If you’re like most Filipino consumers, your first credit card is probably “basic” and not fully aligned with your lifestyle. No matter how prudent you are, this is often to be expected as there is a learning curve involved with credit card usage. However, once you’ve familiarized yourself with how credit cards work and how they apply to your financial situation, you should consider getting a second credit card that more closely aligns with your real spending habits.
As a general rule, a second credit card should offer cashbacks, rewards, and other perks that closely align with how you use your money. It can supplement your first card to cover any gaps it has or it can even completely replace it. Either way, you have to make sure that your next card serves to improve your finances rather than hinder them. So, when it’s time to choose a second credit card, here are eight qualities to consider:
1. Makes Sense for Your Current Lifestyle
Ideally, your next card should match your lifestyle. For instance, if you are already a Landers Superstore shopping club member, complete the Maya card application within the app to get the Landers Cashback Everywhere Credit Card. This credit card is specially designed for Landers members and may not be completely compatible with other individuals. On the other hand, if you already shop at Landers, this credit card can give you substantial savings thanks to its generous cashback terms on Landers purchases and a very wide range of other qualified purchase categories. Such a card with aligned benefits can naturally add to your savings over time, stretching your peso further than you imagined.
2. Exclusive Membership Perks
Some credit cards come with unique membership perks, giving you access to exclusive services or rewards. The aforementioned Landers credit card, for example, also doubles as a Landers membership card, saving you time when you check out purchases at any Landers Superstore. These perks can offer you extra value that often transcends their advertised main benefits.
3. Low Annual Fees and Interest Rates
Annual fees and interest rates can greatly impact the value you get from your credit card. For many rewards cards, the annual fees are enough to offset typical earnings from cashback, making them an unwise choice if your goal is to make room in your finances. Be sure to look for a card with reasonable annual fees compared to your rewards earnings.
Fortunately, credit cards with no annual fees are becoming more prevalent in the Philippine market. The previously mentioned Landers credit card can reduce the burden of having multiple cards and allow you to gain the full value of your rewards, making it a wise choice for your second credit card.
4. Easy Cashback Redemption
If you’re getting a second credit card specifically for cashback rewards, consider how easily you can redeem your rewards. Some cashback cards seem generous on the surface but, in reality, you may be forced to undergo complicated redemption processes that reduce the value of your rewards or limit the chances that you can claim them. Fortunately, some cards offer simple redemption processes that make it easy to enjoy your rewards with just an email or a few taps on your phone.
5. Flexible Payment Options
If you’re getting a second card to better manage big-ticket purchases, consider choosing one that lets you convert large purchases into monthly installments. Alternatively, if you have a healthy income and can pay for card purchases with no trouble, it’s better to just choose a card that offers better cashback rates for larger value purchases so that you reduce overall financial burden rather than add to them.
6. Credible Digital Security Features
This area has less to do with the card’s reward and payment features and more to do with the reputation of the card provider in shielding cardholders from online threats. At the bare minimum, all your credit cards should offer security features that safeguard your financial information like EMV chips, tap-to-pay NFC, real-time transaction alerts, and other fraud prevention measures.
7. Seamless Digital Access
Lastly, you don’t want to have to control your second card over the counter or on a mobile app with a bad user interface. When presented with similar options for your next card, go with whichever has the better digital experience. A good app can make a big difference in how well you can optimize your card usage, protect your information, and how easily you can redeem your rewards.
Keep Your Finances Flexible by Choosing the Right Card
A second credit card may provide financial breathing room and more opportunities but only if it matches your needs. If you already have a credit card, take the time to shop around and consider the features on this list. Being careful in your selection should help you avoid paying unnecessary fees and further expand your financial horizons, possibly even saving you money in the process.