5 Reasons You Need to Always Read Your Card's Terms and Conditions

 

Debit and credit card ownership has become increasingly common among Filipinos in recent years. As more people embrace a cashless lifestyle, these cards offer a convenient and secure way to pay for both everyday purchases and larger transactions. And with banks and digital providers continuously launching new card products that are often paired with attractive promos and easy application processes, it’s now easier than ever to get one.

But while the sign-up process may be simple, understanding how your card truly works requires more attention, starting with the terms and conditions. Many cardholders tend to skip over this section, either because it's too long or filled with unfamiliar financial terms. However, failing to review this document can lead to missed benefits or confusion about your rights and responsibilities as a cardholder.

As such, always take time to read the fine print. Doing so will help you make smarter decisions and get the most out of your card. Here are some key reasons reading your card’s terms and conditions is so essential:

1) You’ll Discover Sweet Deals and Special Perks

Many card issuers promote exciting perks such as cashback rewards, exclusive promos, and discounts at partner merchants, but one of the most sought-after benefits is a credit card with no annual fee for life. For cardholders, this means you won’t have to pay the usual yearly fee just to keep your credit card active. It’s a valuable long-term benefit that can save you thousands of pesos over time, especially if you’re planning to keep the card for several years. 

However, these perks don’t always come automatically. In some cases, the credit card no annual fee for life offer is only granted if you meet certain requirements. This includes spending a minimum amount within the first few months, applying through a promo-specific link, or maintaining good standing throughout your first year. Failing to meet these conditions may result in the standard annual fee being charged on your next billing cycle.

2) Maximize Your Rewards and Points

Another major benefit of using a credit card is the opportunity to earn points, miles, or cashback through a rewards program. However, not all rewards programs work the same way, each one comes with its own set of rules and conditions. For instance, not every purchase earns points equally. Some cards for example the Landers Cashback Everywhere Credit Card by Maya offer higher rewards for specific categories like groceries, dining, or online shopping, while others may exclude certain transactions altogether, such as cash advances or government-related services.

Additionally, some cards require you to manually activate bonus promos, redeem rewards through designated platforms, or meet a minimum spending requirement before your points are credited. There may also be expiration periods for unused points, and in some cases, your accumulated rewards could be forfeited if your account becomes delinquent or inactive.

If you thoroughly review the rewards section of your card’s terms and conditions, you’ll better understand how the program works, what types of purchases are eligible, and how to redeem your rewards without hassles. This way, you can maximize every peso you spend and ensure that your card truly works in your favor.

3) Understand the Fees, Interest Rates, and Charges

While credit cards offer flexibility, they also come with financial responsibilities. One of the most important sections to study in the terms and conditions is the list of fees and charges associated with the card. These can include annual fees, interest rates on revolving balances, late payment fees, cash advance charges, over-limit penalties, and foreign transaction fees. Knowing all these details helps you avoid unnecessary charges and manage your card more strategically. 

You might not realize that withdrawing cash from your credit card can immediately trigger a cash advance fee and interest that accrues daily. Moreover, interest rates vary between cards and even between types of transactions. Some cards may offer a low introductory rate that increases after a few months. Others may have tiered interest rates depending on your payment behavior.

4) Be Aware of Penalties and Triggers

Aside from standard fees, there are also penalties and policy triggers that could lead to additional costs or restrictions. If you miss a payment, it could result not only in a late fee but also in the loss of promotional benefits, such as 0% interest or no annual fee privileges. In addition, using your card for certain transactions, like gambling, balance transfers, or international payments, may be subject to special restrictions or require prior approval. Violating these terms, even unknowingly, can lead to card suspension or reduced credit limits.

In any case, reading your card’s terms helps you understand what actions might put you at risk for penalties or violating the card’s usage guidelines. This way, you can use your card responsibly and avoid unpleasant surprises down the line.

5) Know Your Data Privacy Rights

Whenever you sign up for a card, you provide your bank or provider with a significant amount of personal information, including your name, address, contact details, income, and employment information. It’s important to understand how this data will be used, stored, and shared, which is why reading the privacy section of your terms and conditions is so crucial.

Some card issuers in the Philippines include clauses that allow them to share your information with third-party marketing agencies or partner brands. Others may use your data to target you with promotional offers or conduct research. This may seem harmless to some, but it’s important to know that you have rights under the Data Privacy Act of 2012.

While reading the terms and conditions might not be exciting, it shows that you’re taking ownership of your financial decisions. It puts you in control of your spending, how you earn rewards, and how you avoid unnecessary charges.

In the long run, it’s the small, responsible choices like this that build better money habits. Knowing that, the next time you apply for a card, take a few minutes to read the fine print, you might be surprised at how much power and peace of mind it gives you.