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How Much are the Credit Card Interest Rates in the Philippines?

Venus Zoleta

Venus Zoleta

Last updated August 16, 2023

Earlier this year, the Bangko Sentral ng Pilipinas (BSP) raised the maximum interest rate on unpaid outstanding credit card balances to 3% per month or 36% per year. The maximum processing fee for credit card cash advances remains at ₱200 per transaction.[1]

On top of the constantly rising prices in the country, the higher cap on credit card interest rates and fees means another source of financial stress for Filipinos. If you're an existing cardholder, try to pay on time to avoid credit card debt.

Whether you're planning to apply for a new card or currently carrying one, here's what you should know about credit card interest rates in the Philippines.

What is the Finance Charge on a Credit Card?

The finance charge (sometimes referred to as the credit card interest rate) is the interest that banks make their customers pay for any unpaid balance carried over from the previous billing cycle.

If you pay less than your monthly due amount, your credit card company would charge interest on the unpaid balance. You’ll incur interest until you fully pay off your credit card’s outstanding balance.

Credit card providers in the Philippines compute interest rates based on a 30-day period. The interest rate will decrease or increase accordingly for months with less than or more than 30 days.

Note that you can still get charged with interest for certain credit card transactions even if you’ve already paid in full. Some of these transactions include cash advances and quasi-cash transactions (foreign currency or items that can be converted to cash like lottery tickets, money orders, gaming chips, etc.). That’s why you should read your credit card provider’s terms and conditions to know for which transactions you’ll be charged interest.

Related article: Save Money with These No Annual Fee Credit Cards for 2023

How is Credit Card Interest Calculated in the Philippines?

credit card interest rate philippines - how to compute credit card interest

To show you how to compute credit card interest rates in the Philippines, let’s use this example:

  • Current statement date: August 1, 2023
  • Next statement date: September 1, 2023
  • Previous balance: ₱10,000
  • Payment due date: August 21, 2023
  • Payment date: August 21, 2023
  • Amount paid: ₱5,000

🔢 Sample Credit Card Interest Computation

Step 1: Add the number of days after your current statement date (August 2) to the day before your payment due date (August 20). That's a total of 19 days.

Next, multiply your previous balance by 19 days.

₱10,000 x 19 days = ₱190,000

Step 2: Add the number of days from your payment due date (August 21) to your next statement date (September 1), which is a total of nine days. Deduct your payment from your previous balance and multiply it by 9.

(₱10,000 - ₱5,000) x 9 days = ₱45,000

Step 3: Add the number of days from your previous statement date (July 1) to your current statement date (August 1), which is 32 days.

Then add the balances from the two previous steps and divide them by the number of days from the previous to the current statement date (32 days).

(₱190,000 + ₱45,000) / 32 days = ₱7,343.75

Your total credit card finance charge for your current statement date is ₱7,343.75 Multiply it by the monthly interest rate of 3%.

The total interest incurred for your current billing cycle is ₱220.31. Add your remaining balance of ₱5,000. The current charge you'll see on your next statement date is ₱5,220.31.

What is the Cap on Credit Card Interest Rates and Fees?

The BSP issued Circular No. 1165[2] last January 13, 2023, which set the maximum credit card interest rates and fees in the Philippines. All BSP-regulated banks were mandated to implement the new credit card interest rates in the Philippines 15 days after its publication.

The cap on credit card interest rates and other fees is reviewed by the BSP every six months. Figures might change depending on the country's current economic condition.

👉 3% Credit Card Interest Rate Cap

 

Under the BSP Circular, credit card providers can charge only up to 3% monthly finance charge (or 36% annual interest rate) on the cardholder's unpaid outstanding balance. The credit card interest rate cap applies to straight payments and cash advances. Previously, the average credit card interest rate in the Philippines was 2% per month or 24% per year. 

In addition to raising their credit card interest rate to 3%, banks are also required to share with their clients a detailed yet simple, easy-to-understand explanation of how they compute their fees and charges.

👉 1% Credit Card Installment Rate Cap

A separate interest rate cap will be charged on installment plans, including balance transfer and balance conversion. For such installment payments, banks can charge only up to a 1% monthly add-on rate.

👉 ₱200 Credit Card Cash Advance Fee Cap

When you make a cash advance, you'll be charged a fixed fee of only up to ₱200 per transaction. According to the BSP, no other charges should be collected on credit card cash advances except for that flat fee.

See also: Save More: Credit Cards with No Interest or the Lowest Interest Rate

Updated Credit Card Interest Rates in the Philippines 2023

credit card interest rate philippines - updated rates 2023

To comply with the BSP-mandated cap on interest rates and other fees, a few commercial banks in the Philippines have announced their respective new rates.

Below are the updated tables of fees and credit card interest rates in the Philippines for 2023. Credit card fees that are not included in the tables remain the same.

💳 AUB Credit Card Interest Rates and Fees

AUB Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Installment add-on interest rate 1% March 1, 2021
Late payment fee
  • ₱250 for weekly payment option 
  • ₱500 for semi-monthly payment option 
  • ₱1,000 for monthly payment option or the unpaid minimum amount due, whichever is lower
March 1, 2021
credit card interest rates philippines - AUB

💳 Bank of Commerce Credit Card Interest Rates and Fees

Bank of Commerce Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Late payment fee ₱1,000 or the unpaid minimum amount due, whichever is lower February 1, 2021
Overlimit fee ₱500 February 1, 2021

credit card interest rates philippines - Bank of Commerce

💳 BPI Credit Card Interest Rates and Fees

BPI Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Special Installment Plan (S.I.P.) pre-termination fee ₱550 + 2% of the loan principal amount or applicable interest of the next monthly payment July 2022
Late payment fee ₱850 or the unpaid minimum amount due, whichever is lower July 2022
Cash advance interest rate 3% February 10, 2023
Cash advance fee ₱200 per transaction November 3, 2020
credit card interest rates philippines - BPI

💳 China Bank Credit Card Interest Rates and Fees

China Bank Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Late payment fee ₱750 or the unpaid minimum amount due, whichever is lower December 2021
Foreign transaction fee 2.5% December 2021
Quasi-cash fee ₱200 December 2021
Installment pre-termination fee ₱500 or 5% of the remaining unpaid installment balance, whichever is higher December 2021

💳 HSBC Credit Card Interest Rates and Fees

HSBC Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Cash advance interest rate 3% February 10, 2023
Cash advance fee ₱200 per transaction November 3, 2020
Minimum amount due ₱500 or the sum of 1% of the full current amount owed + 1/12 of the annual fee + 100% of monthly installment amount and any past due amount, overlimit amount, and late charge, whichever is higher February 28, 2022
HSBC Installment Plan pre-termination processing fee ₱500 December 2020
Late payment fee ₱1,000 or the unpaid minimum payment due, whichever is lower March 1, 2021
Overlimit fee ₱800 March 1, 2021

credit card interest rates philippines - HSBC


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💳 Maybank Credit Card Interest Rates and Fees

Maybank Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Cash advance fee ₱200 per transaction November 3, 2020
Late payment fee ₱850 or unpaid minimum amount due, whichever is lower May 3, 2021
Overlimit fee ₱750 May 3, 2021
credit card interest rates philippines - Maybank

💳 Metrobank Credit Card Interest Rates and Fees

Metrobank Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Installment processing fee ₱350 for every approved Cash2Go or Balance Transfer June 1, 2021
Cash advance fee ₱200 per transaction November 3, 2020
Late payment fee ₱1,000 or unpaid minimum amount due, whichever is lower June 1, 2021
credit card interest rates philippines - Metrobank

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💳 PNB Credit Card Interest Rates and Fees

PNB Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% (Peso) / 2.5% (Dollar and PNB Ze-Lo Mastercard) February 10, 2023
Cash advance fee ₱200 (Peso) / US$4 (Dollar) As of February 2023
Late payment fee ₱1,000 or US$20 (Does not apply to Ze-Lo Mastercard) As of February 2023
Overlimit fee ₱500 or US$10 (Does not apply to Ze-Lo Mastercard) As of February 2023
Foreign currency transaction fee  2.50% of Mastercard’s, Visa’s, or UnionPay's conversion rate of the day As of February 2023

credit card interest rates philippines - pnb

💳 RCBC Credit Card Interest Rates and Fees

RCBC Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Cash advance fee ₱200 per transaction November 3, 2020
Late payment fee ₱850 or unpaid minimum amount due, whichever is lower November 3, 2020
Overlimit fee ₱600 November 3, 2020
Balance transfer ₱250 November 3, 2020
credit card interest rates philippines - rcbc

💳 Security Bank Credit Card Interest Rates and Fees

Security Bank Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Cash advance fee ₱200 per transaction (Peso accounts) / USD 4 per transaction (Dollar accounts) November 3, 2020
Quasi-cash fee 2.5% of the transacted amount January 25, 2021
ChargeLight Plan Pre-termination fee 5% of the unbilled portion of the principal amount February 1, 2021
Returned check fee ₱1,250 / US$25 per returned check February 1, 2021
SOA retrieval fee ₱50 per page if requested billing statement is from three months or more ago February 1, 2021
credit card interest rates philippines - Security Bank

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💳 UnionBank Credit Card Interest Rates and Fees

UnionBank Credit Card Fees New Rates Effectivity Date
Monthly interest rate 3% February 10, 2023
Cash advance fee ₱200 November 3, 2020
Late payment fee  ₱1,000 November 3, 2020
Overlimit fee ₱500 November 3, 2020

 

credit card interest rates philippines - UnionBank


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5 Tips to Avoid Getting Charged with Credit Card Interest Rates

credit card interest rate philippines - how to avoid being charged

Given the option to pay something in full or in several smaller payments, the latter sounds more appealing, especially if the item has a high price tag. But to avoid hefty charges due to credit card interest rates in the Philippines, keep the following tips in mind.

✔️ Pay Your Credit Card in Full

One of the perks of owning a credit card is the convenience of paying for purchases over a period of time. But if you carry your credit card balance from month to month, you end up paying more. You’ll accumulate interest charges until you fully pay off your credit card balance.

Pay off your credit card in full, so you won’t have to carry the balance to the next month. And while you haven’t fully settled your outstanding balance, try not to make any more credit card purchases so as to not add to the amount you owe.

✔️ Pay More Than Your Minimum Amount Due

If you pay more than the minimum amount due, you’re decreasing the interest you’ll need to pay in the longer term. Also, your credit card won't get maxed out, improving your credit utilization ratio.

✔️ Read Your Credit Card’s Terms and Conditions

Before you swipe, make sure you understand how your credit card issuer will charge you for a particular purchase or transaction. The terms and conditions will fully explain how your credit card balance will be calculated and what the charges and credit card interest rates in the Philippines are.

✔️ Avoid Making a Cash Advance

A cash advance isn’t the same as a cash withdrawal from an ATM. The moment you make a cash advance on your credit card, the interest starts adding up. Avoid borrowing from your credit card limit unless it’s a real emergency and you can pay the amount ASAP.

✔️ Reduce Your Credit Card Balance

If your current financial situation doesn’t allow you to fully pay off your credit card, reduce your credit card balance at least. Pay it down to avoid hefty interest. More importantly, resist the temptation of making new credit card purchases for now if you can’t pay them in full.

Related reading: 

Final Thoughts

The higher cap on credit card interest rates in the Philippines can cause financial strain for most Filipinos. Combine these new rates with the constantly rising prices of goods in the country, and you've got the recipe for a mountain of credit card debt. 

To maintain your good credit standing, avoid maxing out your limit, pay your bills in full and on time, and use your card responsibly.

Don't have a card yet? Click the banner below to compare the best cards that offer the lowest credit card interest rates.

Compare credit cards with Moneymax

Sources:

Venus leads the blog content strategy and optimization at Moneymax as the Head of Editorial Content. She has 15+ years of experience in content marketing, corporate communications, and public relations. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. Before joining Moneymax, Venus had written informative guides and articles, specializing in personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. A hardcore Hallyu Tita, she enjoys bingeing K-dramas on Netflix while bonding with her rescued cats. Follow Venus on LinkedIn.

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