Your first credit card can do a lot to open the door to greater financial flexibility, allowing you to make various purchases without relying solely on cash. Your card can also help you build your credit history, which will be crucial for future financial opportunities.
However, with so many credit card options available, it’s easy to worry about which one is the right one for you. Each type of card comes with its own set of features, requirements, and benefits, and without proper guidance, you might end up with a card that doesn’t suit your spending habits or financial goals.
Long before you finalize your application, it’s a good idea to familiarize yourself with the different types of cards available to you. Here are some credit card options you may encounter when filling up a first-time credit card application Philippines’ banks and card issuers provide:
1) Cashback Credit Card
A cashback credit card is a great option for beginners who want to maximize their everyday spending. This type of card allows you to earn a percentage of your purchases back in the form of cash rebates or vouchers, which you can use to offset future expenses. The cashback rates often vary depending on the spending category, with higher rewards typically offered for essentials like groceries and dining. Additionally, some credit card issuers partner with retailers, restaurants, or fuel stations to give you exclusive cashback bonuses or special discounts on select purchases.
Take the Landers Cashback Everywhere Credit Card by Maya as an example. This credit card is perfect for Landers Superstore members because it offers cardholders up to 5% cashback at Landers. This means that whenever they use it to pay for purchases made at Landers, cardholders will earn cashback points that can be used to offset future grocery expenses. Apart from this, cardholders will also receive a 2% cashback on dining spends and 1% on all other qualified transactions. If you’re a Landers member who wants to optimize savings on essentials, this credit may be a good first choice just for how it rewards you for your everyday purchases.
2) Basic Rewards Credit Card
Basic rewards credit cards are designed for individuals who prefer accumulating points on their purchases rather than receiving direct cashback. With every transaction, users earn reward points that can be redeemed for a variety of perks, including shopping vouchers, travel discounts, and merchandise.
Most basic rewards credit cards, however, require users to collect enough points before they can benefit from them. This system appeals to those who make frequent purchases and are willing to wait for long-term rewards.
One of the key benefits of a rewards credit card is its flexibility. Depending on the issuer’s rewards program, points can be redeemed for different categories; in your case, your program may allow you to customize your benefits. Some banks even offer exclusive deals or partnerships, giving you access to limited-time promotions and higher-value redemptions.
First-time applicants just need to be aware of potential downsides. Many rewards programs have expiration dates on points, meaning that unused rewards may be forfeited if not redeemed within a set period. In addition, some cards require a high level of spending to accumulate meaningful rewards, which may not be ideal for those with lower monthly expenses. To make the most of a rewards credit card, you should consider how often you plan to use your card and whether the redemption options align with your lifestyle.
3) No-Annual-Fee Credit Card
If you’re looking for a simple and cost-effective credit card, a no-annual-fee credit card is an excellent first choice. Unlike other cards that charge an annual membership fee regardless of how often you use them, this type of card allows you to enjoy its benefits without worrying about extra costs. This makes it ideal for first-time credit cardholders who want to start building credit without committing to unnecessary expenses.
A no-annual-fee credit card is perfect if you plan to use your card occasionally or as a backup for emergencies. While some of these cards come with basic rewards or cashback offers, their biggest advantage is the savings you get from not paying a yearly fee. Don’t forget to check if the no-annual-fee benefit is permanent or only applicable for a limited time, as some issuers waive the fee only for the first year.
4) Installment Credit Card
An installment credit card is a great option if you need to make big purchases, but prefer to pay them off gradually instead of in one go. This type of card allows you to convert large transactions into fixed monthly installments, making expenses more manageable. Whether you’re buying appliances or gadgets or even paying for travel and medical expenses, an installment credit card can help you spread out your payments without straining your budget.
A number of credit card issuers offer installment plans with low or even 0% interest, depending on the merchant and promotion. Some cards also provide flexible repayment terms, allowing you to choose the installment period that works best for you—whether that’s three, six, or even 24 months. However, you should always check for additional fees or interest rates that may apply after the promo period. Ultimately, if you’re someone who values financial flexibility, an installment credit card can be a useful tool to make big-ticket purchases more affordable.
5) Secured Credit Card
Building credit from scratch can be quite the challenge, especially if you don’t meet the income requirements for a standard credit card. A secured credit card offers a practical solution by allowing you to apply with a refundable cash deposit as collateral. This deposit minimizes the risk for the bank, making approval easier even if you have no credit history.
In most cases, your credit limit is equal to the amount of your deposit, giving you full control over how much you’re willing to commit. While it requires an initial financial commitment, a secured credit card will surely serve as a stepping stone toward better credit opportunities.
All in all, the right first credit card for your needs can make all the difference in how you manage your finances. Regardless of whether you’re prioritizing savings, flexibility, or credit-building opportunities, selecting the right card from the start sets you on the path toward a more secure and rewarding financial future.
Also Read: Getting a First Credit Card: Things to Remember (Kredittkort Test)
