Some financial advisers will tell you to avoid using credit cards like the plague. There are also countless credit card horror stories that serve as cautionary tales for those who are thinking of getting one.
However, you can’t deny that credit cards are a must-have, especially now that everyone’s shopping online and doing virtual transactions. When used responsibly, your credit card can unlock a lot of features that other payment methods don’t offer. Moreover, you get to build your credit history, which is necessary when applying for home loans or car loans.
But perhaps the most attractive feature of credit cards is that they help finance your big-ticket purchases. Some credit cards even offer 0% interest[1] on your purchases with flexible payment terms.
Curious to know how these zero interest credit cards work? We’ve got the answer right here. We’ve even listed down the top zero interest credit cards in the Philippines that you may want to consider.
How Do Zero Interest Credit Cards 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[2] will take over. You'll also pay interest on other types of credit card transactions and fees such as cash advances, overlimit fee, late payment fee, and balance transfer, unless stated in the terms and conditions.
There are also banks that offer zero interest on balance transfers.[3] This is a good option for those trying to manage their credit card debt. It works by transferring your existing credit card balance to a new credit card at 0% interest. This way, you can consolidate your credit card balances and just pay in fixed monthly installments.
Credit cards that have zero interest on balance transfers will also keep you from missing your due dates, especially if you have multiple credit cards. Since your balances are consolidated in one credit card, you’ll need to remember only one due date, which in turn will help you settle your obligations on time.
With the help of no interest credit cards, you can finance high-ticket purchases without shelling out a large amount of money. You can use your card for buying appliances, gadgets, and even booking flights and hotel accommodations.
But be diligent when making your monthly payments. This way, you’ll avoid hefty charges that will 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 factors.
Installment Period
A card with a 0% installment plan allows 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 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 have to pay for your credit card’s monthly interest charge. Currently, the maximum credit card interest rate in the Philippines is 2%.
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 payments.
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.
14 Best No Interest Credit Cards in the Philippines
Here are the best credit cards with no interest in the Philippines that may help you purchase your big-ticket purchases without soiling your pockets.
BPI Edge Mastercard
📌 Features and Benefits
- Discount and rewards in select shops, restaurants, and clubs
- Reward point for every PHP 50 spend
- 0% interest installment plan on partner shops
💸 Fees and Charges
- Interest rate: 3%
- Annual fee: PHP 1,320
- Minimum monthly income requirement: PHP 15,000
- Late payment fee: PHP 850 or equal to the amount due, whichever is lower
- Cash advance fee: PHP 200
Read more: Tap It, Save Big: Top BPI Credit Card Promos for 2023
Citi Simplicity+ Card
📌 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%
- Annual fee: Free for life
- Minimum monthly income requirement: PHP 20,833
- Late payment fee: None
- Cash advance fee: PHP 200
Note: This product is sold by Union Bank of the Philippines, using certain trademarks temporarily under license from Citigroup Inc. and related group entities.
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%
- Annual fee: PHP 2,500
- Minimum monthly income requirement: PHP 16,667
- Late payment fee: PHP 1,000 or unpaid minimum amount due, whichever is lower
- Cash advance fee: PHP 200
HSBC Premier Mastercard
📌 Features and Benefits
- 0% interest on purchases with terms of up to 36 months
- No annual fee for life
- Earn 1 air mile for spend that as low as PHP 25
- Free travel accident insurance and travel inconvenience coverage
💸 Fees and Charges
- Interest rate: 3%
- Annual fee: Waived
- Minimum monthly income requirement: Only HSBC Premier Bank Account holders are eligible for this card.
- Late payment fee: PHP 1,000 or unpaid minimum amount due, whichever is lower
- Cash advance fee: PHP 200
HSBC Advance Visa
📌 Features and Benefits
- 0% interest on purchases with terms of up to 36 months
- Rewards for online shopping: 4 bonus points for every PHP 15 spend
- 6% rebate on your first Caltex fuel purchase, 3% rebate all-year-round
💸 Fees and Charges
- Interest rate: 3%
- Annual fee: PHP 2,500
- Minimum monthly income requirement: Only HSBC Advance Account holders are eligible for this card.
- Late payment fee: PHP 1,000 or unpaid minimum amount due, whichever is lower
- Cash advance fee: PHP 200
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%
- Annual fee: PHP 2,000 (free for the first year)
- Minimum monthly income requirement: PHP 16,250
- Late payment fee: PHP 850 or unpaid minimum amount due, whichever is lower
- Cash advance fee: PHP 200
Read more: Maybank Credit Card Promo 2022: Top Deals and Discounts You Shouldn’t Miss
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%
- Annual fee: No annual fee for life
- Minimum monthly income requirement: PHP 15,000
- Late payment fee: PHP1,000 or unpaid minimum amount due, whichever is lower
- Cash advance fee: PHP 200
RCBC Visa Infinite Card
📌 Features and Benefits
- 0% interest on purchases with terms up to 36 months
- 0% interest on purchases abroad
- Non-expiring reward points
💸 Fees and Charges
- Interest rate: 3%
- Annual fee: PHP 3,600
- Minimum monthly income requirement: PHP 300,000
- Late payment fee: PHP 850 or the minimum amount due, whichever is lower
- Cash advance fee: PHP 200
RCBC Bankard Gold Mastercard
📌 Features and Benefits
- 0% interest on purchases with terms of up to 36 months
- Unli-installment which allows you to convert your straight purchases to installment
- Free travel insurance and purchase protection
💸 Fees and Charges
- Interest rate: 3% per month
- Annual fee: PHP 3,000
- Minimum monthly income requirement: PHP 50,000
- Late payment fee: PHP 850 or the minimum amount due, whichever is lower.
- Cash advance fee: PHP 200
UnionBank Classic Visa
📌 Features and Benefits
- 0% installment terms up to 26 months
- Up to PHP 400,00 life insurance
- Credit life insurance that can cover up to PHP 400,000 of your outstanding balance
💸 Fees and Charges
- Interest rate: 3%
- Annual fee: PHP 1,500
- Minimum monthly income requirement: PHP 30,000
- Late payment fee: PHP 750
- Cash advance fee: PHP 200
UnionBank Gold Visa
📌 Features and Benefits
- 0% interest installment plans
- Non-expiring reward points
- Credit life insurance that can cover up to PHP 400,000 of your outstanding balance
💸 Fees and Charges
- Interest rate: 3% per month
- Annual fee: PHP 2,500
- Minimum monthly income requirement: PHP 30,000
- Late payment fee: PHP 750
- Cash advance fee: PHP 200
AUB Gold Mastercard
📌 Features and Benefits
- 0% interest on new purchases
- Rewards points can be transferred to Mabuhay Miles Frequent Flyer Program
- No annual fees for supplementary cards
💸 Fees and Charges
- Interest rate: 3% per month
- Annual fee: Waived for life
- Minimum monthly income requirement: PHP 50,000
- Late payment fee: PHP 750 or the unpaid minimum amount due, whichever is lower
Final Thoughts
Credit cards are not just for splurging. If you use it wisely, you save money with your purchases. This is especially true for zero interest cards where you can get 0 interest on your installment purchases or on balance transfers.
But don’t go for the first zero interest credit card that you come across. There are many zero interest credit card options out there, and studying each one’s features and benefits will help you pick the right card.
Lastly, make sure that you read the fine print before signing anything. Zero interest credit cards usually come with certain conditions. If there’s anything in the terms and conditions that’s not very clear to you, don’t hesitate to ask the issuing bank.
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 and apply for a credit card through Moneymax!
Source:
- [1] Zero Percent (Investopedia)
- [2] Understanding Credit Card Interest (Investopedia, 2020)
- [3] What is a Balance Transfer? (Bankrate.com)
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