Women in the Philippines are becoming more aware of the necessity to use credit cards because of recent changes in credit card legislation and regulations. The awareness is partly due to the Equal Credit Opportunity Act, passed in the United States in 1974. The act has resulted in gender equality, with more women enjoying the same financial freedom as men.

Additionally, there are a lot of reasons why women, especially single mothers or those with low incomes, can benefit from having credit cards. Having a credit card makes life easier. A woman needs credit cards to cater for everyday bills. She requires a credit card to purchase clothing and school supplies for her children on time. She also requires a credit card when she wants to go out and unwind with friends or herself.

A woman can also use a credit card to keep track of her monthly spending. She can take accountability for her earnings and the amount of credit card debt she accumulates over time. As a result, she will avoid taking on additional debt.

What is a women's credit card?

Credit card for women enables them to get the financial experience required to build credit and make purchases independently. It is a means for women to gain financial independence as they make their own financial decisions.

Whether you are a boss woman, a savvy, or a stressed-out unemployed mother, it makes no difference. You can obtain credit if you make the appropriate financial decisions to meet your demands. A women's credit card will help you establish your credit and provides extra money in your pocket each month, thus allowing you to pay all your expenses easily.

How do you choose the best women's credit card?

Inappropriate use of credit cards might lead to financial troubles. As a result, as more women sign up for the right credit card, sometimes, due to peer pressure from the pop culture, it becomes critical for them to choose one that they can afford to pay off while staying within the credit limit.

When selecting a women's credit card, keep the following factors in mind:

Consider what you want

Before shopping for a card, you need to know what card you want. Do you want a rewards card or just a no-annual-fee card? Do you want to use the card abroad too? Or are you simply looking for a balance transfer option? Are you looking for a card that improves your personal finance, credit scores, or just access to funds that will increase your household income?

Consider your credit history and limit

It will be difficult for a borrower to find an appealing offer from a bank if they have bad or no credit. Instead of utilizing a credit card, you should consider applying for an unsecured loan or line of credit. However, if your score is good or rising, you shouldn't have trouble locating a good card.

Consider the different choices of lenders

Many banks provide women's cards with various incentives, so it pays to browse around. A financial institution may offer better deals than others depending on where you live, your level of income, and the type of account history you have with them.

Consider the reward points

Before applying for the card, be sure it offers the incentives you choose, such as cashback or travel rewards. Examine all the terms on the cards carefully before deciding which ones are most important for achieving your objectives because some cards may offer more flexible points than others.

Consider there is an introductory period

If you want a card with an introductory term, look for one that offers 0% interest on purchases and balance transfers for at least 12 months. It allows you to pay off your debt without incurring further interest charges.

Consider other costs involved

Most credit cards will offer you a cheaper interest rate and other additional benefits if it is an annual fee. You should always ensure that the benefits you receive in exchange for your annual fee are worthwhile. The APR rate is also crucial. It calculates how much interest you will pay each year if you do not repay your debt in full each month. It can range between 10% and 24%, so compare several credit cards before considering which one to get.

Consider whether the reward changes over time

If so, how frequently? When you factor this, it is significant because if you use your credit card frequently, it is nice to know that you will be able to earn rewards consistently. You will also want to ensure that the reward amount is worth your time and effort, so compare it to other cards and see if it exceeds them.

Consider whether there are any additional advantages

Many credit cards provide additional benefits, such as purchase protection and travel insurance, which can be extremely beneficial to cardholders. These may not be as important as the rewards themselves, but they should be considered when selecting a new card.

How to build credit with a credit card?

Using a credit card might simplify the process of establishing credit. Although it might take some time, it is possible. Credit cards provide convenience and saves on cost while also diversifying your finances. Therefore, to help you build your credit, use these six tips.

Pay your bills on time

It is crucial to pay your bills on time if you want to build good credit. If possible, avoid paying less than the minimum balance due, because if this becomes a habit, you will pay more interest over time. Check to see if there are any penalties for making a late payment. Remember, you do not need to pay all the debt in full, but keep making the minimum payment. It will make great strides in repaying faster, earn more points, and increase your credit limit. If you miss a payment on the card, the provider will report it to the credit bureaus, which will lower your credit score.

Keep accounts open, especially if a loan is pending

The length of your credit history has an impact on your credit score. So, the longer you keep an account open, the better your score will be. When you close an account prematurely, it can harm your overall credit score. It does not mean that you should keep all accounts open indefinitely; just make sure they are in good standing before closing them down so they do not hurt your score more than necessary. Check to see if they have any outstanding payments. If an account becomes delinquent, it is critical to work with the creditor to pay off any pending or defaulted loans.

Determine how much debt you can afford to take on by calculating your budget

You must determine how much debt you can bear. If you are new to credit cards and have little experience, it is best to start small. Calculate your budget to see how much debt you can afford to take on, and then stick to it. Never spend more than what is in your bank account or credit limit. If you do, it will be extremely difficult for you not only to repay that debt but also to build good credit in general.

Don't max out your credit card

Do not overspend on your credit card. If you utilize more than your limit, you risk damaging your credit score because you are utilizing an excessive amount of debt at once.

Don't open too many new credit cards at once

Although it may be tempting, opening many new accounts at once can damage your financial situation. Too many new accounts opened at once can give the impression that you need money urgently without paying it back first. Later on, it will be more challenging for you to obtain a loan approval. Instead, focus on building a solid credit history with a few cards you can afford to pay off in full each billing cycle.

Be aware of the type of credit you're using

Understanding what type of credit card you have been approved for is critical. For example, if your new card is unsecured, which means there is no collateral, your payment history must also be excellent. Additionally, you should refrain from exceeding your credit limits; otherwise, it may lead to financial trouble, and the provider may close your account or require more collateral.

Types of women's credit cards

Many women's credit cards available allow you to earn rewards and redeem points based on your needs. These cards will allow you to save money on groceries or air miles. Additionally, they do not discriminate based on national origin, sex, or marital status. Therefore, it is a woman's legal right to have their own name on a credit card, whether they are married women, single mothers, or ladies wishing to purchase their first credit card. Additionally, these cards mentioned below have an available customer service that might provide you with more info as you continue to keep your payments up to date.

Here are the various top credit cards available to women based on their needs or profession.

• The Citi Cash Back Card offers up to 6% cashback on grocery purchases for savvy moms or young women who want the most value for the money. Furthermore, Citibank Online offers up to 2% cashback on all other purchases, including Meralco bill payments. In addition, all other purchases qualify for a 0.20% cashback. As a result, you may be able to save up to ₱15,000 in a single year.

• The AUB Classic Mastercard has no annual fee and no interest on new purchases, making it ideal for the frugal mom. These cards also allow you to set when to repay your bill, which can help you make timely payments.

• The Mercury Drug Citi Card will allow you to earn 1 point for every ₱200 spent anywhere and is perfect for the for the health-conscious woman. You will also receive 5x points for every ₱320,000 spent on Mercury Drug each month. When you need self care, use the 3x points earned on health, beauty, and wellness spending, which includes clinics, spas, gyms, and salons. Even if you make big purchases in another country, you will still earn 3x points on foreign currency transactions.

• UnionBank Lazada credit card will allow the affluent shopper to spend more as they earn more rewards. For every ₱200 spent on Lazada using your UnionBank Lazada Credit Card, you will receive 6X Lazada Credits. Since these ladies love shopping, they will receive additional savings on big sales and regular shipping discounts.

• For the foodie, HSBC Gold Visa Cash Back allows you to earn 5% cash back on dining purchases and 0% cash back on all other purchases. However, you are required to earn at least ₱200,000 annually.

• The Citi Prestige Card enables you to accrue points that never expire, making it ideal for female business owners or the boss ladies. You receive one ThankYou point for every ₱30 spent. You can also earn five times as many points when you decide to go see the world, spend money on foreign currency, as you dine or shop online. Additionally, a dedicated hotline and an international concierge service are available to you at all times.

Pros and cons of women's credit cards

Having the right women's credit card can go a long way. For instance, certain credit cards are better for people who travel frequently and spend a lot of money on hotels and plane tickets. Others are better for female consumers who prefer to pay off their balances rather than applying for new credit cards regularly to keep up with their spending patterns over time.

As a result, your needs will influence which one you select. Whichever card you choose, you must know its advantages and disadvantages to determine whether it is appropriate for your needs.

Pros

• You can get better rewards when you shop. You can increase the rewards you receive from your purchases using a woman's credit card. For instance, a woman's credit card might provide better benefits like discounts if you are a devoted Amazon Prime Video subscriber.

• You can receive more perks. A woman's credit card can provide extra benefits like extended warranties, travel insurance, or access to special events and deals, besides increasing rewards. These advantages make it simpler for women to obtain their desired things while maintaining their lifestyle preferences and financial stability.

• You can build a credit history. Providers design the card specifically with their users in mind. These credit cards are designed to help women become more financially independent by enhancing their creditworthiness. Using a credit card strengthens their financial stability and establishes credit in preparation for larger purchases like a home purchase.

• You can maximize your savings with special discounts. One of the best features of women's credit cards is the discounts. If you buy things frequently, it could result in significant savings. Additionally, it can assist you in saving money on regular costs like gas and groceries.

• You can build your credit with ease. Building credit is made easy with women's credit cards. Some cards are made specifically for women who want to use their personal information to apply for loans and other financial assistance.

Cons

• They are not easily accessible. The women's credit cards are often unavailable, mostly in the local area, and you might need to travel to another province to find one that suits your needs.

• They have high interests. The interest rates on these cards vary. If you miss a payment or pay late just once or twice, it could harm your credit score in future.

The main requirements for getting a women's credit card

Here are the main requirements for getting a women's credit card:

• You must have a good to excellent credit history

• You must be at least 18 years old

• You can't have any negative information on your credit report

• You must provide a valid identification like an ID or passport

How to apply for a women's credit card

You must first meet the bank's requirements to apply for a women's credit card. Then, at your preferred bank location, you can apply for a woman's card online, by phone, or in person.

Follow these steps to apply for a woman's card online:

• Navigate to the bank's website.

• Click Apply Now.

• Select Credit Card.

• Fill in the blanks with the required information.

• Press the Submit button.

How to repay a women's credit card debt

After your card application is approved and you use it to make eligible purchases, you can pay your bill online as follows:

1. Navigate to the bank's website.

2. Sign in to your account.

3. Click on the Make a payment option.

4. Fill in your billing information.

5. Click the Pay Now button.

6. When you are finished, click Submit.

Legal regulation of the credit card market in the Philippines

The Philippine Central Bank, known as the Bangko Sentral ng Pilipinas (BSP), oversees and regulates the credit card market. The BSP imposes several measures and regulations on credit card issuers and merchants to protect consumers from fraud, identity theft, and other forms of credit card abuse.

The BSP is also concerned about the country's widespread use of credit cards. Its policy is that credit card issuers must follow regulations to protect consumers from fraudulent and abusive practices.

These regulations include:

• Credit card companies can charge the specified fees for services such as cash advances and withdrawals, balance transfers, and other transactions.

• Credit card companies must give their customers an itemized statement of all the fees they will be charged.

• Credit card companies are forbidden from sending consumers unsolicited credit card applications.

• Credit card companies are prohibited from using unsolicited cards for online gambling and money laundering transactions.

• Credit card companies' employees must be trained to spot fraudulent transactions involving unauthorized credit cards.

• Credit card companies should report suspicious transactions or unusual patterns in account activity to BSP within one hour.

• Credit card companies must provide a written notice of an overdraft within five days of each use, including any amount paid for payment of taxes or charges imposed.

The actual cost of a women's credit card

It can be difficult to pay off your dining credit card debt, especially when you consider other expenses that contribute to the overall cost. These expenses include transaction charges, annual fees, balance transfers, or monthly payments. Here are some tips on how to pay off your debt quickly to reduce these costs.

The first step is to calculate the balance on your dining credit card. To obtain this information, contact the company and request your credit card statement. You can also go to their website and log in to your account to see how much you owe your provider.

Once you have determined what you owe, it is time to create a budget. Make a list of all the money that comes in and all the bills you have to pay.

When you know how much money you will have left over after monthly expenses, it is time to start paying down those debts. Every month, set up an automatic payment to go towards your credit card debt. It should be the exact amount due or higher.

When you pay off your loans on time or in full, you will be able to pay them off faster and avoid other fees such as late payment fees.

Conclusion

Women's credit cards have come a long way in recent years and there are many credit cards designed specifically for women. These cards protect women against identity theft, such as free credit reports and fraud alerts. They also provide women with the opportunity to build a good credit history. Furthermore, these credit cards provide special rewards for shopping at grocery stores. As a result, finding a card that meets your requirements, offers more rewards, and works with your finances is critical.