One thing that most people fail to realize if they have credit cards is that it’s building their own financial reliability. When credit cards are the topic, people focus more on the fact that it’s debt—although it’s true, there are things that they don’t see in the face of credit cards.
In fact, there are a couple of things that people with credit cards can do. In addition to that, there are quite a few useful and efficient advantages to owning a credit card like an emergency type of line, exclusive rewards, you can purchase expensive things easily, and others that go along with it.
However, a ton of Filipinos prefer not to get credit cards because it will be tagged as “debt” and the fees with it. To give you a concrete figure, around 22 percent of Filipinos don’t own a credit card because they’re discouraged with the interest charges. Others, however, gets the hindrance from paying the annual fee.
What is an annual fee?
Coming from its term, a credit card annual fee is a convenience fee that institutions charge their clients. To put simply, it’s the specific amount clients pay because they use the financial institution’s (bank’s) credit card services.
Can you avoid annual fees?
Most usually, the credit cards that our banks offer would have the description of the fees that are involved. These would be the interest rate/s, the penalties, the rewards, and if there is an annual fee, the annual fee.
Read: Different Types of Credit Cards
As a matter of fact, there are two (2) kinds of credit cards which offer no annual fees: cards with those annual fee waivers, and the cards with the annual fees waived for life.
So, by getting a credit card with no annual fees involved, you’ll be saving a lot. More so, you can enjoy the credit card without having to think of the annual fee that you will be paying for.
Credit cards that have NO annual fee FOR LIFE
The Philippine National Bank (PNB) Travel Club Platinum Mastercard
- Monthly income requirement (minimum): P10, 000.00
- This credit card is best for: People who always travel and those who use The Travel Club (TTC)
- Fees and charges involved:
- Late payment fee: P300 or $10
- Interest rate: 3.25%
- Foreign currency transaction fee: 2.50%
- Cash advance fee: 5% of the cash advance amount
Key benefits and features
- Lifetime waiver of annual fee
- 20% birthday month discount on regular prices of TTC-housed brands
- Up to P3 million travel insurance coverage
- Dual-currency billing
- You can earn 1 reward point/s for every P40.00 spent at TTC and P55 to any other merchant
- 5% discount on all branches of TTC
- Protection insurance free purchase
- 1% rebate on TTC transactions on installment
- Waived repair service fee exceeding the warranty period
Bank of Commerce Platinum Mastercard
- Monthly income requirement (minimum): P100, 000.00
- This credit card is best for: High-income people
- Fees and charges involved:
- Late payment fee: P500 or $10; 5% of the minimum amount due, or whichever is more
- Interest rate: 2.95%
- Foreign currency transaction fee: 2.50%
- Cash advance fee: 5% of the cash advance amount or P300, or whichever is more
Key benefits and features
- Lifetime waiver of the annual fee for both the principal and the supplementary cardholders
- Dual-currency billing
- You can apply for up to P2 million travel insurance coverage
- You can earn 1 reward point for every P25 spent to whatever merchant
- Up to 5 times the reward points at selected shopping merchants and dining venues.
Metrobank M Free Mastercard
- Monthly income requirement (minimum): P15, 000.00
- This credit card is best for: Millennials who are savvy financially
- Fees and charges involved:
- Late payment fee: P750
- Interest rate/s: 3.54%
Key benefits and features
- No annual fee for life
- 0% installment on a wide array of products and establishments
- The card comes with an embedded EMV chip
EastWest Platinum Mastercard
- Monthly income requirement (minimum): P150, 000.00
- This credit card is best for: Business people, managers, and executives who are high-earners
- Fees and charges involved:
- Late payment fee: 7.5% of the minimum amount due
- Interest rate: 2.75%
- Foreign currency transaction fee: 3.00%
Key benefits and features
- No annual fee for life for both the principal cardholder and the supplementary members
- Free EastWest Platinum Virtual Card for shopping online
- Easy access to over 950 VIP airport lounges
- You can earn one (1) reward point for every P40 spent to any merchant
- Free travel insurance up to PHP 20 million
Read: When and Why Should You Get a Credit Card?
Citi Simplicity+ card
- Monthly income requirement (minimum): P15, 000.00 if you have another credit card, P21, 000.00 if none.
- This credit card is best for: Regular credit card users
- Cardholders who pay at least the minimum amount due on or before the due date will be able to get a ten (10) percent rebate on the interest charges.
- Fees and charges involved:
- Interest rate: 3.50%
- Foreign currency transaction fee: 4.00%
Key benefits and features
- No annual fee for life for both the principal cardholder and the supplementary members
- Up to 50% discount on participating restaurants
- Up to 50% discount on participating hotels and resorts
- No over limit and late fees involved
BPI eCredit Card
- Monthly income requirement (minimum): P15, 000.00
- This credit card is best for: People who love to shop online
- Fees and charges involved:
- Late payment fee: P500 or 6% of the past due amount, or whichever is higher
- Interest rate: 3.50%
- Cash advance fee: P500 or 3% of the cash advance amount, or whichever is more
Key benefits and features
- No annual fee for life for both the principal cardholder and the supplementary members
- You can convert purchases from partner merchants to 0% installment plan/s
- You can earn 1 reward point for every P35 purchase
- The eCredit feature substantially gives security to cardholders by automatically assigning a lower credit limit and a different card number
So these are some of the best credit cards which does not have annual fees. But what about cards that have a limited waiver of the annual fee/s?
HSBC Red Mastercard
- Monthly income requirement (minimum): P16, 666.00
- This credit card is best for: Young professionals; young adult employees
- Fees and charges involved:
- Annual fee for regular cardholders: P1, 500.00 which is waived for the first year
- Late payment fee: P700
- Interest rate: 3.50%
- Cash advance fee: P500 or 3% of the cash advance amount, or whichever is more
- Foreign currency transaction fee: 2.50%
Key benefits and features
- No annual fee for life (new cardholders who are eligible for the HSBC Free for Life Annual Fee credit card promo)
- A 6% rebate on the first fuel purchase at Caltex; 3% fuel rebate for the whole year
- You can earn 4 bonus reward points for every P20 spent on dining, international, shopping, and online transactions
- Privileges at more than 27,000 vendors worldwide
BDO UnionPay Gold
- Monthly income requirement (minimum): P35, 500.00
- This credit card is best for: People who fly often
- Fees and charges involved:
- Late payment fee: 5% of the minimum amount due or P300, or whichever is higher (for PhP billing) and 5% of the minimum amount due or $6, or whichever is higher for (USD).
- Interest rate: 3%
- Foreign currency transaction fee: 2%
Read: Credit Card Application Tips And Techniques For Higher Chances Of Approval
Key benefits and features
- No annual fee for life for first supplementary cardholder. Principal card holder will have the annual fee waived for three (3) years; succeeding supplementary cardholders will have theirs waived for four (4) years.
- You can earn one (1) reward point for every P50 local transaction and/or $1 for an international transaction
- Get two (2) separate billing statements; one in PHP and one in USD
- Free travel insurance up to P5 million
PNB-PAL Mabuhay Miles NOW Mastercard
- Monthly income requirement (minimum): P10, 000.00
- This credit card is best for: Frequent and loyal Philippine Airlines (PAL) clients
- Fees and charges involved:
- Late payment fee: P300 or $10
- Interest rate: 2.70%
- Foreign currency transaction fee: 2.50%
- Annual fee (for the fourth year and onward): P6, 000.00
- Cash advance fee: 5% of the cash advance amount
Key benefits and features
- The annual fee, for three (3) years is waived
- You can earn one (1) rewards point for every P55 spent
- New cardholders can enjoy 1,000 Mabuhay Miles welcome gift
- Up to P1 million travel insurance coverage
- 5% discount on select PAL international flights booked online
- Up to P250, 000 purchase protection insurance coverage
Robinsons Bank DOS Mastercard.
- Monthly income requirement (minimum): P15, 000.00 for single and P20, 000.00 for married
- This credit card is best for: Low-income earners
- Fees and charges involved:
- Annual fee for cardholders who use their cards less than twelve (12) times a year: P100 per month (classic); P3,000 (platinum)
- Foreign currency transaction fee: 2%
- Cash advance fee: 9% of the cash advance amount
- Interest rate: 3.50%
- Late payment fee: P600
Read: Relevant Money Lessons you were not Taught in School
Key benefits and features
- No annual fee for life IF the Robinsons Bank credit card is used 12 times or more within a year, every year
- Convert all straight purchases to two-month 0% installment automatically
- You have the chance to get one (1) rewards point for every P50 spent
UnionBank Cebu Pacific GetGo
- Monthly income requirement (minimum): NONE
- This credit card is best for: Frequent travelers who are Premium UnionBank clients
- Fees and charges involved:
- Foreign currency transaction fee: 3%
- Interest rate: 3.50%
- Annual fee (for regular UnionBank customers): P3,000
- Cash advance fee: P300 or 6% of the cash advance amount, whichever is higher, plus a P500 charge for over-the-counter transactions
- Late payment fee: P750 per instance
Key features and benefits:
- Selected UnionBank members only: No annual fee
- Early seat sale alerts
- You can earn one (1) GetGo point for every P30 spent
Read: Low-Income Credit Cards for People Who Earn Php20, 000 or Less in a Month
Now, these are the credit cards that have limited waivers for the annual fee. Feel free to choose from the list of credit cards so that you have the full option to look at the cards and how you would be using them.