In a country where budgeting is a key skill, having a credit card that offers rewards can be a major advantage—if used responsibly. Whether you’re a frequent shopper or a travel enthusiast, the Philippine market offers a wide range of credit cards designed to help you get the most out of every peso you spend. In this blog post, we’ll explore some of the best rewards credit cards in the Philippines, and how you can choose one that complements your lifestyle and spending habits.

Why Get a Rewards Credit Card?

Credit cards are a common financial tool for Filipinos, but a rewards credit card specifically goes beyond convenience by offering attractive benefits every time you swipe or tap. Here are some detailed reasons why you might want one:

1. Maximize Your Spending
   • Points-Based Rewards: Earn points for each peso spent, which you can later redeem for vouchers, merchandise, or travel perks.
   • Cashback: Some cards offer a percentage of your spending back as a statement credit, effectively lowering your bill each month.
   • Miles: Ideal for travelers, certain cards convert your spending into miles you can use to book or upgrade flights.
2. Ease of Budget Tracking
   • Consolidate Expenses: Using one rewards card for the bulk of your monthly expenses (groceries, utilities, phone bill, online shopping) makes it easier to track where your money goes.
   • Monthly Statements: The bank sends you a breakdown of all purchases, which is helpful for financial planning and budgeting.
3. Exclusive Perks and Discounts
   • Dining Deals: Enjoy free appetizers, discounts on your total bill, or even free dessert at partner restaurants.
   • Shopping Privileges: Get access to special sale events, VIP shopping days, or additional discounts on top of in-store promotions.
   • Lifestyle Perks: Some cards include priority event access, presale concert tickets, or even free airport lounge passes.
4. Travel Benefits
   • Airline Tie-Ups: Earn miles or points faster if you fly with a partner airline.
   • Travel Insurance: Many rewards cards include complimentary travel insurance when you charge your flights to the card.
   • Airport Lounge Access: Business lounge entries can be included, making travel more comfortable.

Overall, if you’re financially disciplined, a rewards credit card can serve as an excellent tool to earn while you spend, provided you pay off your balance on time.

What to Look for in a Rewards Credit Card

Choosing the perfect rewards credit card from among the many options in the Philippines can be overwhelming. Here are the key factors you need to consider in more detail:

1. Rewards Structure
   • Points Earn Rate: Look at how many points or miles you earn per peso spent. Some cards give you 1 point per PHP 30, while others might offer higher rates for specific categories like groceries or restaurants.
   • Category Bonuses: Some cards multiply your points if you spend on certain types of purchases—such as x3 points on dining or x2 points on online shopping. Make sure these categories match your spending habits.
2. Sign-up Bonus
   • Points or Miles Boost: Many issuers grant a large points or miles bonus if you reach a spending threshold within the first 3 months or so.
   • Annual Fee Waiver: Some banks waive your first-year annual fee as a welcome gift, which can save you a few thousand pesos upfront.
3. Annual Fees
   • Cost-Benefit Analysis: An annual fee of PHP 2,500 might be worth it if the rewards you earn exceed that amount each year. However, if you don’t spend enough to justify the annual fee, look for a card with a lower or waived fee.
   • Fee Waivers for Spending: Certain banks will waive your annual fee permanently if you maintain a minimum yearly spend.
4. Interest Rates
   • Monthly and Annual Rates: If you tend to carry a balance, a lower interest rate may be more important than rewards.
   • Grace Period: Typically 20 to 50 days, the grace period allows you to pay off your balance without incurring interest. Aim to pay in full to truly benefit from rewards.
5. Additional Perks
   • Travel Insurance: Some cards come with travel-related coverage (e.g., lost luggage protection, flight delay insurance).
   • Purchase Protection: You might get extended warranty on electronics or insurance against theft or damage for items purchased with your card.
   • Balance Transfer Options: If you have existing card debt, a balance transfer promo can help you save on interest.

Top Rewards Credit Cards in the Philippines

Below are some well-regarded rewards credit cards in the Philippines. Each card offers a unique proposition, catering to different lifestyle needs:

Citi Rewards Card

• Reward Points: Earn 1 point for every PHP 30 spent on all purchases, with bonus points on dining, shopping, and supermarkets.
• Sign-up Promo: Citi often runs promotions that give substantial bonus points or free annual fees for the first year.
• Redemption Options: Redeem points for flights, shopping vouchers, annual fee waivers, or bill rebates.
• Why It Stands Out: Flexibility—you can use your points in multiple ways, making it a good all-around choice.

BDO ShopMore Mastercard

• Reward Points: Specially designed for shopping, especially within SM malls, earning SM Advantage points on eligible purchases.
• Promos and Discounts: Exclusive sales at SM Department Stores, Watsons, and other SM Retail Partners; occasional 0% installment deals.
• Redemption: SM Advantage points can be used directly at SM outlets to pay for purchases.
• Why It Stands Out: Seamless integration with the SM ecosystem, making it a must-have for families who often shop or do groceries in SM malls.

BPI Blue Mastercard

• Reward Points: Earn 1 point for every PHP 35 spent on any purchase—straightforward and easy to track.
• Installment Options: 0% installment programs for big-ticket items like gadgets, appliances, or furniture at partner merchants.
• Why It Stands Out: Simplicity and wide acceptance—BPI has a large network of partner merchants, plus its “Real Thrills” promos often deliver bonus points or freebies.

Metrobank Rewards Plus Visa

• Reward Points: Competitive earn rate (1 point for every PHP 20-25, depending on the specific promo), plus you can convert your points to pay your annual fee.
• Additional Perks: Frequent airline and travel promos, balance conversion options, and exclusive deals with partner shops.
• Why It Stands Out: Flexible redemption—use your points for travel, gift vouchers, or even to waive fees, making the card cost-effective in the long run.

Security Bank Cashback Card

(While this is technically a cashback card, it qualifies as a “rewards” card because you still earn benefits from your purchases.)

• Cash Rebates: Earn up to 5% rebate on groceries, fuel, utilities, and dining. This is an instant reduction on your bill—no need to accumulate points.
• Annual Fee Waiver: Possible if you meet a certain annual spend requirement.
• Why It Stands Out: Straightforward and immediate savings—you see your rebates reflected directly in your monthly statement, which can be simpler than juggling points or miles.

How to Maximize Your Rewards

Earning rewards is only half the battle; you also need to use them wisely. Here’s how:

1. Focus Your Spending
   • Centralize your recurring and large expenses on one rewards card to accumulate points or rebates faster.
   • If you have a secondary card, use it only for specific categories where it offers a higher earn rate.
2. Take Advantage of Sign-up Bonuses
   • Time major expenses (like a new laptop or home appliance) within the first few months of getting the card to meet the spending threshold for bonus points or a free annual fee.
   • Monitor the bank’s promotional calendar to optimize when you apply.
3. Track Promotions and Seasonal Deals
   • Subscribe to your bank’s email newsletter or follow their social media accounts to stay updated on limited-time promos.
   • Keep an eye out for holiday sales, back-to-school deals, or travel seasons with higher earn rates or discounts.
4. Pay in Full
   • By avoiding interest charges, you effectively keep the rewards you’ve earned. Carrying a balance negates the benefits, as interest can quickly exceed the value of the rewards.
5. Redeem Wisely
   • Compare redemption rates: 5,000 points might get you a small gift item or a bigger discount on flights. Choose the redemption that offers the highest monetary value.
   • Consider travel redemptions if you’re a frequent flyer—air miles can be quite lucrative if used for long-haul flights or upgrades.

Potential Drawbacks to Consider

While rewards credit cards can be incredibly beneficial, you must also be aware of potential downsides:

1. High Interest Rates
   • Rewards cards often have higher interest rates than basic or low-interest credit cards. If you carry a balance, the added interest can quickly overshadow any rewards.
2. Annual Fees
   • Premium rewards cards with generous perks may charge higher annual fees. If you don’t spend enough to offset this cost or if the fee isn’t waived, you could end up paying more than you earn.
3. Overspending
   • The allure of earning more points or cash back can tempt some cardholders to spend beyond their means. Always stick to your budget and don’t buy things just to earn points.
4. Complex Terms and Conditions
   • Some rewards programs have blackout dates for travel redemptions, category restrictions, or expiration dates for points. Make sure you understand the rules so you don’t lose your benefits.
5. Limited Acceptance
   • While most major credit cards are widely accepted, certain smaller establishments or online merchants might have additional charges or not accept specific card networks.

Is a Rewards Credit Card Right for You?

A rewards credit card is an excellent choice for Filipinos who:

• Pay Their Balance in Full: If you clear your balance every month, you can take advantage of the rewards without the burden of interest payments.
• Have Targeted Spending: You know exactly where your money goes—groceries, fuel, online shopping—and can leverage cards that offer bonuses for those categories.
• Value Travel Benefits: Frequent flyers or those dreaming of their next travel adventure can accumulate air miles more efficiently.

On the other hand, you might want to reconsider if:

• You Often Carry a Balance: The interest charges from rolling over a balance can eat up any rewards you earn.
• You Have Irregular Spending Patterns: If you can’t meet minimum spends for sign-up bonuses or can’t optimize category spending, the card benefits may be underutilized.
• You Prefer Simplicity: If managing multiple cards, points categories, or redemption rules seems too complex, a low-interest or no-annual-fee card might be a better fit.

Final Thoughts

The Philippine credit card landscape offers plenty of options for anyone looking to earn rewards from everyday spending. From points-based to cashback and travel-focused cards, there’s something for every lifestyle. To get the best out of a rewards credit card, remember these key tips:

• Choose a card that aligns with your spending patterns—if you shop at SM regularly, consider a card tied to SM Advantage points; if you travel often, go for a card that earns miles.
• Utilize sign-up bonuses and promotions—these can significantly boost your earnings, especially in the first few months.
• Pay off your card balance on time to avoid interest charges, which can quickly erode your rewards.
• Stay organized by tracking points expiration dates, promotional periods, and any changes in terms and conditions.

Ultimately, a rewards credit card can be a valuable financial tool that pays you back for your regular purchases. Use it wisely, be mindful of fees, and stay disciplined, and you’ll be on your way to maximizing your spending in the Philippines—earning perks along the way!