Philippines Expat credit cards, US or local?

[Happyhorn52]

In regard to credit cards living in Philippines is their an advantage in replacing US credit cards like Chase (earns airline miles) with a Philippines credit card, if you are only going to use them for largish purchases.

Edited February 26, 2017 by Old55
Split question to new topic edit to question clarify

[Mike J]

The rate for most Philippine credit cards is 3.5% per month.  This equates to 51% per year.  If required I think I will continue to use my US credit card(s), thanks anyway. 

[Happyhorn52]

That was easy!

[Dave Hounddriver]

There used to be an advantage.  Years ago there were stores that accepted local credit cards but not international credit cards.  Those stores are now few and far between.  There is an advantage in ease of use.  Foreign card transactions are often delayed or denied because you have to call the issuing company if they suspect fraud and using your card in Philippines is an automatic red flag for most companies.

There are some local cards that have promos.  BDO and Robinsons Appliances often offer 6 months no interest if you use their credit card.  They set it up to charge your card in 6 equal payments with no interest if you pay each month by the due date.  That is HUGE for low budget foreigners if you can get a card like that.

But for me, I use cash whenever and wherever possible.  Cash is still king here.

[earthdome]

I used credit cards in the Philippines more than I thought I would. I would stick with US issued cards. Have 2-3 cards from different financial institutions which you pay in full each month if you use them. Make sure the banks know you are traveling internationally and what country's you will be in so no charges will be denied. Have 2-3 cards so if one fails another might work. Don't carry all three with you, keep one for emergency's in your apartment/house. Research the financial institutions to find ones that do not charge extra fees for international charges and provide good FX rates. I use Capital One which meets both of those requirements plus gives 1.5% cash back on all purchases. The credit cards are also your emergency fund in case you have a medical emergency and need to provide immediate payment to the hospital. Hospitals in the Philippines will not treat you without payment. In addition get a Google Voice or Magic Jack US phone number so you can make calls from a US phone number using VOIP from your smart phone in case you need to call the banks.

[Tukaram (Tim)]

Cash is king here, but I do have my US cards for emergency... and sometimes just to facilitate large purchases.  My preferred card has no foreign transaction fee, so no penalty for using it overseas, and it gives great points. I rarely use them here. Most often it is to pay for hotels or flights online.  I am currently in the market for a gas grill and instead of carrying cash around for days while looking I got my Barclay card out of the safe. More convenient, and if I pay it off right away there is no interest.

[intrepid]

8 hours ago, Tukaram (Tim) said:

I am currently in the market for a gas grill

S and R has one or two at our store.  Also if you have a Wilcon nearby they have about 10 models of the Charbroil brand.  Of course as we say YMMV.

[OnMyWay]

On 2/28/2017 at 7:55 AM, earthdome said:

I used credit cards in the Philippines more than I thought I would. I would stick with US issued cards. Have 2-3 cards from different financial institutions which you pay in full each month if you use them. Make sure the banks know you are traveling internationally and what country's you will be in so no charges will be denied. Have 2-3 cards so if one fails another might work. Don't carry all three with you, keep one for emergency's in your apartment/house. Research the financial institutions to find ones that do not charge extra fees for international charges and provide good FX rates. I use Capital One which meets both of those requirements plus gives 1.5% cash back on all purchases. The credit cards are also your emergency fund in case you have a medical emergency and need to provide immediate payment to the hospital. Hospitals in the Philippines will not treat you without payment. In addition get a Google Voice or Magic Jack US phone number so you can make calls from a US phone number using VOIP from your smart phone in case you need to call the banks.

Another reason to use a U.S. credit card is that it is a free way to transfer dollars when rates are high, like now.  I also have a Cap One with no transaction fees, and their exchange rate is always very good.  I get points for purchases (it used to be air miles but changed) and I think I have enough now to pay for most of my rental car on our upcoming U.S. trip.   Also, the card will cover LDW on the rental.  Since rates are up, lately I am using it for my groceries and diesel for the car.

Also, maintaining a U.S. card will help maintain your good credit rating, if you have one.