Swipe and Save: 10 Credit Cards with No Interest in the Philippines
By: Moneymax
Published on: June 11, 2020 . Last updated: October 15, 2020 Category: Credit Card
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.
Table of Contents
- How Do Credit Cards with No Interest Work?
- Choosing the Right Zero-Interest Credit Card for You
- 10 Credit Cards With No Interest in the Philippines
- 1. BDO Installment Card
- 2. BPI Edge MasterCard
- 3. Citi Simplicity+
- Features and Benefits
- Fees and Charges
- 4. Eastwest Bank Gold MasterCard
- 5. HSBC Red Mastercard
- Features and Benefits
- Fees and Charges
- 6. Maybank Standard MasterCard
- Features and Benefits
- Fees and Charges
- 7. Metrobank M Free Mastercard
- Features and Benefits
- Fees and Charges
- 8. RCBC Visa Infinite Card
- Features and Benefits
- Fees and Charges
- 9. Security Bank Classic Rewards Mastercard
- Features and Benefits
- Fees and Charges
- 10. Unionbank Classic Visa
- Features and Benefits
- Fees and Charges
- Final Thoughts
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!
Category | Description |
---|---|
No Annual Fee Credit Cards | Want to save money with your credit card? Skip the annual fees with these top cards. |
Rewards Credit Cards | Earn more rewards points with these best rewards credit cards! Ideal for online shopping and everyday spending. |
Cashback Credit Cards | Earn cash rebates with every purchase with a cash back credit card. Ideal for groceries and dining. |
Travel Credit Cards | Are you a frequent traveler? These best travel credit cards are ideal for racking up air miles and other travel rewards. |
Source: [1] Understanding Credit Card Interest (Investopedia, 2020)
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.
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