UnionBank Credit Card Fees, Charges, and Interest Rates Explained
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UnionBank Credit Card Fees, Charges, and Interest Rates Explained
A Complete Guide for First-Time Credit Card Users in the Philippines
Getting your first UnionBank credit card is exciting — it opens the door to online shopping, travel bookings, and emergency flexibility. But before you start swiping, it’s important to understand how credit card fees, charges, and interest rates actually work.
Many first-time cardholders are surprised by their first bill because they didn’t fully understand the fees involved. This guide will help you confidently manage your UnionBank credit card by explaining each fee in simple terms — and how to avoid paying more than you need to.
🧭 TL;DR (Quick Summary)
Annual Fees: ₱1,500–₱3,000 depending on card type (waived for some during the first year).
Interest Rate: Around 3% per month (36% per year) if you don’t pay your balance in full.
Late Payment Fee: ₱1,000 or the unpaid minimum amount, whichever is lower.
Cash Advance Fee: 6% of the withdrawn amount or ₱500 minimum.
Foreign Transaction Fee: 3.5% of the converted amount.
Tip: Always pay in full and on time to avoid interest and penalty charges.
💡 Why You Need to Understand Credit Card Fees
If you’re a first-time card user, think of your credit card as a short-term loan from the bank. Every time you use it, you’re borrowing money — and if you don’t repay it on time, interest and charges start to add up.
Understanding these fees helps you:
Avoid unnecessary costs
Keep your credit score healthy
Use your card wisely for rewards and promos
💬 Example: Kung nag-shopping ka ng ₱10,000 at nagbayad ka lang ng ₱1,000 sa due date, the remaining ₱9,000 will be charged with interest next month.
📋 Main UnionBank Credit Card Fees and Charges
Let’s break down the most common fees you’ll see on your UnionBank credit card statement — and what each one means.
🏦 1. Annual Fee
This is the yearly membership fee for using your credit card. It covers the convenience, rewards, and services that come with it.
Card Type
Annual Fee (Primary)
Supplementary Card
UnionBank Classic
₱1,500
₱750
UnionBank Gold
₱2,500
₱1,250
UnionBank Platinum
₱3,000
₱1,500
UnionBank Rewards or Co-branded Cards
₱2,500–₱3,000
₱1,250–₱1,500
💡 Tip: Many UnionBank cards offer first-year annual fee waivers — especially for online applicants or promo periods. Always check if your card is eligible before applying.
💰 2. Monthly Interest Rate (Finance Charge)
The monthly interest rate is what you pay if you don’t settle your full balance by the due date.
Standard rate: Around 3% per month
Annualized: Roughly 36% per year
📘 Example: If you owe ₱10,000 and only pay ₱1,000, the remaining ₱9,000 will earn 3% interest = ₱270 next month.
That means the longer you carry a balance, the more expensive your purchases become.
⚡ 3. Late Payment Fee
If you fail to pay at least the minimum amount due by your due date, UnionBank charges a late payment fee of:
₱1,000 or the unpaid minimum amount, whichever is lower.
Aside from the penalty, late payments can also hurt your credit score — making it harder to get loans in the future.
💸 4. Cash Advance Fee
A cash advance lets you withdraw cash using your credit card — but it comes with high costs.
Fee: 6% of the amount or ₱500 (whichever is higher)
Interest: Starts immediately on the withdrawal date (no grace period)
⚠️ Example: You withdraw ₱10,000 → ₱600 fee + immediate 3% monthly interest. Within a month, you could owe ₱10,900+ total if unpaid.
💡 Tip: Only use cash advance for real emergencies. It’s one of the most expensive credit card features.
🌍 5. Foreign Transaction Fee
When you use your UnionBank credit card for online purchases in USD or while traveling abroad, your transaction is converted to pesos.
Fee: Around 3.5% of the converted amount (includes Mastercard/Visa conversion + UnionBank service fee)
Example: A $100 purchase ≈ ₱5,600 (if ₱56 = $1). Add 3.5% = ₱196 extra fee.
📦 6. Overlimit Fee
If you spend beyond your credit limit, UnionBank may charge an overlimit fee (around ₱500). To avoid this, always monitor your available credit via the UnionBank mobile app or monthly statement.
📑 7. Returned Check or Payment Fee
If your payment bounces or fails due to insufficient funds, UnionBank charges around ₱1,000 as a returned payment fee.
📆 Grace Period and Billing Cycle Explained
If you pay your total balance in full and on time, UnionBank gives you a grace period of up to 45 days — meaning no interest will be charged.
Your billing cycle usually lasts 30 days, followed by 15 days before your payment due date.
🧠 In short:
Pay in full → 0% interest
Pay partial → 3% interest
Pay late → interest + ₱1,000 penalty
🧮 Use This Tool: Credit Card Cost Calculator
Before you start using your UnionBank credit card, it’s smart to plan ahead. You can use the Credit Card Cost Calculator to estimate:
Monthly payments if you don’t pay in full
Total interest charges over time
How much extra you’ll pay for late payments or partial payments
💡 Example: Enter ₱10,000 as your balance, 3% monthly interest, and ₱1,000 minimum payment — and the calculator will show you how much interest grows each month if you only pay the minimum.
This helps first-time cardholders visualize the real cost of borrowing and make better financial decisions.
⚙️ How UnionBank Calculates Your Credit Card Interest
UnionBank uses a daily interest computation method on unpaid balances:
Interest = (Outstanding Balance × Daily Rate) × Number of Days
Where the daily rate = 3% ÷ 30 = 0.1% per day.
Example: ₱10,000 balance unpaid for 30 days = ₱10,000 × 0.1% × 30 = ₱300 interest.
That’s why it’s crucial to pay early or in full — interest accumulates daily, not monthly.
🎯 Pro Tips to Avoid High Credit Card Fees
Always pay on or before the due date. Even one late payment can cause interest and penalty charges.
Pay the full amount due, not just the minimum. Paying in full avoids any interest altogether.
Monitor your spending limit. Use the UnionBank mobile app to track available credit and avoid overlimit fees.
Avoid cash advances unless urgent. The high fees and immediate interest make them costly.
Use promos wisely. UnionBank often offers 0% installment or cashback — great ways to maximize value without paying extra.
🧠 Real-Life Example
Let’s say you spent ₱20,000 using your UnionBank credit card.
You only paid ₱2,000 (minimum due).
Remaining balance: ₱18,000
Monthly interest (3%): ₱540
Next month’s total: ₱18,540
If you keep paying the minimum, your ₱20,000 could take more than a year to pay off — and you’ll spend thousands more in interest.
That’s why understanding how charges work helps you stay in control of your finances.
🌟 Benefits of Managing Your Card Wisely
When you use your UnionBank credit card responsibly:
You enjoy 0% installment promos and rewards points.
You build a strong credit history, which helps for future loans.
You avoid stress from unexpected interest and penalty fees.
It’s not about avoiding credit — it’s about using credit smartly.
💬 FAQs About UnionBank Credit Card Fees and Interest
1. What is the monthly interest rate for UnionBank credit cards?
UnionBank charges around 3% per month on unpaid balances (about 36% annually).
2. How can I avoid paying interest?
Pay your full balance on or before the due date. This gives you a grace period with 0% interest.
3. Does UnionBank waive the annual fee?
Yes, some cards have first-year fee waivers or promos. You can also request for a waiver after a year if you’re a good payer.
4. What happens if I pay late?
You’ll be charged a ₱1,000 late fee plus interest on your remaining balance.
Credit cards are powerful financial tools — but only when used wisely. By understanding the fees, charges, and interest rates of your UnionBank credit card, you can enjoy the benefits without falling into debt.
So before swiping or shopping online, take a moment to plan your payments and estimate your costs using the Credit Card Cost Calculator.
A little awareness today can save you thousands of pesos in unnecessary interest tomorrow.
