Managing Your Credit Card Payments

When you use a credit card, it’s like having a loan you can use up to a certain limit each month. The lender will ask for a minimum payment — usually between 3% and 10% of your total bill. 

You can pay this at the bank, in stores, through ATMs, with online banking, by setting up an automatic payment or using e-wallet apps. 

Paying Back Your Credit Card

Understanding how to manage your credit card payments helps you maintain your financial health. Here are some key points to keep in mind:

• You make your payments on time
  You should do a great job in making all of your payments on time. The purpose of a credit score is to help lenders predict whether or not you will miss payments in the future, so keeping your record clean is a very positive factor.
  
  
• You should not max out your credit limits
  Credit cards are considered "maxed-out" when you have spent 90% or more of the credit limit. Lenders view you as someone who uses their credit responsibly and spends only what they can afford.
  
  
• You should build a strong relationship with lenders
  Lenders recognize that with higher credit limits comes increased responsibility, and that you have managed to build strong relationships with other lenders. Your relatively high credit limits signal to lenders that you are a trustworthy candidate for new lines of credit.
  
  
• You should not spend beyond your means
  You do not apply for a lot of new accounts. Having a lot of inquiries on your credit report worries lenders, because it is a sign that you may use credit and loans to supplement your income and might be spending beyond your means.
  
  Even if you can only afford the minimum, you're still doing okay, but try to pay extra whenever you can. This lowers your balance and helps you develop good credit habits.

What if I can’t make my credit card payments?

If you fall behind, speak to your lender and ask for help. They will often try to help you pay off your debt on easier terms or more slowly.

What if I get harassed?

The Bangko Sentral ng Pilipinas (BSP) has rules to prevent unfair debt collection practices. If you encounter any, keep records and report them to your bank. 

Important note

The guidance given here is based on information that was correct when published and is meant for learning only. It’s not legal or financial advice. For advice that fits your specific situation, talk to a professional advisor. Always look for the most recent information and rules on official websites.