Things you didn’t know about credit cards and are afraid to ask

Your credit card is more than a piece of plastic in your wallet. Used the right way, it's a financial tool that can earn you rewards, build your creditworthiness, and give you flexibility when you need it most.

Using a credit card is a good way to manage payments. But other than buying things, how else can a credit card work for you? You can:

• Use it to make deferred payments
• Use it to enjoy perks, discounts, and earn rewards
• Use it to build your credit history

A credit card is a financial tool that allows you to make purchases through an assigned credit line granted by a financial institution–aka the credit card issuer. When you use your credit line, you have to pay it back. With credit cards, you pay for your purchases at the end of a billing cycle, which is summarized in a Statement of Account that lists all card purchases and transactions within that period.

If you're a credit card beginner, this guide walks you through everything you need to know—from how credit cards work to choosing the right type for your lifestyle. Understanding the different types of credit cards available to you is key to choosing the right one for your needs. The types you'll commonly encounter vary based on their features, rewards, and target users.

Common types of credit cards in the Philippines

When exploring the types of credit cards in the Philippines, you'll find options suited for every lifestyle and financial goal. Here's a quick overview of the most common ones:

• Rewards credit cards—Earn points for every purchase, redeemable for gifts, travel, or vouchers.

• Cashback credit cards—Get a percentage of your spending back as cash credits.

• Travel credit cards—Designed for frequent flyers, offering miles, lounge access, and travel perks.

• Secured credit cards—Ideal for those building credit from scratch, backed by a deposit.

• Co-branded credit cards—Partnerships between banks and brands offering exclusive perks for loyal customers.

What you can do with a credit card

Used responsibly, a credit card is a useful tool in your financial life. Here are the things they can help you with.

1. Defer payments—Instead of cash or debiting money directly from your bank account, you can defer your payments using a credit card. Some credit cards also offer soft payments through installment schemes, such as Balance Conversion, Balance Transfer, and the most popular 0% Installment.

2. Enjoy perks and earn rewards—Your card isn't just a way to pay, it's a way to get more out of what you're already spending. Earn Rewards Points that you can convert into airline miles, cashback, gift vouchers, and more. Apart from this, you can also take advantage of limited-time promos such as discounts, dining deals, installment options, bonus points, and more. Learn how to redeem your points and turn every purchase into real value. Learn how to redeem your credit card points and turn every purchase into real value.

3. Build your “credit history”—Using a credit card responsibly is a way to establish creditworthiness. It tells financial institutions that you pay what you owe which makes them more willing to let you take out loans in the future, based on your credit history.

Credit card benefits for Philippine cardholders can go beyond simple purchasing power. Depending on your card, you may access exclusive dining privileges, travel insurance, airport lounge access, and cashback on everyday spending.

What a credit card cannot let you do

Credit cards are often misunderstood. Here are things you should not do with credit cards.

1. Use it to spend beyond your means—A credit card extends your financial capacity through an assigned credit limit, but it does not mean that you should use it to spend unnecessarily. Mismanaging your credit card purchases leads to bad debt, which take the form of finance charges on top of your purchases.

2. It spares you from fraud—Credit cards are magnets for criminals, so it’s important that you secure your credit card information. Should you find yourself a victim of credit card fraud, you can contest any unauthorized transactions on your credit card statement. One of the most common targets of fraudsters is the OTP (one-time password) sent via SMS. They resort to tricks which are designed to get you to disclose to them your OTP. You should never give your OTP to any person for purchases or transactions that you did not make personally.

3. Use it to buy just anything—Every credit card has a credit limit, or the maximum amount you can have as your outstanding balance. If you spend beyond your credit limit, you may be charged with an overlimit fee and subsequent transactions will be declined.

Money tip: Pay in full and on time.

Paying your credit card bill in full and on or before the due date is one of the best money habits you can build. It helps you avoid interest or finance charges, keeps your balance manageable, and lets you make the most of your credit card benefits.

If paying the full amount isn't possible this month, make it a goal to pay as much as you can—and always pay at least the minimum amount due on time. Doing so helps you avoid late payment fees, keep your account in good standing, and protect your credit history.

Every on-time payment brings you closer to a healthier financial future. With consistent payment habits, you'll be better positioned to maintain a good credit standing and qualify for financial opportunities when you need them.

Take the next step toward smarter spending. Browse the different Metrobank credit card types and choose the one that best fits your lifestyle.