Earning from your spending transactions seems too good to be true, but cash back credit cards make that possible. There are a lot of credit cards out there with different tiers, features, and rates and cashback is something you should consider.  

What is a cashback credit card?

A cashback credit card is a type of credit card that provides a portion of what you spend back to your account. It is essentially a rebate in the form of a percentage of your total purchases made with the credit card. 

How does one redeem cashback?

Redemption of money earned back from your expenses can be in two ways. One, the bank automatically credits the amount to your account every after spending, and two, you need to wait for the next billing cut-off for the amount to be reflected in your account. Either way, you should keep track of your transactions to know whether the credited amount is correct. 

Why should I apply for a cashback credit card?

There are three primary reasons why you should apply for a cashback credit card now:

1. Get rewarded through cash

Some credit cards offer discounts, bonus points, and even air miles to compensate for your expenses. For instance, HSBC credit cards provide 4x bonus points for all dining, grocery, shopping, and online transactions. A rewards card it gives you to earn 6% cashback for your first purchase of gas from Caltex and 3% cashback on your succeeding Caltex deals. 


2. You can save money

Imagine how much you can save when you use a cashback credit card for your groceries. For instance, your total payable amount at a grocery store is Php5,000; you earn around Php200 depending on your card. That is worth four kilos of rice in one swipe. 

3. You earn while borrowing

Since credit cards allow you to borrow money from the bank, cashback lets you gain from this mechanism. Borrow and pay while the banks compute for how much to give you in return. Just make sure you pay off the entire amount used before the due date so that your cashback won’t be used to settle the interest charges. 

4. You can manage your multiple cards

Having numerous credit cards seems challenging to manage but knowing each credit card’s features and benefits will help you juggle them efficiently. Use the right card suited to the transaction. Not all cashback credit cards offer a flat rate. Some give a higher cashback perk when used through their partner merchants. 

multiple credit cards

5. You can enjoy other perks

In the Philippines, cashback credit cards also come with a lot of perks, including local and international discount privileges. You can also get to enjoy 0% interest on instalment promos. Some providers also let you maximize the perks with merchant-specific discounts regardless of your cashback privilege. 

What are the best cashback credit cards I could choose from?

If you are considering a cashback credit card, here are a few of the best ones you can apply for:

* Citi Cash Back

Your daily dose of delights from Citibank comprises of 6% cashback on supermarket purchases. Buying your monthly groceries is made profitable with a Citi Cash Back credit card. You can also earn up to 2% of your Meralco bill payments.

citi cashback


* HSBC Gold Visa Cash Back

HSBC highlights all dining transactions with a 5% cashback. If you are someone fond of eating out with friends and family, then it is time to apply for the HSBC Gold Visa card. You can earn up to Php1,200 each month inclusive of all other rebates from other transactions. 

hsbc cashback

* Security Bank Complete Cashback Mastercard

Your cashback credit card from Security Bank lets you earn 1% for shopping, 2% for dining, 3% for utility payments, 4% for gas and 5% for supermarket purchases. You can earn up to Php12,000 cashback each year.

* UnionBank CashBack

UnionBank rewards you with a 1.5% rebate from all of your spending. You can use its Gold MasterCard cashback credit over 300 million ATMs and establishments. UnionBank offers these privileges without the need to be confused with categorized spending. You earn a portion of your money back every time you swipe. 

What should I look for in a cashback credit card?

Although cashback credit cards seem amazingly rewarding, you should still compare specific features of the card before applying. Rewards don’t come cheap and so are cashback. Here are a few things you should check:

Annual fees

With the high amount of money you can potentially earn, cashback credit cards usually come free in the first year, but with a high annual fee for the succeeding years. HSBC Gold Visa Cashback comes with the no yearly fee for life promo when you apply via GoBear today until December 31, 2019. 

Annual percentage rate

Interest rates imposed on cashback credit cards could be higher than classic cards. If the usual going-rate for unpaid balances is at 3.5%, cashback credit cards may charge you with up to 4% when you don’t pay in full. 

Perks and privileges

Be careful when choosing your cashback credit card because some may not allow you to enjoy other privileges. They may provide you with huge rebates but won’t allow you to enjoy installment or discount privileges. Before deciding on which credit card to choose, you should understand your lifestyle and needs first. If buying installments at 0% interest works better for you, then you can set aside your desire for a cashback credit card. However, if you spend time comparing, you’ll realize that most cash back credit cards in the Philippines are packed with rebates. 

credit cards

Your credit score and cashback credit cards

Having a cashback credit card is a privilege, and not all of those who apply are approved to get one. Your credit score plays a huge part in your chances to get approved. You need to maintain a good credit standing so that banks can consider your request. Cashback credit cards are mid-tier cards, and banks grant them mostly to responsible borrowers. 

When should I apply for a cashback credit card?

There are times when your current credit card doesn’t give you much for all your spending efforts. When you have been using your credit card for some time, and you haven’t been rewarded for it, then it is time to apply for the right cashback credit card. Grab that chance to earn from the money you spend in addition to the perks and privileges tied up with the card. 

Everything You Need To Know About Credit Cards in the Philippines

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GoBear team

GoBear team

GoBear Team - Our content creators collaborate to come up with finance articles that will make financial literacy a joy to learn and financial security an attainable goal.