Practical lessons on turning
credit into a tool for financial well-being
Despite wider access to
financial services, plenty of Filipinos still struggle with financial literacy
and financial resilience. The 2025 National Strategy for Financial Inclusion
(NSFI) Annual Report puts some real numbers on that gap: while 85% of Filipino
households now have financial accounts, only 74% show basic financial literacy,
and just 30% have enough savings to actually withstand a financial shock.
Access alone clearly isn't
enough. Filipinos also need practical financial education that helps them use
financial products with actual confidence, not just access to them.
EastWest is addressing that gap
through EastWest WAIS (Wise Approach to Income and Savings), its financial
empowerment platform under the Bank's sustainability agenda. Built to turn
financial education into practical, everyday guidance, WAIS helps employees,
educators, and communities build stronger money habits through sessions on
saving, budgeting, responsible borrowing, and credit management.
One recent session, Credit Card
101, focused specifically on helping participants understand how credit cards
actually work — and how they can function as tools for building financial
wellness rather than sources of financial stress.
“Credit cards are a very
powerful tool,” said Oscar Navidad, Head of Credit Card Direct Sales at
EastWest. “But it depends on how we use it. We have a choice in using it for
the better or for the worse.”
Pay in Full Whenever Possible
One of the session's core
takeaways was understanding the real cost of carrying an unpaid balance. Credit
cards offer real convenience and flexibility, but interest charges can pile up
fast when balances aren't paid in full.
“The revolving interest will
only kick in if we have unpaid balances,” Navidad explained. “If you pay your
balance in full on or before the due date, there is no interest.”
Don't Treat Your Credit Limit as Extra Income
Navidad also flagged the
importance of managing credit utilization — the percentage of available credit
actually being used. As a general rule, keeping utilization below 30% helps
consumers maintain healthier spending habits and build a stronger credit profile
over time.
Let Rewards Follow Your Spending, Not the Other Way Around
Cashback, discounts, and
rewards points can add real value, but they shouldn't become the reason you're
spending in the first place. “Don't chase the rewards. When the rewards come to
you because that's your lifestyle, use the rewards well,” Navidad advised.
The better approach: pick a
credit card that matches your regular spending habits and actual financial
needs, and let any rewards be a bonus rather than the point.
Build a Credit Record That Works for You
Responsible card use also helps
build a positive credit history — something that matters a lot more once you're
applying for loans down the line.
“It's important that you're
able to prudently use the credit line extended to you,” Navidad said. “It will
not only affect your credit card but all your other loans as well.”
The session reinforced a fairly
simple message: financial wellness isn't about avoiding credit altogether —
it's about knowing how to actually use it well.
Through WAIS, EastWest brings
this kind of guidance closer to the people and communities it serves,
supporting better everyday financial decisions and longer-term financial
well-being.
“True financial well-being
comes from understanding how to use financial tools wisely. WAIS teaches more
than saving money — it also forms habits that build wealth and protect the
wealth and assets you acquired in your financial wellness journey, that ultimately
leads to responsible spending, which in turn leads to a sustainable lifestyle,
i.e. mindful consumption, less resource-intensive,” said Dave Devilles,
EastWest Head of Sustainability.
To learn more about EastWest's sustainability initiatives
and financial literacy programs, visit eastwestbanker.com/sustainability.
About East West Banking Corporation
East West Banking Corporation (EastWest) is a Filipino-owned universal bank and a subsidiary of Filinvest Development Corporation (FDC), one of the country's leading conglomerates with interests in real estate, banking, hospitality and tourism, infrastructure, power generation, and sugar. EastWest is not affiliated with any foreign financial institution that may bear the same name. For more information, visit www.eastwestbanker.com.
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