What do you consider when you look for a credit card?
People have various notions when it comes to credit cards. What do you look for in a credit card? Of course, aside from the ability to purchase items without actual cash, you can even earn miles, rebates and rewards. However, do you take time to read the credit card’s fine prints?
The best way to maximize the benefit of credit cards is to know the fine prints. Fine prints are certain terms and conditions usually written in smaller fronts. We may say that these are lines usually ignored by most people. Reading small prints is no fun at all, but taking time to understand it can save you from financial disaster.
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Security Bank Credit Cards
- Complete Cashback MasterCard
If you usually go shopping for your family needs in groceries which accept credit cards, then this card may give you the best deal. You can earn up to 5% rebates when you charge your spendings under five basic categories: groceries, gas, utilities, dining and other shopping items. The rebates are automatically credited to your balance.
The items you charge through online, mail order, or telephone orders are not subject for rebates. Even if you charged your orders in Philippine pesos, if you make purchases overseas, you will not earn any rebates. Utility bills you have enrolled in your account to be charged on the credit card is also not counted for rebates. The maximum rebate you can get is only up to P1, 000 a month. This includes the rebates earned by supplementary cards.
- Classic Rewards MasterCard
You can get 1 reward point for every P20 charged on the Classic Rewards MasterCard. This card has eSecure features which makes online shopping safer. There is no foreign transaction fees and the first annual fee is waived.
- Gold Rewards MasterCard
GoldRewards MasterCard has higher credit limit. There is no foreign transaction fee. Security bank uses the prevailing exchange rate for the credit cards. You can earn 1 point for every P20 charged on the card.
- Platinum Rewards MasterCard
If you usually deal with both dollars and pesos, you may opt for Platinum Rewards MasterCard. This card has Dual Currency Billing Options. Also, you can get free access to exclusive airport lounges and have a complimentary travel insurance. Earn 1 point for every P20 spent.
- Click MasterCard
Automatically get up to 5% rebates on your in-store and online purchases. The minimum in-store spend is P15, 000, while the maximum spend online if P15,000. The card is secured with a one-time-password (OTP).
- Fast Track Secured Credit Card
With Fast Track Secured Credit Card, you will surely get a credit card application approval. Why? Because it is secured with your account funds. The processing day is as short as three days. the minimum funds in your Savings account must be P15,000. Your credit limit will be 80% of your hold-out.
- Annual Membership Fee
While most people will concentrate on the interest rate, you must not ignore the processing fees and the annual fee. These fees are non-reimbursable. If you cancel your credit card, you will not be able to get it back even if you don’t use your card for the whole year.
There could be various reasons why your card may not be honored. The store may not be a partner of the bank, of there could be some technical issues. Should this happen to you, the bank will not be liable. Also, if there is any dispute between you and the store regarding the charged item or service, you will still be liable to pay the charged amount on the card.
- Loss of the Card
In case you lose your card, it is your responsibility to call the bank and report the place, date, last purchases charged on the card and the circumstances how it was lost. Then, make a written report 24 hours after you informed the bank via call. If you fail to do so, the bank will not be liable in any way should your card be used for fraudulent activities.
- Credit Limit
Credit cards have credit limits. This way you will not overly spend way beyond your capacity to pay. You may request for a credit limit, however, it is still subject to bank’s discretion. The bank will evaluate your creditworthiness based on your credit history, salary, and other financial responsibilities.
- Statement of Account
It is your responsibility to check your bill for any inaccuracies and inform the bank as soon as possible. If you don’t report any discrepancies, then the bank will consider the bill correct. Pay P50 for every page if you want to have your bill (beyond 3 months old) reprinted.
- Payment Charges
You need to know the fees Security bank can charge you to avoid delinquencies in payment and bill shock.
Upon finalizing your credit card application, you will be agreeing to pay all the charges on or before the due date as stated on your bill. If the due date falls on a weekend or a holiday, you are obliged to pay the amount due on the last working day before that date.
There will be some people who thinks that it will be fine to pay on the earliest working date after the due date. Unfortunately, if you pay AFTER the due date, you will be charged with the interest rate and late payment charges.
If you think you can’t pay the whole outstanding bill, you pay at least the minimum amount due which is P500 or 4-5% of the amount due. This will not save you from the interest rate. You will still be charged with the interest rate as long as you don’t settle the whole bill. By paying the minimum amount due, you just avoided the late payment charges.
You will be mistaken if you think that you will be charged with a monthly interest rate if you fail to pay your bill. The interest rate of your card is based on your average daily balance. Each day your debt is getting bigger, so settle your balance as soon as you can.
If you pay over-the-counter, your payment will be posted within two to three banking days.
- Disclosure of Information
Your information may be disclosed to third parties, especially to credit bureaus. This is to record your credit history and payment attitude. In case you apply for loans in banks and other licensed money lenders, your credit record will be pulled out from the credit bureaus. This way the banks and money lenders can evaluate your creditworthiness.
In case you failed to pay your outstanding balance, your account will be referred to the collection committee. All the expenses incurred due to collection and attorney’s services caused by your delinquency in paying will be charged on you. This is equivalent to 25% of your unpaid balance.
Credit cards impose financial responsibilities. Charge what you can pay with your current financial capability. And know the other fine prints such as the maximum rebates and rewards you can earn. Be a responsible cardholder to prevent spiraling debt.