Rewards Credit Cards of March 2023

If you are a frequent shopper with a substantial purchase history, rewards credit cards are an excellent way to earn extra perks. Since many such credit cards provide extended warranties, annual incentives, and free travel insurance, you should do more research on the card you intend to use. Therefore, educate yourself on the numerous rewards programs and realize how to increase your chances of collecting bonus points before selecting the best rewards credit card.

What is a rewards credit card?

A rewards card gives points or miles for every peso spent. You earn these bonuses by making purchases with your card. The more you use your card to make purchases or transactions, the more you earn. Once you've accumulated enough points, you can redeem them for items such as gift cards or vacation discounts.

However, several factors determine the bonus rewards you'll receive on your card.

Annual percentage rate (APR)

APR is the interest rate on your credit card expressed as a yearly rate. The higher the APR, the higher the interest you'll pay on your purchases. Therefore, before selecting a reward card, ensure that your bonus will be worth the high APR. Check to see if the card allows you to divide eligible purchases into equal monthly payments via direct deposit or any other available payment method.

Cashback rate

You should use the percentage of your purchases you can recoup in reward points to decide whether the reward card is worthwhile. Therefore, when you use a bonus credit card, you may be able to earn more cashback than with other cards because the rewards rates are higher. Also, with a reward card, you can use your points to redeem cash credits, merchandise, and gadgets with an unlimited cashback match for single or combined purchases.

Rotating or customized category

Credit cards with customized or rotating bonus categories ‌have higher rewards because you earn them in specific areas of expenditure, such as supermarkets or gas stations. The disadvantage of some of these cards with rotating categories count on bonus points is that they often change every three months.

As a result, if you expect to use your card frequently enough each month, you should consider the bonus rewards it offers and whether the benefits they provide are worthwhile.

Types of rewards credit cards

Rewards cards are great ways to earn points, miles, or cash back on everything you buy. But which one is right for you?

The best cards have a lot in common: they offer a wide range of perks and benefits. But there are several most popular types of cards, each with its own advantages and drawbacks. Here's a closer look at the most popular types:

Cashback credit cards

With these cards, you may redeem points and earn cash rewards on every purchase you make, whether in-store or online shopping. Therefore, you have a lot of control over how much money you earn in return for your purchases. The amount you make depends on how much you spend and how long you hold the card. Some cards offer 3% cashback at select retailers, while others only offer 2%.

Other cards, such as the Security Bank Cashback Rebates Mastercard, offer customers 5% back on their transactions.

If you are a Filipino who always shops locally, you can get up to 5% cashback on essential eligible or existing purchases such as food, petrol, utilities, dining, and shopping with the Security Bank Cashback Rebates Mastercard. However, the payback is limited to a monthly maximum of ₱1,000. You cannot convert the rebates to cash or transfer them to another card.

Travel rewards cards

Travel rewards cards benefit cardholders who pay with it. These cards often help you save money on travel expenses, while some may provide additional perks. Many travel rewards cards offer sign-up bonuses, allowing you to check all the hotel or rental cars booked and other waive annual fees for the first year.

When you use your card to make eligible purchases, the retailer will often reward you with points or miles for every peso you spend. Some travel rewards cards, such as the HSBC Platinum Visa Rebate, offer special benefits to members of loyalty programs, such as airline miles or hotel loyalty programs.

The HSBC Platinum Visa Rebate allows you to receive a 1% rebate on insurance, a 5% rebate on retail and travel transactions, and a 0.50% rebate on all other transactions. With a Visa signature concierge, you can also enjoy a wide range of premium perks. These advantages include specialized ideas and assistance on travel, food, and entertainment at some of the world's most exclusive hotels. You must, however, have a minimum annual income of ₱500,000.

Business rewards cards

A business rewards credit card is similar to a personal card but is developed exclusively for organizations. Every award earned by the company is used to cover work-related expenses such as office supplies, meals, and travel. The best small-business credit cards provide extensive rewards programs and expenditure reporting features.

There's no minimum spending or maximum rewards. You enjoy bonuses you can use to save on office-related costs, vehicle rental insurance, a travel statement credit, access to hotel loyalty programs, and annual ultimate rewards hotel credit as they travel.

The rewards customers gain from spending on business-related expenses with a business reward card, such as the Unionbank Corporate Visa Card, can assist you when you have bills due but are still waiting for your clients to pay their invoices, cover emergencies, or other expenses that may come later. The corporate Visa card from Unionbank offers 0.5% cash rebates on everyday purchases, which are deposited into the company's corporate account. One can also use the incentives to pay for business travels by redeeming them as miles or hotel credit.

The Unionbank Corporate Visa Card enables you or your staff to automate cost reporting and management processes in over 29 million businesses globally. When you charge your airline tickets to this credit card, you will also have access to complimentary lounge access at NAIA Terminal 1 and 3, whether you are a local or global entry, as well as travel insurance of up to ₱5 million.

No annual fee cards

No annual charge is associated with these cards, and they usually provide substantial rewards rates with no APR or other credit card fees. If the benefits outweigh the costs, you can choose a plastic card with an annual fee that is waived for a limited time. However, after the waived time is over, the usual annual charge will apply.

You can also save money by using these free annual fee cards, such as the AUB Classic Mastercard, because annual fees can range from ₱1,000 to ₱5,000.

The AUB Classic Mastercard not only waives the account opening annual fee for life but also allows you to schedule when you want to pay your credit card bill. You can set a fixed monthly plan fee so that you don't have to pay the credit bill on a day when you don't have enough money. The Mastercard allows you to make travel purchases based on your credit worthiness.

You also get to spend your money on purchases with no interest. You also get one reward point for every ₱50 you spend. Along with these benefits, you also get reward points and Mabuhay miles with each ₱425 you spend on purchases earning you one mile. When traveling, you will also have other purchases unlimited complimentary access, entry to airport lounges, including Sky View, Pacific Club, and Pagss Premium. Additionally, there is no yearly cost for the additional cards you can apply for. You also earn points as you incur foreign transaction fees.

Balance transfer rewards cards

Since you pay high interest on your balance each month, these cards are excellent when you need to transfer money from a high-interest card to one with a reduced interest rate. As a balance transfer interest rates range from 0% to 2%, it can assist you in avoiding incurring considerable credit card debt. However, the amount transferred and the repayment period selected impact these rates.

Remember that you will have to pay less for your credit card payment during your installment term, the lower the balance transfer rate you receive. As a result, when you use a reward card, such as the RCBC Bankard Flex Visa, you can save more while paying a lower intro balance transfer fee. The qualifying balance transfers have a low monthly interest rate of 0.89 % for up to 36 months. However, ₱5,000 is the lowest amount that you can transfer.

Besides, you'll get additional points with this RCBC card of 1 point for every ₱50 spent at non-service shops, ₱125 on drugstore purchases, and ₱250 on utilities. Additionally, you receive twice as many points for every ₱50 spent in any two of the following categories: dining, transportation, apparel, or travel.

How to choose the best credit card for rewards

When shopping for a credit card with rewards, there are various factors to consider.

• Interest rates. The first thing to consider is how much interest the card charges. Some credit cards have low-interest rates, while others are high. Interest charges account for nearly most of your credit card payment costs. Other costs accumulate, such as transaction fees when paying your monthly cellular telephone bill, but high-interest rates may result in a higher cost each billing cycle.

• Bonus redeeming restrictions. Another critical consideration is whether the rewards program has any restrictions on how you may use your points. For example, if you want to redeem rewards for travel savings, be sure they offer more than just airline tickets — they should also offer hotels and car rentals.

• Benefits earned. You should also select a reward credit card with a variety of benefits. One characteristic of credit card rewards is that you can use it for earning and burning. Earning and burning means you earn bonus points as you spend money on eligible purchases and lower service fees.

• Appropriate for your needs. Then, choose a card that is suitable for your needs. Getting a travel reward card, for example, is not worth it if you are not a frequent flier. You may spend more money by paying the costs related to your card than the benefits you earn.

• Additional benefits. Finally, consider whether the card offers other perks besides its rewards program. Other benefits include welcome bonus points, increased loan limits, lost luggage insurance, unlimited complimentary access, hotel loyalty programs access, and decreased fees for accessing ATMs or completing international payments, such as the foreign transaction fee.

  For example, suppose you are traveling or relocating to another country. In that case, you can transfer your balance to a Chase Ultimate rewards card with a premier rewards program that allows you to redeem reward dollars for cashback, travel, and gift cards. In addition, to keep track of your credit health, Chase credit journey helps with real-time alerts. You can also use another provider other Chase ultimate rewards like the Hyatt credit card to access Capital One entertainment purchases.

How to maximize your rewards points

When you have finally chosen the best reward card for your needs, you can also maximize how you earn your rewards. Here are a few pointers to help you get the most out of your reward card.

• Instead of a store card, consider a credit card that pays cashback while you are shopping or making travel purchases annually. Compared to a store loyalty card, certain credit cards can reward you with additional points or miles for purchasing at specific stores.

• Make sure you always use your credit card where you may earn the most points or miles. You can maximize your points by utilizing your rewards card partner lounge network whenever you are traveling. When shopping online, you can also use your card's eligible delivery services as long as you don't exceed your credit limit. Therefore, you can accumulate additional points while continuing your regular purchases and enjoy all the cash rewards available.

• Look for bonus categories. Some credit cards offer bonus points for certain purchases, such as gas stations or restaurants. If you have one of these cards, try to gain as many bonus points in those areas as you can.

• Look for good deals. Some banks provide exclusive deals that allow customers to earn additional points when they use their credit cards to buy certain items. You will need to do some research to determine if this is an option for your specific bank and credit card —but it might be worth it if it means extra points.

• Pay off your debt in full every month if you want to use a rewards card regularly. Using a cashback credit card makes up for the increased interest rates on balances that aren't paid off in full each month. However, earning many reward points as possible may not be worth it in the long run if you do not pay down your balance.

How to redeem credit card rewards points

If you have a rewards card that earns points for purchases, you can redeem them for travel and other perks. When redeeming points from an airline or travel reward program, ensure you're using the card that issued the points to receive a maximum value for each point.

There are a few ways to redeem your rewards credit card. These includes:

1. You can use your rewards credit card to purchase flights, airline tickets, hotel stays, rental cars, cruises, and event tickets.

2. You can use your rewards card at the grocery store or gas station to purchase your points.

3. You can transfer the points to a partner airline or hotel or use them for gift cards.

4. You can use your points to purchase eligible products.

5. You can transfer the points to other rewards cards or use them for supermarket merchandise.

The main requirements for getting a rewards credit card

You must first meet the following requirements before you can enjoy all of the benefits of a rewards card:

• You must be a Filipino citizen or a foreigner with a valid work permit.

• You must be at least 18 years old.

• You must have a current Philippine passport, ID card, or driver's license.

• You must have a steady source of revenue.

• You must have genuine evidence of income, such as a salary from the last two months if you are working or your most recent income tax return if you are self-employed.

• You must have legitimate proof of residency, such as utility bills.

Then, if you meet these requirements, follow these steps to apply for your card online:

1. Go to the bank's website.

2. Click on the Apply button.

3. Fill in the required details.

4. Click on Continue.

5. Choose the card type you want to apply for.

6. Fill in the details as prompted.

7. Click Submit.

8. Wait for a confirmation message.

How to repay a credit card loan debt

When you make purchases and accumulate bonus points, you must pay back the amount used each month, including any costs. It allows you to increase your credit limit and improve your credit score.

You can repay your reward card loan online as follows:

1. Visit the lender's website.

2. Log in to your account.

3. Click on the Pay bills.

4. Select on Credit card loan

5. Select the reward card you want to pay for

6. Enter your payment amount, which should always be the amount you need to pay that month or higher.

7. Click Submit.

8. You will receive a confirmation that your loan has been approved.

Pros and cons of a rewards credit card

A rewards card has many benefits, including accumulating points you may redeem for gift cards and free trips. It is an excellent way to obtain freebies while ensuring you save money. These cards are also an excellent way to increase your credit score. However, before you enroll in one, you should know its disadvantages.

Pros

• Free rewards. The most obvious benefit of a rewards card is that you'll get free bonuses every time you use it. Most cards offer points or miles, but some offer gift cards or cashback. You can also redeem your points for travel expenses such as flights and hotels.

• Low fees. Compared to other types of credit cards, a rewards card often has low costs. These expenses include late costs, over-limit, balance transfers, and annual fees. Many reward cards do not have an annual fee, which means you will not pay interest on the money you spend with the card each year. If you want to save more as you spend, a reward card with no annual fee is preferable to the one having it.

• Sign-up bonuses. Some rewards cards come with generous welcome bonuses that allow you to rack up some points when you spend a specific amount of money on eligible purchases. Others reward you with welcome bonuses ‌that you can redeem up to a particular number of days, like 60 days from issuing the card or account opening.

• Additional benefits. These advantages vary according to the type of card and the bank that supplies it. An AirAsia Credit Card powered by RCBC Bankard, for example, entitles you to airport lounge access and other travel perks such as unlimited complimentary airport lounge access, hotel upgrades, and purchase insurance.

Cons

• Higher interest rates. You will need to put a lot of money into the account to gain substantial value from the rewards. More money from the credit limit means more APRs. Therefore, if you intend to use a rewards card to make a large purchase, such as a car or a home, calculate how long it will take before you can pay off those expenses with cash rather than plastic.

• Possibility for your statement credits to be affected. If you do not use your credit card frequently enough, you may reduce the amount your credit card company allows you to spend.

• Restrictions on rewards. There are frequent limits on the number of reward points you can collect before expiration.

Legal regulation of credit card market in the Philippines

The Philippine government has enacted several credit card regulations to safeguard Filipinos against unscrupulous credit lenders who aim to take advantage of their customers.

These include the BSP, Credit Information Disclosure Act, and National Privacy Commission.

Bangko Sentral ng Pilipinas (BSP)

The Bangko Sentral ng Pilipinas (BSP), or Central Bank of the Philippines, is in charge of monetary policy and monitoring financial institutions. It assures that all financial institutions follow anti-money laundering and terrorism financing rules, which require them to know who is issuing cards and what they are doing with them.

Aside from this oversight, the Consumer Act of the Philippines requires credit card issuers to disclose certain information about a credit card account. The information includes:

• Interest rates

• Yearly fees

• Other costs of using the card

• Any related fines, or penalties that might be imposed if you do not make your payments on time

As a result, credit card companies must reveal these details before you open an account and each month after that for as long as you use your card. If they do not meet these rules, they may incur penalties from BSP.

Credit Information Disclosure Act

The Credit Information Disclosure Act, Republic Act No. 8491, makes it illegal for businesses to market credit information about their clients without their consent. As a result, it is unlawful for businesses to represent their items as credit products when they do not have any credit products.

National Privacy Commission

If a person discovers that a corporation gained their personal information illegally or used it for marketing purposes without their consent, they can submit a complaint with the National Privacy Commission (NPC). The NPC will next review all complaints received and determine whether companies that marketed themselves as offering credit products broke those rules. If NPC discovers the businesses misrepresented themselves as selling credit cards when they did not, they will order those businesses to stop making false representations about offering such services.

The actual cost of rewards credit cards

Rewards cards are an excellent way to earn bonus points, miles, and other benefits when you spend money via your plastic cash. However, you may be unaware of charges associated with using these cards that may cause the repayment to exceed the benefits you receive.

The lender may charge you an application fee when you apply for this card. They may waive it for first-time users of a specific brand or card, but you should confirm the information before using it. The lender may also charge you a foreign transaction fee if you use your card abroad. These costs vary by card and nation, so double-check before leaving on your trip or making transactions abroad. The lender may also charge you an annual fee. They may waive the cost for the first year, but you must pay a yearly charge after that.

Additionally, if you use your card at an ATM that charges a withdrawal fee, you may be charged a cash advance fee for each transaction made with your card—even if it is only ₱5. Furthermore, most banks charge interest on purchases based on how much money you owe them at anyone time, which may vary from person to person depending on their credit history. As a result, the actual cost of a reward credit card loan is not only the interest rate you pay at the end of each billing cycle, but the extra charges you incur while using the card.

Conclusion

Rewards cards are great for people who want to earn cash back on their purchases, points, and miles for future travel or other incentives. One of the easiest ways to boost your bank account balance and accumulate points you can exchange for cash or other prizes is to use these credit cards.

You can also earn rewards by using credit card features such as shopping portals or loyalty programs that award points for visits to specific stores and restaurants. You may also obtain a new card with a low introductory rate, which will allow you to accumulate rewards immediately. Depending on your buying habits, you may save even more money using a credit card rewards strategy. As a result, while selecting the best rewards card for you, ensure that it is within your spending limit and offers rewards on categories you usually purchase.