, and fuel purchases

• The annual charge is ₱1500, and the interest rate is 3.5% per month. The bank also offers a welcome gift to new applicants and a 6% rebate on all Caltex fuel purchases.

Citi Rewards MasterCard®

Citi Rewards Mastercard earns cash rewards for all grocery stores, supermarkets, online stores, and food delivery app purchases. The card issuer does not offer a bonus rewards cap and waives the annual fee for the first year. Dining and grocery store purchases receive 3x points, while other expenditures earn one point for every ₱30 spent.

Qualifications

• You must be 21 years old and above.

• You must be a Filipino citizen or Philippine resident.

• You must have a ₱15,000 minimum monthly gross income.

Benefits and features

• A 2% cash advance interest rate each month.

• 0% intro APR on cash transfers for the first 15 months.

• The annual charge for this card is ₱2500 after the first year, and a ₱1500 late payment fee. Spending more above your credit limit incurs a ₱1500 interest charge.

RCBC Bankard Flex Gold Visa®

You receive 2x points for every 50 dollars you spend using the RCBC Bankard Flex Gold Visa for supermarket shopping. Your points are doubled if you buy groceries at a supermarket, and you may adjust to your preferred billing cycle if your spending patterns change.

Qualifications

• A minimum annual income of ₱50,000.

• Applicants must be 21-65 years old for a primary card and 13-65 years old for a supplementary card.

• Applicants must be Filipino citizens or Philippines residents.

Benefits and features

• Cardholders are rewarded 2x points for every 50 dollars spent on groceries.

• Reward points are doubled if you buy groceries from a supermarket.

• A ₱250 annual charge, a ₱600 over-limit fee, and a 2% loan interest rate are among the fees associated with this card. If your monthly spending exceeds your credit limit, the bank will charge you ₱850 or the minimum amount payable if it's less.

No annual fee grocery credit cards

AUB Easy Mastercard®

You will enjoy flexible payment terms besides the annual fee waiver. The card also earns you one point for every ₱20 you spend on grocery purchases and other eligible purchases.

Qualifications

• You must be at least 21 years old to apply for this card.

• Your monthly gross income should be ₱21,000 or more.

• You must be a Filipino citizen or a Philippines resident.

Benefits and features

• No annual fee.

• No interest in new purchases.

• Cardholders have the freedom to choose when to repay their loans and the method of payment they prefer.

• The cash advance on this card attracts a 2% monthly interest and a ₱750 late payment fee.

PNB Ze-Lo MasterCard®

It is the go-to credit card for people on low incomes who make at least ₱21,000 a month in gross income. The bank charges a low-interest rate on loans, and there are no late payments or over-limit costs in addition to waived annual fees.

Qualifications

• You must be 21-65 years old.

• You must be employed with relevant documents to show the date of employment and gross income.

• Or you must be self-employed with an income tax return certificate to show your gross income.

• You must must have a good credit history.

Benefits and features

• No annual fee.

• No late payment fee.

• Lower finance charge.

• Lower minimum due date.

Citi Simplicity+®

Citi Simplicity+ is an interest-bearing secured credit card with no annual fee.

Qualifications

• For the secured MasterCard, you must be above 21.

• You should earn at least 180,000 per year.

• You must be employed and have relevant documents for proof of income.

• Or you must be self-employed with relevant documents such as tax returns certificate to prove your income.

Benefits and features

• Zero annual fee and low interest on loans.

• A ₱1500 reward for your grocery shopping when you hit the required amount.

• Citibank will not charge you late fees or over-limit penalties if you do not pay the minimum amount by the deadline if you use this secured grocery credit card and exceed your credit limit.

How to apply for a credit card for groceries?

Before applying for a credit card to use at the grocery stores, ‌do extensive research on the requirements, features, and benefits of different cards and choose the most ideal. Here are the general requirements for new and existing cardholders.

Prequalification

Different banks have different prequalification requirements for a credit card to use at grocery stores. The common ones include:

• Age. You must be aged 18-71 years. The minimum age requirement for banks ranges from 18-21, while the maximum age is between 65-71.

• Annual income. Your gross annual income determines whether you qualify for a credit card. Different banks have different minimum yearly income requirements for grocery cards. Before applying for a card, you must provide proof of income, such as payslips, bank statements, and business records.

• Citizenship and residency. Some banks operate within specific geographical regions, such as countries or continents, while others operate globally. When applying for a credit card in the Philippines, your national ID or any other photo-bearing ID such as a driving license is required to prove your identity. If you are a foreign citizen, you must have proof of residency, such as visa and employment letters.

• Identification documents. They should contain your birth date, legal name, and address. A social security number is also required to confirm your credit status.

Application

You can apply for your credit card online, in a bank, by mail, or on the phone through the mobile app. If you want to apply to a bank, you should visit the nearest branch, fill out an application form, and attach copies of all required documents. The good thing about bank applications is getting direct advice from the customer care personnel.

Applying on the phone, through email, or on the bank's website is more convenient because you can do it remotely. Here are the steps to follow.

1. Access the bank's site and click on Apply. An application form pops up, which you should fill out. All the required details must be correct to avoid disqualification.

2. Submit your application. Once you have filled out all the required fields and uploaded the required documents, you can submit your application, and the bank will assess it.

3. Wait for approval. Your application will be approved if you meet all the requirements and fill out the form correctly. The approval time for different banks differs, but you should expect a response within 1-10 days.

4. After the bank notifies you of your application approval, you can collect your card from your branch.

How to repay a credit card loan debt?

You can pay back your loans by depositing them into your account at the ATM, payment center, or branch closest to you. You can pay back your loan online if the lender authorizes your account for the mobile app. The most typical method of repaying your loan is through an automatic debit arrangement, in which the bank directly deducts the amount you owe.

If you are repaying online, follow these steps:

1. Visit your lender's website

2. Enter your name, email address, phone number, or any other authorization details required by the lender.

3. Select the account to credit.

4. Select the loan to pay and enter the amount. You will receive a reference number instantly.

5. Enter the one-time pin sent to your email and approve.

6. You will receive a confirmation message once your payment is received.

Pros and cons of using a credit card for groceries

Credit cards make transactions fast and convenient and save time because you can access their services remotely. If not used responsibly, however, they can make you sink into huge debts or lose your good credit rating. Before you apply for a credit card, check out the advantages and disadvantages of using them.

Pros

1. They enable you to make payments and purchases and repay the loan later.

2. You can access fast cash through cash advance to your phone or from your nearest ATMs for emergencies.

3. They enable users to invest at home and abroad without leaving their country.

4. There are many rewards for different card users.

5. Credit card loans get approved faster than other bank loans.

6. Interest on credit cards is lower than on other loans.

Cons

1. If used irresponsibly, they can lead to huge debts.

2. Some banks charge high penalties for late payment and over-limit use.

3. Low-income earners are not eligible for most credit cards.

Legal regulation of the credit card loan market in the Philippines

All banks and lending bodies are registered by the Securities and Exchange Commission (SEC). The lending company regulation act (R.A. No. 9474) and the Bangko Sentral Ng Pilipinas (BSP) regulate the lending companies to protect customers against unreasonable interest rates. Before registering a bank or other lenders, the SEC ensures adherence to the set rules and requirements. The latter include written lending terms, which clearly state the interest and additional charges to prevent lenders from enticing borrowers with attractive perks with hidden exorbitant charges. SEC plays the role of regulating the market by keeping lenders with a get-rich-quick scheme at bay.

The Lending Company Regulation Act (R.A. No. 1974). Also known as the lending and regulation act of 2007, the R.A. was signed by the president to regulate the establishment of lending companies. The act places its operations in a sound, efficient and stable condition to offer optimum advantages to borrowers. It also lays down the minimum requirements and standards under which the companies should operate to mitigate undue advantage on the borrowers by the lenders through unreasonable interest rates.

Among other things, the act:

• Explains what a lending company is and list the institutions that qualify as lenders.

• States how a lending company should be organized

• States that the minimum capital requirement for lending companies is ₱1,000,000.

• Stipulates that the citizenship requirement of lenders is that Filipino citizens should own at least 51% of the stocks.

• States that the interest rate on loans can be agreed upon by the lending body and the borrower but must comply with Republic Act No. 3765, also known as the "Truth in Lending Act."

The Bangko Sentral Ng Pilipinas (BSP). BSP is the central bank of the Philippines, with a board that controls the financial system in the country. It ensures price stability and efficiency in the payment system; PSP protects the borrowers by performing the following duties.

1. Formulates and implements the policy in banking and credit businesses to maintain price stability.

2. Oversees payment and settlement systems and financial infrastructures to foster prudent practices by lenders.

3. Ensures banks and other lending bodies only collect what they state in their terms from borrowers.

4. Sets the fees and interest a lender should get if they are found operating outside the set regulations.

The real cost of a credit card loan

Credit card loans are convenient and enable you to make purchases, access cash, invest, and pay later. Other than the monthly or annual fee on loans borrowed, there are more charges on different credit cards. Investing in all the costs you will incur while using your credit cards for groceries and other purchases is essential. Here are some of the expenses you may encounter.

1. Annual fees. Different grocery store credit card types attract different annual fee amounts. Most cards offer a waiver on the annual fee for the first year, while others have it waived for life. When choosing a credit card, consider a no-annual-fee card if it meets your shopping needs.

2. Balance transfer fee. You can transfer funds and balances from one credit card to another. The balance transfer attracts foreign transaction fees for international transfers.

3. Late payment and over-limit fee. Your credit card provider will charge you an interest rate for exceeding your credit limit or paying your loan late. However, there are some credit cards for groceries whose late payment and over-limit fees are zero.

Conclusion

Credit cards are a convenient way of investing, settling bills, and accessing loans for emergencies. With many cards in the market, it is crucial to analyze your options extensively and understand the real cost of using a credit card. You should also only make necessary purchases and borrow when in need to avoid unnecessary charges on loan interests and penalties. Usually, a credit card for groceries does not allow you to make other purchases. You can only make eligible purchases from groceries that accept certain credit cards. Besides, you can always check your eligible spend category to ascertain how much you can spend. Also, while some credit cards for groceries charge an annual fee, others have a fixed monthly plan fee which you have to pay at the end of a billing cycle.