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

Some traditional 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 making 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 offer low and even 0% interest^[1] on your purchases with flexible payment terms.

Curious to know which credit cards offer no interest or the lowest interest rate? We’ve listed down some of the best options out there.  

How Do Credit Cards with No Interest or the Lowest Interest Rate Work?

As the name suggests, credit cards with no interest or the lowest interest rate either don’t charge interest or only charge a minimal rate on purchases made within 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 fees, late payment fees, and balance transfers, unless stated in the terms and conditions.

With the help of a credit card with no interest or the lowest interest rate, you can finance high-ticket purchases without shelling out a large amount of money. You can use your card for buying appliances and gadgets, and even booking flights and hotel accommodations.

Zero and low-interest rates also apply to 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 with zero or low interest. This way, you can consolidate your credit card balances and just pay in fixed monthly installments.

How to Choose the Right Credit Card with No Interest or the Lowest Interest Rate

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 credit card with 0 interest on installment plans 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 3%.

Determine the card’s interest rate and crunch the numbers to know how much you have to pay, including the monthly interest charge. This way, you can better manage your credit card payments.

👉 Added Benefits

You can maximize your credit card with a low interest rate if it has additional money-saving features. Some of these benefits include rewards programs, waived annual fees, free balance transfers, and even travel insurance.

Best Low-Interest Credit Cards in the Philippines

If you’re scouting for a credit card with the lowest interest rate in the Philippines, here are your top two options: 

Security Bank Next Mastercard 

📌 Features and Benefits

• Automatically converts purchases worth at least ₱5,000 to easy installment plans of 3, 6, and 12 months with only a minimal add-on rate of 1% every month
• Purchase protection worth up to US$200 when you shop online
• Up to five supplementary cards 

💸 Fees and Charges

• Monthly add-on rate: 1% for auto-convert to installment 
• Annual fee: Waived forever 
• Minimum monthly income requirement: ₱50,000 (first-time cardholders) / ₱45,417 (those with existing credit cards)
• Cash advance fee: ₱200

Read more: Dine and More for Less: Security Bank Credit Card Promos to Avail Of

PNB Ze-Lo Mastercard 

📌 Features and Benefits

• 0% installment for up to 24 months at select PNB-affiliated merchants 
• Straight payment to installment conversion
• No overlimit fees
• Convert-to-cash feature 
• Lower minimum amount due

💸 Fees and Charges

• Interest rate: 1.88%
• Annual fee: Waived forever (No annual fee for life for all supplementary cards as well)
• Minimum monthly income requirement: ₱10,000
• Cash advance fee: ₱200

15 Best Credit Cards with Zero Interest in the Philippines

Looking for an HSBC, BPI, or Metrobank credit card with zero interest? What are the best credit cards with zero interest? 

Here are some of the best 0-interest credit cards that may help you finance your big-ticket purchases:

Credit Card	Installment Benefits
Metrobank Platinum Mastercard®	0% interest installment plans
Metrobank Titanium Mastercard®	0% interest installment plans of up to 24 months
HSBC Red Mastercard	0% interest installment at all participating merchants with flexible payments schemes of up to 36 months
BPI Edge Mastercard	Multiple installment options: 0% installment, Buy Now Pay Later, Bonus Madness Limit (additional installment limit)
HSBC Premier Mastercard	0% interest on purchases with terms of up to 36 months Cash installment plans at low interest rates

Read on for more details and credit card options.

UnionBank Classic Visa Card

📌 Features and Benefits

• 0% installment terms up to 36 months
• 1 rewards point for every ₱35 spend
• Auto insurance that can be charged in installments
• Credit life insurance that can cover up to ₱400,000 of your outstanding balance

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: ₱1,500 (Apply until July 31, 2023 to enjoy free annual fee) 
• Minimum monthly income requirement: ₱15,000
• Cash advance fee: ₱200

UnionBank Gold Visa Card

📌 Features and Benefits

• 0% interest installment plans
• Non-expiring rewards points
• Credit life insurance that can cover up to ₱400,000 of your outstanding balance

💸 Fees and Charges

• Interest rate: 3% per month
• Annual fee: ₱2,500 (Apply until July 31, 2023 to enjoy free annual fee) 
• Minimum monthly income requirement: ₱15,000
• Cash advance fee: ₱200

Read more: Don’t Miss These 16 UnionBank Credit Card Promos This 2023

HSBC Red Mastercard

📌 Features and Benefits

• 0% interest installment at all participating merchants with flexible payments schemes of up to 36 months
• 1 bonus point for every ₱20 spend
• 4x rewards points on online, shopping, dining, and overseas transactions
• 6% on your first Caltex fuel purchase, 3% rebate all year round

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: ₱2,500 (Waived in the first year)
• Minimum monthly income requirement: ₱16,667
• Cash advance fee: ₱200

Read more: Lavish Lifestyle for Less: Best HSBC Credit Card Promos This 2023

Metrobank Platinum Mastercard®

📌 Features and Benefits

• 0% interest installment plans
• 1 rewards points for every ₱20 spend
• 50% off on dining deals at participating merchants
• E-commerce purchase protection worth up to US$200

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: ₱5,000
• Minimum monthly income requirement: ₱58,333
• Cash advance fee: ₱200

Related reading: From Food Trucks to Fine Dining: Credit Card Dining Promos for 2023

Metrobank Titanium Mastercard® 

📌 Features and Benefits

• 0% interest installment plans of up to 24 months
• 1 rewards point for every ₱20 spend
• 2x points on department store, dining, and online transactions
• Non-expiring rewards points

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: ₱2,500
• Minimum monthly income requirement: ₱29,167
• Cash advance fee: ₱200

BPI Edge Mastercard

📌 Features and Benefits

• Multiple installment options: 0% installment, Buy Now Pay Later, Bonus Madness Limit (additional installment limit)
• 1 rewards point for every ₱50 spend
• Discounts and rewards in select shops, restaurants, and clubs
• Low FOREX rates at 1.85%

💸 Fees and Charges

• Interest rate: 3%
• Monthly fee: ₱110
• Minimum monthly income requirement: ₱15,000
• Cash advance fee: ₱200

HSBC Premier Mastercard

📌 Features and Benefits

• 0% interest on purchases with terms of up to 36 months
• Cash installment plans at low interest rates
• Balance conversion payable up to 24 months 
• 1 air mile for spend as low as ₱25
• Free travel accident insurance and travel inconvenience coverage

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: Waived forever
• Minimum monthly income requirement: Only HSBC Premier Bank Account holders are eligible for this card
• Cash advance fee: ₱200

Metrobank M Free Mastercard®

📌 Features and Benefits

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

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: Waived forever
• Minimum monthly income requirement: ₱15,000
• Cash advance fee: ₱200

RCBC Visa Infinite Card

📌 Features and Benefits

• 0% interest on purchases with terms up to 36 months
• Unli installment that allows you to convert straight purchases to installments
• 100,000 rewards points as a welcome gift when you spend at least ₱60,000 with your card within 60 days from card delivery
• Non-expiring rewards points
• Travel insurance worth up to ₱5 million 

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: ₱6,000 
• Minimum monthly income requirement: ₱300,000
• Cash advance fee: ₱200

RCBC Gold Mastercard

📌 Features and Benefits

• 0% interest on purchases with terms of up to 36 months
• Unli installment that allows you to convert straight purchases to installments
• Non-expiring rewards points
• Free travel insurance and purchase protection
• Access to Marhaba/Skyview Airport Lounge

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: ₱3,000
• Minimum monthly income requirement: ₱50,000
• Cash advance fee: ₱200

AUB Gold Mastercard

📌 Features and Benefits

• 0% interest on new purchases
• Rewards points can be transferred to Mabuhay Miles Frequent Flyer Program
• Freedom to choose your due date

💸 Fees and Charges

• Interest rate: 3% per month
• Annual fee: Waived for life (No annual fees for life for supplementary cards as well)
• Minimum monthly income requirement: ₱50,000

AUB Platinum Mastercard

📌 Features and Benefits

• 0% interest on new purchases
• Rewards points can be transferred to Mabuhay Miles Frequent Flyer Program
• Freedom to choose your due date

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: Waived for life (No annual fee for life for supplementary cards as well)
• Minimum monthly income requirement: ₱100,000

PNB-PAL Mabuhay Miles World Mastercard

📌 Features and Benefits

• 0% installment up to 24 months when you shop from select PNB-affiliated partner merchants
• 2,000 Mabuhay Miles as a welcome gift 
• Exclusive year-round online discount at Philippine Airlines (PAL)
• Priority check-in at PAL Business Class counters
• Comes with World Assist (travel and medical concierge service)

💸 Fees and Charges

• Interest rate: 2.5% (Dollar account) / 3% (Peso account)
• Annual fee: ₱6,000 (No annual fee for life for all supplementary cards as well)
• Minimum monthly income requirement: ₱200,000
• Cash advance fee: ₱200 

PNB Visa Classic 

📌 Features and Benefits

• 0% installment for up to 24 months at select PNB-affiliated merchants 
• 1% rebate on revolved interest
• Allows bills payments in peso for transactions abroad

💸 Fees and Charges

• Interest rate: 2.5% (Dollar account) / 3% (Peso account)
• Annual fee: ₱300 (No annual fee for life for all supplementary cards as well)
• Minimum monthly income requirement: ₱10,000
• Cash advance fee: ₱200 

Read more: PNB Credit Card Promos for 2023: Exclusive Deals and Privileges You Can Enjoy

Maybank Standard Mastercard

📌 Features and Benefits

• 0% installment terms of up to 24 months
• Flexible payment plans with EzyPlan
• 1 Treat Point for every ₱25 spend
• Accepted in more than 20 million locations and over 275 countries and territories

💸 Fees and Charges

• Interest rate: 3%
• Annual fee: ₱2,000 (Waived in the first year)
• Minimum monthly income requirement: ₱16,250
• Cash advance fee: ₱200

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 credit cards with no interest or the lowest interest rate.

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. Credit cards with low to zero interest usually come with certain conditions. If there’s anything in the terms and conditions that’s not clear to you, don’t hesitate to ask the issuing bank.

Sources: 

• ^[1] Zero Percent (Investopedia)
• ^[2] Understanding Credit Card Interest (Investopedia, 2020)
• ^[3] What is a Balance Transfer? (Bankrate.com)