Adulting is both a scary and exciting journey, especially for those who plan to build their credit history and achieve financial independence. For this, credit cards are one of the best financial tools you can use.
Applying for a credit card sounds intimidating and complicated, but fortunately, there are cards for beginners with no credit history yet. These starter credit cards may offer low credit limits or limited perks, but they serve their purpose—helping you build credit and manage finances better.
To help you choose your budgeting and spending partner, here’s what you need to know about credit cards for beginners in the Philippines.
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Looking for the best credit cards for first-timers? Since this is your first time, let’s trim down your options. Here are the things you should look for when choosing the best credit card for beginners in the Philippines:
Consider credit cards with annual fees not exceeding ₱3,000 to save money. Ideally, choose one with no annual fees for life.
If you get approved for a card with an annual membership fee, try to find out how you can waive the fees. Most credit card issuers set conditions for waiving annual fees.
For example, you may need to meet a minimum spend requirement, enroll a biller, or get a supplementary card. Ask your credit card issuer first before submitting your credit card application.
Before picking the best credit card for first-timers, focus on the two most common fees: late payment fee and overlimit fee.
You get charged a late payment fee when your payment is not posted on time, and an overlimit fee when you spend more than your credit limit. To avoid these fees, pay all your credit card dues on time and keep your credit card usage low.
Other fees you should keep note of include foreign transaction fees (if you’re traveling abroad), annual percentage rates, and balance transfer fees.
Most credit cards for beginners in the Philippines don't offer as many privileges as premium ones. Still, you can find cards with perks that appeal to you, whether you want rewards on shopping, travel, dining, or any other spending category.
Online personal finance platforms like Moneymax can also help you assess the best credit cards for starters based on your needs, according to HSBC Senior Vice President and Head of Marketing Anya Katigbak-Cajucom.
"If you're a beginner, they can provide you with the list of where you can apply for first-timer cards," Anya said. "Having a good relationship with the bank would also weigh in, and it's a big difference when you do have a relationship with the bank. Each bank, depending on the relationship, can provide you with your new card."
When choosing the best credit card for first-timers, find out which bank implements the best security measures. This way, you're assured there won't be any unauthorized transactions by hackers and scammers using your credit card account.
Look for crucial security features, such as the following:
