Top 5 Cashback Credit Cards to Help you Earn while you Spend

 

Do you love shopping to your heart’s content? Trying out different restaurants and tasting every cuisine? You’re a big spender at heart and love to reach your limit with your credit card, but do you know you can earn cashback on your every purchase and save money while you spend? Unbelievable, right? But you heard it right. Earning cashback while swiping your credit card can now be easy as 1,2 and 3!

Minutes to Read: 8 minutes

Age Bracket: 21 – 40 years old

 

What is a Cashback Credit Card?

 

Credit cards are considered a status symbol before due to their high-income requirement, the ability to purchase now and pay later, and a whole lot more reasons. However, since Filipinos started to adopt the cashless mode of payment, credit cards have turned from a status symbol to a financial necessity. Many online shops have opened over the years, and the use of credit cards is now accessible to almost every city in the Philippines. Credit card is a need for today’s new normal.

 

Besides the ability to pay cashless through a credit card, it also became a convenient tool for managing your finances. Just make sure to choose the right one and swipe responsibly. Credit cards may usually be associated with debt due to the card holder’s large spending habit and inability to pay it off; a cashback credit card may give you a small help to save money thanks to its cashback feature.

 

Cashback credit cards, also known as rebate credit cards, are a type of credit card that allows you to earn cash rebates or cash back on your every purchase. It is much simpler than other rewards credit cards since you’ll know exactly how much you’ll be paid back without the complicated point systems other credit cards have. You can earn cashback based on the cashback rate your card has. This can go from 0.20% to 6%. This percentage will be applied to your monthly purchases using your credit card to determine how much you will be paid back.

 

For instance, you made ₱10,000 worth of purchases on your credit card this month, and your cashback rate is 4%, which is ₱4 per ₱100 spent. To calculate the amount of cashback you earned this month, you have to multiply your total amount spent by the cashback rate:

 

(total amount spent) x (cashback rate) = cashback earned

₱10,000 x 4% = ₱400

 

Therefore, you will earn a total amount of ₱400 for this month’s purchase. This cashback earned can be redeemed in different ways. Usually, this cashback is automatically accredited to the cardholder’s account every month, and the issuer may not provide redemption of these cash rebates. Some do not automatically credit this cashback to your account; you still have to redeem it online or via SMS. There are still more ways to redeem your cashback that you can choose from. It’s best to ask your credit card issuer for their methods for redeeming cashbacks to find which one is more convenient for you.

 

 

What are the types of Cashback Credit Cards?

 

Knowing about cashback credit cards before getting one can be considered an advantage, so you’ll learn how to maximize these rewards. Note that cashback credit cards are divided into two types: The variable and the fixed rate. Make sure to determine which of these types is your cashback credit card so you’ll know how to earn more.

 

●      Variable Cashback Rates Card

 

Cashback credit cards with variable cashback rates offer tiered card rewards. This means there are different cashback rates for different spending categories, such as dining, shopping, or fuel purchases. Higher cashback rates can be earned in specific categories, while other spending categories earn a lower rate. That is why choosing a cashback card that suits your spending habit is essential. That way, you will earn and maximize the rewards you can make in a month.

 

●      Fixed Cashback Rates Card

 

Everything is much simpler and straightforward with a cashback credit card that offers a fixed cashback rate. You will earn a fixed percentage rate across all purchases, whether for shopping, dining, or anything! This way, you can earn rebates even if purchasing in a different spending category. This is suitable for those who do not have a specific spending category habit.

 

 

How to choose the best Cashback Credit Card?

 

Many factors can be considered when choosing a credit card for you. This includes your spending habit, lifestyle, and affordability. However, regarding the credit card’s features and benefits, what should you consider to decide if it’s the right one? Here are some things you might want to consider when choosing a credit card.

 

1. Cashback Categories

 

We already discussed that each credit card offers a variety of cashback rates in each spending category, depending on your credit card. When choosing one, consider where you spend most and look for cards with a high cashback rate in that category. If you’re a shopper, look for a card that offers high cashback rates on shopping purchases. Once you have all the offers that suit your spending habit, you can start there.

 

1. Cashback Limit

 

Some credit cards include a rebate cap, a limit on the amount of cashback you can earn in a month. The usual maximum limit is ₱1,000. If you think you can make more than that, look for a credit card with no cashback limit. This way, you can maximize the rebates you can earn in a month.

 

1. Cashback Eligibility Period

 

You can usually earn cashback all year round. However, some credit cards offer cashback only at a specific time. Seasonal rebates are provided in some spending categories. An example is the HSBC Gold Visa which offers 1% cash back on department store purchases from May to August for the back-to-school promo.

 

 

Best Cashback Credit Cards

 

There are a lot of Cashback Credit Cards available in the market, and choosing which one to get is the tricky part. You can look for an online comparison platform to compare different credit card offers and see which one you prefer. Furthermore, I have listed some of the credit cards you might consider getting if you still have difficulty choosing.

 

 

1.    Citi Cash Back Credit Card

 

Earning rebates on your daily essentials has never been easier with Citi Cash Back Credit Card. Saving money has never been associated with credit cards, but Citi Cashback will allow you to receive 6% cashback on your supermarket purchases when you use your card. Paying your Meralco Bill will also let you earn 2% cashback. And that’s not it; what’s a credit card without its perks and benefits? Citi Cash Back card includes exclusive perks and discounts from partner establishments in over 90 countries. Amazing!

 

            Features and Benefits

 

• Good for: Shopping
• Ideal for: cardholders who want to save on essentials
• Earn up to 6% cash back on supermarket purchases.
• Earn up to 2% cash back on Meralco Bills payments when you pay through CitiBank Online
• Earn 0.20% cash back on other purchases made on your card
• Accumulated cash back will never expire; you can use it anytime.
• Yearly savings of as much as ₱15,000
• Exclusive perks and discounts from partner establishments in over 90 countries

 

            Fees and Charges

 

• A gross annual income of at least ₱180,000
• Annual Fee: ₱4,500 (waived for the first year)
• Interest Rate: 2%
• Late Payment Fee: ₱1,500 or the unpaid minimum amount due (whichever is lower)

 

 

2.   EastWest Visa Platinum

 

Spending becomes rewarding with EastWest Visa Platinum. Receive cash rebates anytime, anywhere, on your monthly purchases. Great for shopping and dining with your friends or family. It is suitable for practical buyers who want the most value for their money. It also includes exclusive lifestyle offers and irresistible rewards that benefit the shopper and diner in you.

 

Features and Benefits

 

• Good for: Shopping
• Ideal for: cardholders who love to shop and dine
• Earn 3% cash back on your purchases made at department stores and dining establishments
• Earn 0.3% cash back on your purchases on other spending categories or establishment
• Includes a complimentary travel accident and inconvenience insurance of up to ₱20 million

 

            Fees and Charges

• A gross annual income of at least ₱480,000
• Annual Fee: ₱2,750
• Interest Rate: 2%
• Late payment fee: ₱1,500 or the unpaid minimum due (Whichever is lower)

 

 

3.   HSBC Gold Visa Cash Back

 

Earn rebates on every swipe? HSBC Gold Visa Cash Back is the best choice for you. The spender side of you will be thrilled to have a free annual fee when you spend at least ₱100,000 yearly! Get exclusive perks and discounts with different cash-back rates on various spending categories.

 

Features and Benefits

 

• Good for: Shopping
• Ideal for: practical shoppers who shop and pay bills online
• Earn 5% cash back on your dining expenses all year round
• Earn 1% cash back on your back-to-school purchases at the department stores from May to August
• Earn 1% cash back on your international purchases made overseas in January, April, May, and December
• Earn 0.5% cash back on your purchases on other spending categories all year round
• Earn 3% cash back on your fuel purchases at participating Caltex stations nationwide.

 

            Fees and Charges

 

• A gross annual income of at least ₱200,000
• Annual Fee: Free (when you reach the annual spending requirement of ₱100,000)
• Interest Rate: 2%

 

 

4.   Petron-BPI Mastercard

 

Cash-back credit cards are not just for shoppers but also for car owners who need a credit card to bring on every road trip. Drive with your tank full with Petron-BPI Mastercard. Enjoy an exclusive cash rebate on your purchases at Petron and receive a ₱200 free fuel voucher that you can use as a welcome gift. It also comes with flexible and convenient installment plans.

 

            Features and Benefits

 

• Good for: Fuel
• Ideal for: Car owners who are on the road every day
• Earn a 3% rebate on your fuel purchases at participating branches of Petron Nationwide
• Convert your credit limit to cash and pay it in installments up to 36 months
• Multiple installment options with real 0% installment, buy now pay later, and additional installment limit

 

            Fees and Charges

 

• A gross annual income of at least ₱180,000
• Annual Fee: ₱1,550 (Waived for the first year)
• Interest Rate: 2%
• Late payment fee: ₱850 or the amount minimum due (whichever is lower)

 

 

5.   Robinsons Cashback

 

Who would’ve thought shopping at Robinsons would be as it is? It just got better with their Robinsons Cashback! If you’re a loyal customer of Robinsons, this might be the perfect one. Earn exciting cashback when you shop at their store, but that’s not it; you can still earn cashback even when you shop at other merchants. Possibilities are not limited to Robinsons; spend as much as you want and still earn exciting rewards.

 

            Features and Benefits

 

• Good for: Shopping
• Ideal for: cardholders who are on a strict budget
• Earn up to a 3% cash rebate on your purchases worth ₱3,500 and above when you shop at Robinsons and their affiliated stores.
• Earn up to a 1% cash rebate on your purchases worth ₱3,500 and up at other merchants.
• Enjoy exclusive rewards, discounts, and special promos when you shop at Robinson’s Retail Brand.
• Enjoy a flexible installment plan to manage your credit card monthly bills

 

            Fees and Charges

 

• A gross annual income of at least ₱180,000
• Annual Fee: ₱2,500
• Interest Rate: 2%
• Late Payment Fee: ₱750

 

 

Should I get a Cashback Credit Card?

 

Cashback credit cards are simple yet convenient if you want a credit card but can save money while you spend. Aside from saving money, it can help you build a good credit history that might be a massive advantage if you’re planning to apply for a financial product in the future, such as loans or another credit card.

 

However, everything that’s good comes with its cons. Given the idea of earning rebates while you spend, the downfall will be the expensive amount of annual fees that go with it when you get one. The first year might be waived, but make sure you can afford to pay it for the following years. And like what I’ve mentioned above, some banks provide a limit on how much you can earn. This means that you can’t make as much as you want.

 

Despite the cons mentioned, we can still consider the idea of getting a cashback credit card. They might charge an expensive amount of annual fee. But if you can afford it, then go for it. You can also use your earned cashback to pay that fee. Limits to earning cashback might be annoying, so go for a credit card that does not offer a limit. If you want to have a cashback credit card, go for it.

 

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