Is Credit Card Point Collection Worth it in the Philippines?

Only a handful of the Philippine population uses credit cards. A large portion of those who do have one use them as another means of paying for their purchases. These people don’t know how much they’re missing all because they don’t use the reward points that they accumulate with their credit cards. These points can turn into several things. They can be redeemed for appliances, gadgets, even hotel stays, and airline tickets!

The problem, however, is the usual number of points needed to redeem these items. Most people disregard big point redemptions because they believe there’s no feasible way to earn that many points, so they just settle for smaller point redemptions that would usually be gift certificates and fee waivers.

However, when you discover the value for points that you get with these big redemptions, you’ll realize just how much you can get from collecting points in the long run.

Have you started collecting credit card points? Read on to learn more about the real value of credit card points!

Are Credit Card Points Useful?

The first thing that everyone needs to understand is that credit card points are a kind of currency exclusive to credit cards. You can use it to buy different things depending on the reward catalog of particular banks.

Keep in mind, however, that not all types of credit cards enable point collection. In most cases, only reward credit cards let cardholders earn points every time they use their credit cards to purchase something.

Some credit cards let you earn more reward points for specific purchases, and some credit cards let you earn airline miles.

At the end of the day, the usefulness of credit card points will depend on whether or not you can use them for something you want, whether it’s gift certificates, fee waivers, airline miles, or other items.

Be it collecting airline miles or credit card points, the choice is up to you.

What is the value of credit card points?

Yes. You can get reward points for free when you purchase things with your credit card. But their point to peso conversion is not as accurate when you use them to redeem certain items. When a card says it earns 1 point for every PHP20.00, that doesn’t mean the redemption value is also PHP20.00

In fact, it’s quite smaller than that.

For example, a PHP1,000.00 Gift Certificate for Max’s Restaurant requires 23,340 points from Metrobank. Here, the valuation or 1 point turns out to be a measly 5 centavos. Keep in mind, as well, that a PHP1,000.00 gift certificate costs different amounts of points depending on where it’ll be used.

When you convert credit card points into airline miles, the value also changes.

e.g. A business class flight from Singapore to Manila with Singapore Airlines costs S$1,615.80 or PHP58,770.00. To redeem the same flight, you need 21,500 Krisflyer Miles. Metrobank only allows airline miles redemption in increments of 10,000 points, so you have to redeem 30,000 Krisflyer Miles which is 75,000 Metrobank Points. In this computation, the value of 1 Metrobank Point is equal to 78 centavos, but that’s because you have 850 extra KrisFlyer miles.

If you consider that 21,500 Krisflyer Miles requires only 53,750 Metrobank Points, the real value of 1 Metrobank point is around PHP1.10. that’s 202% more than the 5-centavo value that you get when you use the points for a gift certificate!

That being said, point valuation can lead to a very subjective discussion. Our valuation doesn’t necessarily coincide with how you value your points. it depends on what you want to use your credit card points for.

The value of your points depends solely on you. If you enjoy the gift certificates and fee waivers, then they’re worth more to you. For the Pointsboys and most AV geeks out there, airline miles are where we find the most value for our points.

What’s the Catch?

We’ll be honest. Earning credit card points comes at a price—the cost of what you buy using your credit card. Those who are knowledgeable about credit card points already know that you only earn them through specific ratios. For example, the BDO Titanium Masatercard lets you earn 1 point for every PHP40 spent. When you buy something worth PHP4,000.00, you’ll earn 100 points.

At first, you’ll find this rate of accumulation is really slow. But when you always use your credit cards for every purchase, you’ll find your points growing in no time. The hassle here is the requirement of always using your credit card.

That means you must always be careful, pay your dues on time, be strict with your budget, and keep track of your expenses.

Another thing worth noting is that point accumulation will take a long time. Using the example above, in order to earn 75,000 Metrobank points, you need to spend at least PHP1,500,000.00. The good news is that you don’t need to spend that amount immediately. Depending on your way of living, it might take you two to three years to rack up, but it ‘s still possible.

Point collection is not for the impatient. It takes a long time to earn enough points for those big ticket redemptions. But once you get the hang of it, you’ll realize that in doing so, you retroactively save thousands in whatever you use your credit card points or airline miles for!

Final Statement

Point collection is a hobby that can lead to thousands of pesos of savings in the long run. As we’ve mentioned, it’s not something that a person that has problems with their financial situation should get into.. Point collection is a passive hobby that you actively keep in mind.

It can be difficult to maintain, but once you accumulate enough, not only will you be able to get multiple gift certificates, get a free gadget, or waive your credit card fees. You might also find yourself flying around the world for free!

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