The costs of flights and lodging can pile up when traveling, especially if you plan to stay for a long time. When you use a credit card, you earn reward points as you spend money that you can redeem later for miles or accommodation. By doing this, you can travel to more places while saving money.

What is a travel credit cards?

A travel card is a reward card explicitly designed for frequent travelers who wants to earn points or miles while they do it. These cards often offer higher rewards rates on travel purchases made at restaurants and hotels, as well as other places where you might go on vacation.

They also sometimes offer special bonuses if you book your trip through the card's affiliated website or app. These cards also provide benefits such as airline point accumulation, airport lounge access, free checked baggage, and many more that help you save on travel expenses.

How can I borrow a loan using a credit card?

You can apply for a credit card loan via email, phone, online, mail, or in person at a bank branch. However, you must have the necessary conditions, such as age, proof of identity, and income. If you meet these conditions, you can apply for a loan as follows. First, you must create an account with the financial institutions you wish to borrow money from. Second, you must supply basic information about yourself and your financial condition. It may contain information about your income and expenses, as well as any existing debts. Finally, review your information, checking on the charges the card attracts like annual fee and tap the Submit button to complete your application. Your lender will review all the information you have provided and approve or deny your application, depending on it. If you are approved, they will send you a confirmation email with advice on how to pay on time each month to prevent late or missed charges like the annual fee and how much interest you will owe at the end of each billing cycle.

How to choose a travel credit cards?

When you are looking for a travel card, there are many things you need to consider. The first thing is the type of travel you want to do. If you want to stay in hotels, one of the best cards should offer travel rewards for money spent on hotels. If you plan on staying in hostels or camping out during your trip, it may be better to go with a card that offers great rewards for gas purchases and dining out. Another option is to choose a card that has no foreign transaction fees and comes with insurance when traveling abroad. Then, examine whether the card you selected has additional costs, such as late payment or annual fee, because these fees may have you pay extra in loan repayments.

How to apply for a travel credit card?

Each card offers a distinct set of exclusive perks, so it is vital to analyze them all before determining which one is best for you. You must also meet several conditions before applying.

Pre-qualification

To qualify for travel rewards credit card in the Philippines you must:

• Be a citizen or a foreigner with a working permit.
• Be 18 years old and above.
• Have a valid Philippine passport, ID card, or driver's license.
• Have a stable income source.

Application

You can apply for your card online if you fulfill these qualifications. Follow these steps:

1. Go to the bank's website.
2. Click on the Apply Online button.
3. Fill in the required details, including your name, email address, address, and contact number.
4. Click on Continue.
5. Enter your CVV2 code that is on the back of your card and click on Continue.
6. Choose the card type you want to apply for, and then fill in the required details to

How to repay a travel credit cards loan debt?

Getting hotel credit cards with travel rewards gives you access to a wide range of new chances and increases your savings. Since you may use these cards for travel expenses like flights, hotels and rental cars, they are a great way to earn rewards while you are away from home.

Travel cards also come with several benefits that make them worthwhile to consider while selecting one. However, you must check your statement credits monthly to repay the debt incurred to improve your credit score and avoid additional expenses such as foreign transaction fees or late payments.

You can repay your travel card loans as follows:

1. Visit the lender's website.
2. Log in to your account.
3. Click on the Repayment or Pay bills.
4. When you are on the repayment page, enter your card number, account number, and security code (if applicable) into the appropriate fields.
5. After entering all these details, click Submit.

Pros and cons

You can use travel credit cards to pay for things like flights, hotel collection bookings, and prepaid fine hotels when you are on vacation or even if you are going on a business trip. They can also be helpful for people who want to save up for their next big trip, especially those who travel often and want something that will give them extra spending power while they are away.

However, before you apply for one, you should know the advantages and disadvantages of using these travel cards.

Pros

• You get points for every purchase.
• You can use a travel card anywhere in the world and any currency.
• You can redeem points for cash or miles or transfer them to another card.
• You do not need to carry around an international currency converter or other foreign money tools.

Cons

• If you do not pay it off monthly, you pay interest on the balance.
• If you repay less than the minimum monthly payment, you will receive a late fee.

What are the major travel credit cards?

A travel card is a great way to pay for your trips locally or globally. When you use the card, you can receive annual ultimate rewards and bonus points that you can redeem for cashback.

Citi PremierMiles Mastercard®

By paying an annual fee of ₱5,000, you can get this travel card with a welcome bonus of 30,000 never-expiring miles. The annual fee is waived for the first year, and you must earn at least ₱360,000 per year to qualify. You can even ask the customer care whether they have your preferred metal card design.

Qualifications

To qualify for this card, you must be over 21 years old, a Filipino citizen or a resident foreigner with a valid local billing address. You must submit a valid taxpayer identification number (TIN), SSS, GSIS, or UMID number, government-issued ID with a photo and a signature.

If employed, you must also provide a certificate of employment with the salary issued within the last two months. However, if you are self-employed, provide your business's most recent income tax return .

Benefits and features

• Get one premier mile for every ₱30 you spend.
• Convert your miles to airline miles by 1.6 premier miles equaling one mile for future travel.
• Redeem your cash credits for ₱1 per 5 premier miles, which you can apply to your next purchase or applicable local sales tax.
• Enjoy miles that never expire and can be used whenever you want.
• Enjoy VIP lounge access at select lounges at home and abroad with a free priority pass membership by DragonPass that includes two complimentary visits per membership year.
• Charge your airline tickets to Citi premier mile and get protected for up to ₱1 million.
• Shop confidently, knowing that your travel purchases charged to your card are protected from accidental loss for 30 days from the date of purchase.

Metrobank Travel Platinum Card®

Earn 3X rewards points on all overseas eligible purchases, hotel stays, and plane tickets with this Platinum Visa travel card. One mile is worth ₱17 and entitles you to limitless airport lounge access and exclusive travel bargains.

Qualifications

To qualify for this card, you must have a photocopy of any valid photo ID with your date of birth and signature, such as a driver's license, TIN ID, UMID, PRC ID, or passport. You must also have a copy of your latest three months' paycheck stubs from the date of application, your most recent Audited Financial Statement (AFS) with a bank or BIR stamp or the alien certificate of registration (ACR) if you are a foreigner.

Benefits and features

• Get VIP concierge service around the clock.
• Pay quickly for your utility payments.
• Use low-interest installment payments while using balance transfers.
• Use the 0% installment option to pay for major eligible purchases over 24 monthly installments.
• Enjoy a waived annual fee for your first assigned supplemental card.
• Enjoy faster transaction speeds without needing to sign for recurrent travel purchases of ₱2,000 or less and annual hotel savings benefit where applicable.
• There is no need to reserve ahead of time to find your flight at over 950 airport lounges globally.

PNB-PAL Mabuhay Miles NOW Mastercard®

With this card, you can get cash up to 50% of your credit limit from BancNet and PNB ATMs nationwide at a waived annual fee. You can also enjoy low-mile conversion and world-assist concierge service and even check the rental cars booked.

Qualifications

You must be between the ages of 21 and 65 to be eligible for this card. Furthermore, you must earn more than ₱2,400,000 each year. A recent one-month payslip, ITR, and a photo-bearing government-issued ID with a signature, such as a driver's license, passport, Ecard TIN, SSS, UMID, company ID, or a proof of employment specifying gross income, date hired, and position if employed, are required too.

If you are self-employed, you must have a recent payslip or driver's license, passport, Ecard TIN, SSS, UMID, utility bills such as energy, telephone, or a credit card statement. If you are a foreign citizen without a primary card or a non-depositor, you must provide a passport, a Special Resident Retiree's Visa (SRRV), an Alien Certificate of Residence (ACR), billing paperwork, or an active Philippine Retirement Authority ID (PRA).

Benefits and features

• Earn rewards points and redeem them for Mabuhay miles at one point for a one-mile rate.
• Earn 2,000 Mabuhay miles as a welcome bonus rewards and an additional 10,000 Mabuhay miles for PAL travel purchases.
• Get priority check-in at any of the PAL business class counters.
• Enjoy travel assistance, medical concierge, hotels and rental cars services are available.
• Spend securely with mastercard card protection and enjoy access to airport lounges with Airport Experiences (MCAE).
• Enjoy a waived annual fee for all PNB supplementary cards.
• Use it for contactless payments and choose between single and multi-currency invoicing.

RCBC AirAsia Credit Card

As you pay your bills, you earn non-expiring rewards but at a ₱3,600 annual fee if this is your primary card and ₱1,00 for a supplementary card. You can only redeem points if they are over 3,300, which is equal to ₱500.

Qualifications

For your RCBC AirAsia credit card to be approved, you must be a principal cardholder between the ages of 21 and 65. However, to qualify as a supplemental cardholder, you must be between the ages of 13 and 65. A working contact number, valid ID, passport, UMID, or driver's license are also required.

If you are employed, you must additionally produce your most recent W2 with a BIR or bank stamp, a bank statement with the monthly pay amount displayed, or your most recent income tax return (ITR) or W2 with a BIR or bank stamp. To preserve your AirAsia Platinum status after the second year, you earn points after you spend at least ₱5,000 on AirAsia products and services or ₱200,000 on non-AirAsia commodities. Otherwise, you will just be a basic card member.

Benefits and features

• When you spend at least ₱20,000 for eligible purchases in the first 60 days of receiving your card, you will receive a welcome gift of up to 8,000 AirAsia points.
• Receive 4,000 AirAsia points if this is your secondary card.
• Earn AirAsia points faster for as little as ₱22 per spend even if it is a minimum two-night stay or at studio locations worldwide.
• Use AirAsia points for free flights or vouchers from Lazada, SM Gift Pass, and Grab.

HSBC Platinum Visa Rebate Credit Card®

If you already have a primary HSBC card and a yearly income of at least $500,000, you are eligible for this card. You can earn reward points from infinite cashback on transactions such as shopping, travel, insurance, and other services.

Qualifications

A valid ID, such as a driver's license, SSS/TIN ID, NBI clearance, or voter's ID, is required. You also need to provide utility bills from the previous three months that correspond with your permanent and primary addresses.

Benefits and features

Earn a 5% travel refund and a 1% rebate on insurance.

• Enjoy a one-year annual fee waiver.
• Take advantage of free Purchase Protect insurance coverage.
• Enjoy a 6% discount on your first Caltex transaction as you travel and a 3% rebate on other Caltex fuel purchases during the year.
• Use contactless travel rewards credit cards instead of swiping when paying for your transactions.

Security Bank Platinum Mastercard®

With this card, you can easily cover travel expenses, check the rental cars booked as you get free travel insurance, concierge assistance, car rentals, and fee waivers. You will also be given two free lounges each year, on all other existing purchases unlimited complimentary access for you and your two guests. You will also access over 1,000 lounges in 500 airports worldwide.

Qualifications

The Platinum Mastercard from Security bank requires you to be a citizen and resident of the Philippines. You must also be between the ages of 21 and 65 for a principal cardholder and employed or self-employed for at least three years. You must also have a minimum gross annual income of ₱780,000 and a landline phone number.

If you are self-employed, you must have a Security Bank depositor for at least a year and possess a government-issued photo ID, an ITR, a business permit valid for two years, an AFS, and DTI/SEC registration. You must have a signed one-month payslip, COE, or ITR from your employer if employed.

Benefits and features

• You have access to hundreds of airport lounges worldwide.
• Enjoy exclusive, automatic cashback offers from participating international merchants.
• Get up to ₱200 in protection for online eligible purchases through Mastercard E-Commerce Purchase Protection.
• Get unrestricted entry to Terminals 1 and 3 of the NAIA's Marhaba Lounge.

EastWest Singapore Airlines KrisFlyer Platinum Mastercard®

Earn KrisFlyer miles as you fly and enjoy a variety of benefits with this travel rewards credit card.

Qualifications

You can be a foreign resident or a Filipino citizen. You must be over the age of 21, have a working phone number, and a legitimate ID with your photo and signature, such as a passport or driver's license. You must also provide proof of income, such as a certificate of employment or the most current BIR form 1701/ITR if employed.

Benefits and features

• Enjoy a welcome bonus of 3,000 KrisFlyer miles for accumulating ₱100,000 in retail spending within three months of card activation.
• Enjoy a 5,000 KrisFlyer mile anniversary bonus for every ₱100,000 in accumulated retail spend within 12 months from account opening and every 12 months after that.
• Enjoy priority PassTM membership.
• Enjoy two complimentary visits per year with your accompanying guest and you can even enjoy prepaid hotels booked through this travel rewards credit card.
• Experience comfort in one of the world's more than 1,300 airport partner lounge network and enjoy affordable baggage fees and more at one select qualifying airline.
• Get up to ₱20 million in free Comprehensive Travel coverage like lost luggage insurance with travel purchases for you and your family.
• Gain unrestricted access to more than 1,000 LoungeKeyTM airport lounges worldwide if your flight is delayed using your Mastercard® flight delay pass.
• Enjoy secure transactions because the card contains an embedded EMV smart chip that prevents duplicating your card details when you make a transaction.

UnionBank Cebu Pacific Gold Credit Card®

Travel as you earn Go Rewards points with every spend and redeem for free flights or statement credit for travel purchases annually.

Qualifications

You need identification documentation, such as a passport, UMI, GSIS ID, or professional Commission ID to get this card. You also need proof of income, such as your most recent credit statement, the ITR from the previous tax year, and the last three months' worth of paystubs.

Benefits and features

• For every ₱200 spent, you earn one Go Rewards point.
• When you use your card to make a purchase, you earn one Go Rewards point for every ₱20 spent.
• Earn one Go Rewards point for every 100 pesos spent on Cebu Pacific.
• Access Go Rewards and Cebu Pacific sale events.
• Enjoy the automatic crediting of points.

BPI Visa Signature Card®

For this card, the first year's annual fee is free, and subsequent years cost ₱ 5,500 with this rewards credit card.

Qualifications

For proof of identity, you need a valid photo ID, such as a passport, driver's license, voter's ID, SSS, GSIS ID, BIR, TIN ID, PRC ID, postal ID, or company ID. You also need a duplicate of your credit card statement from a different bank as proof of income.

Benefits and features

• Enjoy 50% off for dining, lodging, recreation, and wellness facilities all year.
• Earn one reward point for every ₱20 spent and use them to get miles, hotel credit, or gift certificates from top retailers.
• Access the airport transfer program, Visa's 24/7 worldwide concierge, car rentals, airport meet and greet immigration services, hotel loyalty programs access, luxury hotel collection and enjoy Uber VIP status to enhance your travel experience.
• Get up to ₱20 million in free travel accidents and inconvenience travel benefits when flying, driving, or taking the ferry.
• Enjoy a currency transaction fee of only 1.85%.
• Get preferential exchange rates on foreign transaction fees and currencies for your international travels.
• Get special travel benefits from Ayala Land, Ayala Hotels and Resorts, GlobeTelecom, and AC Motors.
• Use the NAIA 3's Pacific Club Lounge without charge.

Maybank Platinum Visa

Travel while earning 1% cashback on international purchases at an annual fee of ₱3,500 with this rewards card.

Qualifications

To be eligible for this card, you must be a Philippine citizen aged 21 to 65. You must also have a TIN ID, SSS ID, passport, driver's license, company ID, or GSIS ID, as well as a TIN ID, SSS ID, passport, driver's license, company ID, or GSIS ID.

Benefits and features

• Enjoy lower service fees.
• Enjoy foreign transaction fees of 1.80%.
• Use the card in approximately 20 million locations.
• Take advantage of exclusive savings and benefits both locally and internationally.
• Enjoy golf privileges globally with access to 100 golf clubs in 23 countries.Earn one TreatsPoint for every ₱25 spent and use it to get cash, credit, or miles.

Legal regulation of the credit card loan market in the Philippines

The credit card loan market in the Philippines is regulated by the Bangko Sentral ng Pilipinas (BSP). BSP requires banks to disclose the following information to each of their existing and potential credit cardholders:

• Finance charges for unpaid sums after the due date.
• Additional costs include membership, renewal, processing, over-the-limit, collection, credit investigation, and attorney fees.The number of installments, the amount, and the due dates or payment schedules necessary to repay the debt for installment loans.

The BSP also has several laws and regulations that govern the country's credit cards lending practices. The Philippine Credit Card Law (RA No. 10870) is one of them. RA No. 10870 regulates credit cards. It also aims to comply with international best practices and advance an effective payment system, while governing all credit card issuers, acquirers, and transactions.

According to RA No. 10870, the BSP has the authority to establish reasonable charges like annual fee and issue regulations. The law also states that all banks should adhere to specific regulations when offering and selling cards to customers and hold licenses from the Bangko Sentral ng Pilipinas (BSP). Financial institutions should also provide cardholders with information, such as transaction fee, interest rates, fees, and penalties for late and defaulted payments. They should also offer a thorough justification and a precise explanation of how all costs are calculated. Banks must also give cardholders at least 90 days' notice before changing how the outstanding balance is calculated or the fees the lender will charge to the cardholder.

The real cost of a travel credit card loan

Travel card loans are a great option for people who want to borrow money for a vacation but do not have the credit score they need to get approved for a traditional loan. You can apply for a travel loan if you have an active credit card with enough available credit.

There are some drawbacks of using your card as collateral, though. It will take longer to pay off the loan if you do not have a good payment history, which might affect your ability to get approved for future cards or loans. Additionally, there are costs like the annual fee associated with taking out a travel loan. The interest rates on these loans are higher than those of traditional loans, and they may also have additional costs like late payments or default penalties.

Conclusion

Travel credit cards help you get more out of your travels by allowing you to make payments for flights, hotels, and other travel-related expenses. The best travel credit cards offer rewards programs that can help keep you motivated to use them. They also provide a way for consumers to build up their credit while on the road. In addition, they can help you manage your finances while away from home so that you do not have to worry about what will happen if something happens at home, like an emergency at work or home that prevents you from making a bill payment. Nevertheless, before applying for a travel card, make sure you understand not only its pros but also its drawbacks.