Not all credit cards were made equal. I would say there are around 5 tiers or levels of credit cards however you want to put it. Most people will be getting their cards from tier 1-4 while tier 5 is for the ultra wealthy and high net worth individuals.
Although the Philippines does not have a public credit score system like abroad, banks do keep track of our credit score and credit history which they will take into account when approving or declining you when you apply for a credit card.
Tier one
Tier one credit cards are typically where someone starts their credit card journey and we can call them credit builder cards. Most cards under tier one will have NO annual fee and don't offer any points or perks.
These cards are great for building your credit score with your bank and show them you are financially responsible. So guys please pay on time and in full!. Take note that these cards only give you a small credit limit depending on your card and start at maybe ₱10,000 to ₱20,000.
For students and anyone who has never owned a credit card this is where you can start your credit card journey as these are mostly secured or balance transfer cards.
Examples of tier one cards are:
EastWest 1st Mastercard
BPI Family Savings Mastercard
BDO ShopMore Mastercard
Metrobank M Lite Mastercard
Security Bank Fast Track Secured
PNB Ze-Lo Mastercard
Maybank Standard Mastercard
RCBC Bankard InstaCard
Tier two
Tier two credit cards typically have NO annual fee but do earn some kind of cash back (most common) or rewards. Spend multipliers for the tier two reward cards are usually quite low but hey its better than tier one where you get nothing. Credit limit can start from around ₱20,000 to ₱60,000 depending on your card and bank.
Examples of tier two cards are:
BPI Blue Mastercard
BPI Edge Mastercard
UnionBank Play Everyday Visa
HSBC Gold Visa Cash Back
Metrobank Vantage Visa
Citi Simplicity+ Mastercard
Citi Cash Back Mastercard
BDO American Express Cash Back
Security Bank Complete Cash Back Mastercard
PNB Essentials Mastercard
China Bank Cash Rewards Mastercard
China Bank Freedom Mastercard
Remember your income doesn't always have to be high and you can get approved for these credit cards as long as you have good credit standing and history with your bank!
You might be interested in: How to Know How Much Your Points/Miles are Worth
Tier three
Now tier three is where the fun starts and where it starts to get interesting and lucrative in terms of rewards. Cards in tier three will allow you to earn a lot of points for airlines, hotels, reward redemption etc. Perk such as free checked in baggage, priority boarding, and some form of airport lounge access usually come with cards in this tier.
You'll also start to see co-branded credit credit cards such as BDO's Cathay Pacific American Express credit card in this tier. Unfortunately, there aren't any hotel co-branded credit cards, except for UnionBank's Cebu Parklane International Hotel Visa card. With enough international hotel chain presence here in the Philippines we hope to one day see a Marriott, Hilton, or Hyatt co-branded credit card in the future.
Some cards in tier three also come with a good sign up bonus depending on the bank and the time you apply for the card so make sure to be updated!
Citibank PremierMiles Mastercard has an on going sign up bonus of 30,000 miles when you apply for your credit card before July 31! Click HERE to apply online before the promo ends!
Examples of tier three cards are:
BPI Skymiles Mastercard
BPI Gold Mastercard
Citi PremierMiles Mastercard
HSBC Platinum Visa
UnionBank GetGo Visa Platinum
Security Bank Platinum Mastercard
BDO Titanium Mastercard
BDO Visa Platinum
BDO Cathay Pacific American Express
BDO Diners Club Premiere
Metrobank Travel Platinum Visa
PNB-PAL Mabuhay Miles Mastercard
RCBC Bankard Black Card Platinum Mastercard
RCBC Bankard Visa Platinum
RCBC AirAsia Visa
EastWest Singapore Airlines KrisFlyer Platinum Mastercard
Annual fee ranges from around ₱3,000 to ₱8,000 depending on your card and credit limits starting at more or less around ₱60,000 to ₱200,000. Tier three is probably the most broad among the credit card tiers and where rewards really start to get lucrative. This means banks will really need to see if your financial information will reflect your ability to handle high credit limits.
Tier four
Tier four, which is also known as "premium" credit cards is as prestigious as it gets for most people with more perks, rewards, better spend multipliers and some with unlimited airport lounge access. Cards in tier four typically have the same annual fees as those in tier three but can go up as high as ₱18,000 or could be absolutely free as well depending on the card and bank. Credit limits also start high which could range from ₱200,000 to ₱1,000,000.
You'll also rarely see any credit cards with cash back at tiers three and four as they are mostly focused on a reward system based on points or miles. Generally we don't often see banks offer sign up bonuses here in the Philippines for some reason, but there are times like now that they do pop up every now and then so don't miss your chance!!!
Citibank Prestige Mastercard has an on going sign up bonus of 120,000 points when you apply for your credit card before July 31! Click HERE to apply online before the promo ends!
Examples of tier four cards are:
Citi Prestige Mastercard
Metrobank World Mastercard
BPI Visa Signature
Security Bank World Mastercard
China Bank World Mastercard
RCBC Bankard Visa Infinite
RCBC Bankard World Mastercard
EastWest Singapore Airlines KrisFlyer World Mastercard
Most of the time you'll only need one card from tier four (preferably one with unlimited lounge access) as you'll be doubling up on some repeated benefits. Unless of course you spend and travel like crazy then by all means get as much cards as you want.
Tier five
The most common thing about cards under this tier is that they are all by invitation cards only. The banks has to look at your financial information and think something along the lines of "this is the kind of guy we'd like to have as a card member" lol.
Cards in tier five are aimed at the ultra wealthy, high net worth individuals or celebrities so if you've got a few hundred million to spare chances are you'll most likely get invited to one of these cards if you bank with them.
As for the perks of course it's a notch up above tier four cards with more exclusive access to certain programs, extremely high credit limits and invites to invitation only events. The perks do become questionable if you aren't into mixing with celebrities and aren't interested in perks that focus on exclusivity and invitation only programs and events.
Examples of tier five cards: are
BDO World Elite Mastercard
EastWest Priority Visa Infinite
In the end these cards end up being a flex card to show everyone you're loaded or a status symbol for a having a card that most people don't have and that you are all about that luxury lifestyle.
Bottom line
Although there are several credit cards to choose from, in the reality most of people's cards will come from tier two or three. It won't make much sense to have more than one or two cards from tier four as you'll only be able to maximize the perks and benefits of one of them in most cases.
To simply put it tier one is to get you started. Tier two is for cash back cards, Tier three is for earning points and rewards, tier four for the extra benefits, and tier five is for exclusivity and showing off. Tier five cards are really a flex tbh, especially the ones abroad.
So that as is the credit card tier system and hopefully it helps you out on improving your credit score and maximizing your travel benefits so you can TRAVEL MORE!
Good luck on conquering the credit card game and don't forget to follow us on Facebook and Instagram!
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