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High Priced Reward Cards

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DESCRIPTIONS:

Have you ever wondered if it’s worth it to pay a higher annual fee for higher (or better) credit card rewards? The answer is this: It depends. Paying more in annual fees for a card that promises better rewards can save you more money if:

(a) you use the card often enough to get as many rewards as possible, and

(b) the rewards are actually useful to your current lifestyle.

Let’s say that a Card A has an annual membership fee of P3,500 and offers one travel mile for every P150 spent. If you are a heavy user and can charge as much as P400,000 on your card monthly, you get over 2,600 miles a month. In one year, you will have more than enough points to get multiple free flights, or at least very good upgrades.

This credit card is obviously better than Card B, which has a lower annual fee of only P1,500 but only offers one travel mile for every P300 spent. Even if you charge P400,000 monthly on this card, you only get 1,300 miles a month – half the number of miles you will get from Card A.

In the end, the P2,000 difference in the annual fees of Card A and Card B is more than offset by the number of redeemable miles you get from using Card A.

Of course, getting this many miles only makes sense if you actually like to travel. Remember that most miles do expire; you have to use them within a certain period, or they will be confiscated. Before you even apply for a miles-earning card with better rewards conversion but a higher annual fee, be sure you actually have travel plans. Determine if you have time and resources to go on a trip by the time you have enough miles to redeem. Otherwise, all your points will just go to waste.

If you are not an avid traveller, then scout for a card that offers other perks, such as restaurant discounts or grocery rebates. Use the same comparison we did above to determine whether the higher annual fee is worth paying for the points or rewards you can get.



Featured Credit Cards:

HSBC Premier Credit Card


FEATURES:

<ul>
<li>Perpetually waived annual fee for the Primary and supplementary cards</li>
<li>No worries as you shop, dine and travel with the HSBC Premium Credit Card because it is accepted in 24 million establishments worldwide.</li>
<li>Earn 1 Rewards point in every Php5 spent and use these to redeem one of a kind Rewards Item.</li>
<li>Lost your card? HSBC will replace it for you the next day with emergency cash advance of $2,000.<span style="mso-spacerun: yes;">&nbsp;&nbsp; &nbsp; &nbsp;&nbsp;</span></li>
<li>Relish on magnificent discounts when dining, shopping or just going around the world for fun in over 40 countries and territories.</li>
<li>Share the benefits of being an HSBC Premier Credit Cardholder and still manage their spending.</li>
</ul>

MASTERCARD BLACK – BDO Credit Card


FEATURES:

  • Enjoy FREE membership for both your primary card and supplementary card for the initial year!
  • Earn rewards points on every Php50 worth of transactions on your BDO MasterCard Black!
  • Get special assistance whenever you travel with BDO Travel Desk!
  • Stay in the comfort of your homes and let BDO Black MasterCard do the payment of your monthly utility bills!
  • Supervise your finances with simplicity as you get lots of savings and discounts!
  • Avail of 24/7 customer service whenever you need it!

LJC Credit Card


FEATURES:

  • Monthly membership fee of Php80 and P60 for the extension
  • Get year round discounts
  • Avail of birthday discounts and enjoy fine dining all with RCBC Bankard LJC credit card

BDO HOME MASTERCARD


FEATURES:

  • Earn rebates for your card that is up to Php2000!
  • Get a special 1% rebate via cash coupons for all MERALCO residential accounts
  • Relish on an interest rate of just 3%
  • Go for a practical lifestyle as BDO MasterCard Home through EasyPAY Installment programs!
  • Acquire up to 50% Cash Advance Limit!
  • Enjoy a variety of discounts, promos and perks with BDO MasterCard Home!

Featured Articles:

Should you let your kid have his own credit card?

Fact: there is already an increase of teens and college students who have their own credit cards. Credit card companies now aim on the two groups since they are the ones who spend more money than adults.

Educate your child on how to manage spending with a credit card. Parents an even use instances in the present state of affairs as an example to discuss to kids the pros and cons of credit cards.

Smaller credit limits are usual with these types of cards and while it may be easy to apply for one, credit card companies charge large interest rates and fees to the teenage credit card holders.

People who are below 18 are not legitimate in obtaining credit cards without the consent of their parents. Unfortunately, some kids fill out forms and receive credit cards without the knowledge of their parents. To avoid this, talk to them and help them realize the importance of beginning a solid credit history with their first card. Emphasize that it is of utmost importance to their future.

As a parent, start by reading the guidelines with your child. Make sure you call to attention all the terms written on the fine print. Avoid coming to the rescue if the bills get way out of control. This will teach him to be responsible in handling his money. A credit card spent by a teenager and paid by his parents initiates bad credit habits

Let the child bear in mind that his credit card sho uld be used in emergencies only. Monitor ALL his spending activities. Some credit cards even allow the parents to create their own credit limit for the supplementary cards. This is very logical especially if you are too busy with your career.

Parents can help their kids spend sensibly with the correct use of credit cards. At this early stage, it is better to prepare them in the reality of life by teaching them not to abuse its benefits.