THE CREDIT CARD Association of the Philippines (CCAP) is launching an awareness campaign simplifying credit card terminologies to help improve financial literacy.
The campaign is meant to “bridge the gap between regulatory language and everyday understanding,” CCAP said in a statement on Monday.
“This initiative aims to ensure that credit cardholders can easily grasp the essential information, promoting better financial decision-making,” it added.
CCAP is an organization that aims to mediate between the credit card industry, merchants, and consumers. It has 16 member institutions.
The group will share the simplified credit card terminologies through various formats such as comics and videos across social media platforms, including Facebook, Instagram, TikTok, and YouTube.
Some of the credit card terms often misunderstood by consumers cited by CCAP are payment due date, total and minimum amount due, late penalties, interest charges, credit limit, billing cycle or cut-off date, and card verification value or CVV.
“By fully understanding the credit card terminologies, consumers can reap the full benefits of their credit card, such as using it interest-free by paying in full on or before the due date or maximizing the credit float by making large purchases just after the billing cutoff date to enjoy up to 51 days of credit without interest, thereby managing their cashflows more effectively,” CCAP Executive Director Alex G. Ilagan said in a statement on Monday.
This campaign forms part of CCAP’s advocacy to push for responsible credit and enhance credit card literacy in the country, it said.
The group’s other initiatives include appearances on public service radio and TV programs to discuss credit card issues, releasing educational materials via print and social media, conducting seminars at educational institutions, and hosting webinars for private and public sector employees, and participation in international conferences, among others.
Credit card spending increased by 29% year on year to P853 billion in the first half of 2023, according to latest CCAP data.
The banking system’s credit card receivables increased by 30.1% year on year to P722.6 billion as of end-December 2023, central bank data showed. — AMCS