Updated Credit Card Rates, Cap and Fees in the Philippines 2020 - 2021 by BSP

Heads up to all credit cardholders. Here’s an early Christmas gift for you.

Banko Sentral ng Pilipinas (BSP) caps the annual interest rate of credit cards at 24%. That’s right ― credit card issuers will only charge you a monthly interest rate of 2% effective November 3, 2020.

BSP will review this circular every six months, ensuring that banks will not exceed the imposed interest rate on all credit card transactions to ease consumers’ financial burdens.

Whether you’re planning to apply for a new credit card or you’re an existing cardholder, check out the updated credit card rates and fees below.

Overview of interest rates, cap, and fees

BSP’s circular also sets a cap on credit card installment loans with a monthly add-on rate of up to 1%, while cash advance fees are set at a maximum of P200 per transaction.

What’s the 2% credit card interest rate per month?

Previously, credit card issuers charged an average 42% interest rate per annum or 3.5% per month on unpaid outstanding balances.

Based on our comparison of the lowest credit card rates before this circular, the lowest rate was 1.99% of Eastwest Priority Visa Lane. As of this writing, BSP sets the rate at 2% per month (24% per annum).

What’s the 1% credit card installment interest rate per month?

For credit card installment plans, balance transfer, and conversion, banks can charge up to 1% monthly add-on rate.

Any existing installment plans and transactions availed before the effective date are subject to the old interest rate.

What’s the cash advance fee?

For withdrawals from your credit cards, banks will have a flat fee of P200 per transaction. Previously, the average fee is a 3% charge or P500, or whichever is higher.

Bank of Commerce credit card rates and fees

Bank of Commerce Credit Card Fees	New Rate
Monthly interest rate	2%
Balance Transfer, Convert to Installment, Balance Convert, Back to School, Cash Installment	1%
Cash advance fee	P200 per transaction

Source: Bank of Commerce Credit Card Rates

The 1% monthly add-on rate for installment plans applies to new availments from November 3, 2020.

Thinking of applying for a new credit card? Check our review below:

Best Bank of Commerce Credit Cards Philippines Review (2019)

BPI credit card rates and fees

Bank of the Philippine Islands Credit Card Fees	New Rate
Monthly interest rate	2%
Cash advance monthly finance charge	2%
Special Installment Plan (SIP) Monthly Add-on and SIP Loan variants	1%
Cash advance fee	P200 per transaction

Source: BPI Cards

The monthly interest rate and cash advance monthly finance charge apply to all BPI and BPI Family Savings Bank credit cards.

You may also check our reviews on BPI credit cards:

BDO credit card rates and fees

BDO Credit Card Fees	New Rate
Monthly interest rate	2%
EasyPay Regular Installment, EasyPay Balance Transfer, EasyPay Cash Out, EasyPay Convert, Balance Convert, Cash-It-Easy or BDO Installment Card	1%
Cash advance fee	P200 per transaction

Source: BDO

The interest rates and fees apply to all BDO credit cards and BDO-issued American Express cards only. With the cash advance feature, you can withdraw up to 30% of your credit limit.

You may also compare BDO credit cards:

China Bank credit card rates and fees

BDO Credit Card Fees	New Rate
Monthly interest rate	2%
Transaction Conversion and Balance Transfer	1%
Cash advance fee	P200 per transaction

Source: China Bank

For more information about China Bank credit cards, check our reviews below:

Citibank credit card rates and fees

Citibank Credit Card Fees	New Rate	Effective Date
Citi Speed Cash transaction	P900 per approved transaction	October 30, 2020
Citi FlexiBill transaction	P750 per approved transaction	October 30, 2020
Citi Balance Transfer transaction	P900 per approved transaction	October 30, 2020
Citi PayLite after purchase transaction	P250 per approved transaction	October 30, 2020
Monthly interest rate	2%	November 3, 2020
Cash advance monthly interest rate	2.04% (P200 flat fee is already included)	November 3, 2020
Late payment fee (except Citi Simplicity + Card)	P 1,500 or the unpaid minimum amount due, whichever is lower	January 8, 2021
Overlimit fee (except Citi Simplicity + Card)	P1,500 the highest overlimit amount during the billing period, whichever is lower	January 8, 2021

Source: Citibank

The cash advance monthly effective rate is 2.04%, inclusive of the P200 service charge.

Citibank charges P850 for late payment fees as of this writing. But starting January 8, 2021, the new rate is P1,500 or the unpaid minimum amount, whichever is lower.

Meanwhile, the overlimit fee will also take effect at P1,500 or the highest overlimit amount during the billing period, whichever is lower.

Late charges and overlimit fee don’t apply to Citi Simplicity+ Card.

If you plan to apply for a Citibank card, check out our reviews:

HSBC credit card rates and fees

HSBC Credit Card Fees	New Rate
Monthly interest rate	2%
Cash advance monthly interest rate	2%
HSBC Credit Card Balance Transfer Plans, HSBC Cash Installment Plans and HSBC Card Balance Conversion Plans	1%
Cash advance fee	2.08% (inclusive of P200 flat fee)

Source: HSBC

The 2% monthly interest rate applies to all your retail and cash advance transactions. Keep in mind that if you have unpaid outstanding balances before November 3, 2020, the old interest rate assigned to your card will apply.

Want to know more about HSBC credit cards? Here are our reviews:

Landbank credit card rates and fees

Landbank Credit Card Fees	New Rate
Monthly interest rate	2%
Late payment fee	2.25%
Cash advance fee	5% of amount withdrawn but not exceeding P200
Easy Pay/ Equal Monthly Installment (EMI)	1%

Source: Landbank

For cash advances, you can withdraw up to 30% of your credit limit.

Metrobank credit card rates and fees

Metrobank Credit Card Fees	New Rate
Monthly interest rate	2%
Metrobank Balance Transfer, Cash2Go and Balance Conversion	1% add-on rate
Cash advance fee	P200

Source: Metrobank

The 1% monthly add-on rate applies to installments and conversions made from November 3, 2020 onwards. For existing installments made prior to the effective date, the old rates apply.

Thinking of getting a Metrobank credit card? Check out our reviews:

Maybank credit card rates and fees

Maybank Credit Card Fees	New Rate
Monthly interest rate	2%
Cash advance fee	P200

Source: Maybank

Check out Moneysmart reviews on Maybank credit cards:

Best Maybank Credit Cards in the Philippines – Credit Card Reviews 2019

Security Bank credit card rates and fees

Security Bank Credit Card Fees	New Rate	Effective Date
Monthly interest rate	2%	November 3, 2020
Cash advance fee	P200 per transaction for local transactions	November 3, 2020
Balance Transfer, Ready Cash, Balance Convert, Convert to ChargeLight and SimplyPay)	1% monthly add-on rate	November 3, 2020
Minimum Amount Due	P500 or 3% of total amount due whichever is higher	January 25, 2021
Late payment fee	1.5% of total amount due	January 25, 2021
Quasi-cash fee	2.5% of the transacted amount	January 25, 2021
ChargeLight Plan Pre-Termination Fee	5% of unbilled portion of the principal amount	February, 1, 2021

Source: Security Bank

The 1% monthly add-on rate applies to transactions from November 3, 2020 onwards. Meanwhile for cash advance, the processing fee per transaction is P200 and quasi-cash fee is applicable to gaming/gambling transactions.

If you plan to apply for a Security Bank credit card, these reviews are helpful:

Best Security Bank Credit Cards in the Philippines Review (2019)

Are you happy with the new credit card interest rates? We hope you’ll be able to better manage your expenses and use your card responsibly this pandemic. Let us know what you think in the comments below.

Tags: credit cards, discounts, lifestyle