Most people start with a single credit card, often chosen for its easy approvals process or a specific introductory offer. However, getting another card down the line can provide benefits such as increased purchasing power, better rewards, and more financial flexibility as your financial needs evolve. With so many options available, choosing the right one requires careful consideration.
Remember that your choice of a new card shouldn’t be just about the one with the flashiest perks. It should complement your existing cards and fill in any gaps in rewards, benefits, or financial management needs. Once you understand what to look for, it will be easier to find the card that gives you the best possible value. Choose one with an easy credit card application Philippines’ residents recommend, and you’ll soon have yet another helpful financial tool at your disposal.
Let’s look at some essential criteria to consider when selecting a new credit card:
1) Interest Rates (APR)
It can quickly become expensive to carry a balance on your credit card if the interest rate is too high. While some credit cards offer promotional 0% APR periods, regular interest rates can vary significantly depending on the issuer and your credit score. If you’re planning to pay off your balance in full each month, APR might not be a major concern. However, if you anticipate carrying a balance occasionally, even a small difference in rates can save—or cost—you thousands of pesos over time.
2) Rewards and Cashback
The right rewards credit card can turn everyday spending into valuable benefits, whether in the form of cashback, points, or miles. But not all rewards programs operate the same way. Some cards offer flat-rate rewards that give you the same percentage back on every purchase. Others provide bonus categories with higher earning potential for specific spends, like how the Landers Cashback Everywhere Credit Card by Maya rewards grocery shopping trips at Landers Superstore with up to 5% cashback.
It’s important to match your credit card rewards to your actual spending patterns. A travel credit card packed with airline perks won’t be useful if you rarely fly, just as a grocery-focused card might not provide the best value if you dine out frequently. Additionally, consider how you’ll be redeeming your rewards; some programs offer straightforward cashback as a statement credit, while others may require navigating complex redemption systems with fluctuating point values.
3) Annual Fee
Some of the most rewarding credit cards come with annual fees, but are they worth it? That depends on how much value you’ll get in return. A premium travel card with a USD 100+ or PHP5,000+ annual fee, for example, might justify its cost if it includes perks like airport lounge access, travel insurance, or high reward rates. But if you won’t take full advantage of these benefits, a no-annual-fee card may be the better choice.
4) Foreign Transaction Fees
Frequent travelers and online shoppers who buy from international merchants should pay close attention to foreign transaction fees. Some credit cards charge an extra 2% to 3% on purchases made in a foreign currency, which can quickly add up when traveling abroad or making cross-border transactions. Many travel credit cards and premium rewards cards waive these fees, which makes them a smarter choice for international spending. And even if you don’t travel often, avoiding unnecessary fees on occasional international transactions is always a plus.
5) Credit Limit
A higher credit limit doesn’t just give you more spending power—it can also improve your credit utilization ratio, a key factor in maintaining a strong credit score. The ideal credit utilization rate is below 30%, meaning if your limit is too low, your score could take a hit even with moderate spending.
Certain issuers offer automatic credit limit increases after a period of responsible use, while others require you to request a higher limit manually. Before applying, always check whether the card offers a starting limit that aligns with your needs and spending habits.
6) Additional Perks
Beyond rewards and low fees, many credit cards come with extra perks that can enhance your overall experience. These may include purchase protection, extended warranties, fraud liability coverage, and exclusive discounts on select brands. Some premium cards also offer travel-related benefits, such as free checked bags, trip cancellation insurance, and priority boarding. While these perks shouldn’t be the only deciding factor, they can add major value if they align with your lifestyle.
7) Quality of Customer Service
When an issue arises—like unauthorized charges, a billing dispute, or a lost card—you’ll want a credit card issuer with reliable and responsive customer support. Poor service can turn a minor problem into a frustrating ordeal, so it’s worth researching how issuers handle customer inquiries.
Look for credit card companies that offer 24/7 support, multiple contact options (phone, chat, email), and a well-designed mobile app for easy account management. Reading customer reviews and checking issuer ratings can give you a sense of how efficiently they resolve issues.
A well-chosen card is more than just a payment tool—it’s a strategic asset in managing your finances wisely. Carefully weigh factors like fees, interest rates, and benefits so that you can make a choice that enhances your spending power without unnecessary costs. Ultimately, the best credit card for you is the one that aligns most neatly with your financial habits and long-term goals.
