Swipe and Save: 10 Credit Cards with No Interest in the Philippines

Big-ticket purchases can get expensive, especially if you pay them in cash. However, there are plenty of “buy now, pay later” schemes that allow you to purchase high-ticket items without paying immediately. One of these schemes is the 0% interest installment plan for purchases made using a credit card.

How Do Credit Cards with No Interest Work?

Credit cards with no interest mean you don’t have to pay interest on purchases charged to it for a specific period. This period is typically between six to 36 months, depending on the bank. Once this period ends, your card’s regular interest rate^[1] will take over. You will also pay interest on other types of credit card transactions such as cash advances, overlimit, late payment, and balance transfer unless stated in the terms and conditions.

Credit cards with no interest can be a great way to finance high-ticket purchases without shelling out a huge amount upfront. However, you have to keep up with your monthly payments to make sure you won’t incur hefty charges that may cost you more money in the long run.

Read more: 7 Reasons to Get a Credit Card in the New Normal

Choosing the Right Zero-Interest Credit Card for You

A credit card, even with a 0% installment plan, isn’t one size fits all. To know which card may suit you and your needs, consider the following:

Installment period

A card with a 0% installment features will allow you to fund a high-ticket purchase or an emergency expense. It lets you divide the amount into monthly payments. Determine how long you need to pay off your credit card debt and compare it with the 0% interest installment period offered by the bank. Choose a credit card that offers a zero-interest installment plan that fits your finances. Otherwise, you may have to pay for interest charges once the installment period ends.

For example, you need 12 months to pay the debt in full, but the credit card only offers a six-month 0% installment plan. You may have to pay the monthly interest rate for the remaining six months.

Monthly interest rate

Once the 0% installment period is up, you would have to pay for your credit card’s monthly interest charge. This could be anywhere between 3% to 3.5%. Determine the card’s interest rate and crunch the number to know how much you have to pay, including the monthly interest charge. This way you can better manage your credit card bills.

Read more: 12 Credit Card Fees in the Philippines to Watch Out for

Added benefits

You can maximize your credit card if it has additional money-saving features. Some of these benefits are rewards programs, waived annual fees, free balance transfer, and even travel insurance.

10 Credit Cards With No Interest in the Philippines

Here are 10 best credit cards with no interest in the Philippines that may help you purchase your big-ticket purchases without soiling your pockets:

1. BDO Installment Card

Features and Benefits

• Revolving credit line
• 0% installment terms of up to 36 months
• Free GCs and rebates from partner merchants

Other Fees and Charges

• Interest rate: 3%
• Annual fee: PHP 1,000
• Minimum monthly income requirement: PHP 10,000
• Late payment fee: 7% amount overdue
• Cash advance fee: 5% of amount withdrawn or PHP 500, whichever is higher

2. BPI Edge MasterCard

Features and Benefits

• Discount and rewards in select shops, restaurants, and clubs
• Reward point for every PHP 50 spent
• 0% interest installment plan on partner shops

Fees and Charges

• Interest rate: 3.50%
• Annual fee: PHP 110 per month, but waived for the first year
• Minimum monthly income requirement: PHP 15,000
• Late payment fee: PHP 850 or equal to the amount due, whichever is lower
• Cash advance fee: 3% of the amount withdrawn or PHP 500, whichever is higher

3. Citi Simplicity+

Features and Benefits

• 10% cashback on interest charges
• 0% interest installment terms of up to 24 months
• Exclusive deals at partner merchants

Fees and Charges

• Interest rate: 3.50%
• Annual fee: Free for life
• Minimum monthly income requirement: PHP 20,833
• Late payment fee: PHP 850 or equal to the amount due, whichever is lower
• Cash advance fee: 3% of the amount withdrawn or PHP 500, whichever is higher

4. Eastwest Bank Gold MasterCard

Features and Benefits

• Cash advance up to 50% of credit limit
• As low as 0% interest on purchases at partner merchants
• Installment terms of up to 18 months

Fees and Charges

• Interest rate: 3.50%
• Annual fee: PHP 2,500
• Minimum monthly income requirement: PHP 40,000
• Late payment fee: 8% of the minimum amount due
• Cash advance fee: 3% of the amount withdrawn or PHP 600, whichever is higher

5. HSBC Red Mastercard

Features and Benefits

• 4x rewards points on online, shopping, dining, and overseas transactions
• 6% on your first Caltex fuel purchase, 3% rebate all-year round
• 0% interest installment at all participating merchants with flexible payments schemes of up to 36 months

Fees and Charges

• Interest rate: 3.50%
• Annual fee: PHP 1,500
• Minimum monthly income requirement: PHP 16,667
• Late payment fee: PHP 700.00 or unpaid minimum amount due, whichever is lower
• Cash advance fee: PHP 500.00 or 3.00% of amount drawn, whichever is higher

6. Maybank Standard MasterCard

Features and Benefits

• 0% installment terms of up to 24 months
• Flexible payment plans with EzyPlan
• Exclusive discounts at select stores

Fees and Charges

• Interest rate: 3.50%
• Annual fee: PHP 1,000
• Minimum monthly income requirement: PHP 21,667
• Late payment fee: 5% of the minimum amount due or PHP 500, whichever is higher
• Cash advance fee: 3% of the amount withdrawn or PHP 500, whichever is higher

7. Metrobank M Free Mastercard

Features and Benefits

• 0% interest installment terms from select merchants
• Installment terms of up to 24 months
• Discounts and deals at partner establishments

Fees and Charges

• Interest rate: 3.54%
• Annual fee: No annual fee for life
• Minimum monthly income requirement: PHP 15,000
• Late payment fee: PHP 850 or the minimum due amount, whichever is lower
• Cash advance fee: 3% of the amount withdrawn or PHP 600, whichever is higher

8. RCBC Visa Infinite Card

Features and Benefits

• 5% rebates on clothing and apparel purchases
• Non-expiring reward points
• 0% installment terms up to 36 months

Fees and Charges

• Interest rate: 3.50%
• Annual fee: PHP 3,600, but free for the first year
• Minimum monthly income requirement: PHP 41,667
• Late payment fee: PHP 400 to PHP 600
• Cash advance fee: 3% of the amount withdrawn or PHP 500, whichever is higher

9. Security Bank Classic Rewards Mastercard

Features and Benefits

• Non-expiring reward points
• 0% installment terms up to 24 months
• Discounts on select shops and restaurants

Fees and Charges

• Interest rate: 3.50%
• Annual fee: PHP 2,000, but free for the first year
• Minimum monthly income requirement: PHP 15,000
• Late payment fee: PHP 600 or 6% of the minimum amount due, whichever is lower
• Cash advance fee: 5% of the amount withdrawn or PHP 500, whichever is higher

10. Unionbank Classic Visa

Features and Benefits

• 0% installment terms up to 26 months
• Up to PHP 400,00 life insurance
• Discounts on select shops and services nationwide

Fees and Charges

• Interest rate: 3.50%
• Annual fee: PHP 1,500
• Minimum monthly income requirement: PHP 50,000
• Late payment fee: PHP 750
• Cash advance fee: 5% of the amount withdrawn or PHP 500, whichever is higher

Final Thoughts

Credit cards with no interest may not have the same features as other cards in the market. Reward programs may vary, for example. Explore your credit card options and compare their benefits to know which one suits you best. Make sure to read the fine print and contact the bank if you have any questions or concerns about the credit card.

Discover other top credit cards in the Philippines:

Looking for the best credit card for you? Below is a list of top credit card features with discounts and other perks. Compare your options with Moneymax!

Source: ^[1] Understanding Credit Card Interest (Investopedia, 2020)

Moneymax

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