credit card??

[metropolitan]

I'm not saying that it's wise to give out a credit card to every student out there. Syempre it's best pa din to have a secure and stable job before applying for credit, like you suggested.

But the argument here is not about "with cc vs. no cc", it's about "supplementary cc vs. secured cc".

Ang sinasabi ko, in my opinion, if a student would want or need a credit card it might be better to let him get a secured credit card using his own "ipon" from his allowance as collateral instead of giving him a supplementary card from his parent (which you suggested). That way, somehow he might be more responsible in using the card because he knows that the bank will forfeit his "ipon" if he became delinquent in paying his bills. If he still ended up being irresponsible and he fell in credit card debt (which he technically wouldn't anyway because the bank will simply forfeit his deposit), then that's the time na pwedeng pumasok sa eksena si rich daddy para bayaran ang kanyang bills (which he would anyway kung binigyan nya ng supplementary ang anak nya) at hopefully may matutunan na sya. Kesa binigyan sya ng supplementary card ni daddy tapos si daddy ang magbabayad ng lahat ng purchase nya. He wouldn't take any responsibility for it because he knows it's his dad's bill. Tingin ko, mas lalong wala syang matututunan. Again, it's just my personal opinion.

Also, it seems to me that you have this assumption that all credit cardholders are revolvers. It's true that the finance charges of credit cards in the Philippines are very high, maybe even the highest in the world. But that was never a problem for me because since high school, my mom and dad taught me that if someday I would get a credit card I should always pay my bills in full and if I know I couldn't, better not get a credit card na lang. Hanggang ngayon dala ko yung advice na yon and I believe them because my parents always pay their cc bills in full, kahit 300k pa yan. Kaya nga yung dalawang credit cards ni papa, waived na ang annual fee for life. For that he inspires me (in responsible use of credit at least). And no my dad's not rich, he's just smart.

Well I guess I have been speaking for myself. I guess most of us do.

Anyway, about the research, yes I will try to look for it kaya lang mukhang mahihirapan ako kasi sa internet ko lang yan nabasa, nung time na first time ako magkaroon ng principal cc at nagbabasa-basa ako ng articles about responsible use of credit. But you are right, I think that research was done by banks in the US, so it might not be applicable to our country wherein ang mga tao ay iresponsable sa pag-hiram ng pera (pero di ba mas marami yata ang nalulubog sa credit card debt sa US?)

For a student whose only income is an allowance from parents whatever the the credit card is (secured or supplementary) it is always the parents (rich, middle class or poor) who will foot the bill. Saan pa kaya nila kukunin ang perang pambayad?

For spending money there are better alternatives like Visa/Mastercard debit cards (BDO, Smart Money, EON) and ATM debit cards (EPS, Paylink, Bancnet) for students. If a student wants to buy a new phone or something from the internet he/she just saves part of the allowance in a bank account and when the money has been raised buy the item. If one can save up to open a secured credit card why would it be more difficult to just save money in order to buy stuff without using credit? If an item needs to be bough as soon as possible and is absolutely necessary for schoolwork obviously parents will do whatever they can so that their children can buy/have them.

Its good to know that you were trained to pay credit card balances in full. Last year, 2007, credit card receivables in the Philippines have amounted to P116.1 billion up by 16.5%, 14.2% (about P16.48 billion) is past due and there are more than 5 million cards in circulation.
Sources:
(1) http://business.inquirer.net/money/t...p-by-165-in-07
(2) http://www.bsp.gov.ph/banking/pbs_archives/2007/10.htm
(3) http://blogs.inquirer.net/moneysmart...oans/#more-643

[onyxguapo]

If a student was given a supplementary card, in most cases (myself included) the parent would be paying the card's bill "outside" of the student's allowance. If a student was allowed to have his own, principal secured credit, he would be forced to save up his allowance to pay for his own bills. The student would learn how to budget at least his allowance and that makes the difference. Well at least that's the ideal setup.

Again, I am talking about the advantages of secured card over supplementary card and I wouldn't argue whether or not cash or debit cards are better than cc for students.

Thanks for your insights by the way. I'm learning.

[metropolitan]

If a student was given a supplementary card, in most cases (myself included) the parent would be paying the card's bill "outside" of the student's allowance. If a student was allowed to have his own, principal secured credit, he would be forced to save up his allowance to pay for his own bills. The student would learn how to budget at least his allowance and that makes the difference. Well at least that's the ideal setup.

Again, I am talking about the advantages of secured card over supplementary card and I wouldn't argue whether or not cash or debit cards are better than cc for students.

Thanks for your insights by the way. I'm learning.

There are no advantages for a student getting a secured card and/or supplementary card because the parents ends up paying directly and indirectly.

Credit cards are not a learning tool for personal finance it is just a temptation to spend.

[bankerII]

It's a learning tool on how to spend money you have not earned yet.

[onyxguapo]

There are no advantages for a student getting a secured card and/or supplementary card because the parents ends up paying directly and indirectly.

Credit cards are not a learning tool for personal finance it is just a temptation to spend.

Mistakes are great learning tools. If someone does not pay his bill on time, a late fee will be a powerful message. One would probably realize the consequences of spending too much, making a late payment, or being irresponsible with a credit card. Hopefully, one will not repeat again.

A secured credit card with a 5k to 10k credit line would probably encourage a student to keep his spending in line, without the risk of putting him in too much debt. If he sees that he has been paying too much for interest and late fees, he may never let it happen again. Although he would learn it the hard way, he would still learn something and he would learn it early.

Of course it is still up to the parents if they would let their children learn personal finance by letting them pay their own credit card bills indirectly using a part of their allowance, and not paying for them directly outside their allowance. There is a difference.

[onyxguapo]

It's a learning tool on how to spend money you have not earned yet.

I don't think that's applicable to secured credit.

[bankerII]

we should distinguish the difference between a credit facility and second way out options.having said that, I still respect your position on the matter.

[tidus1203]

On the contrary the bank probably hopes you always pay late so they can rack up on late fees

[chappy86]

how about PNB Astra Secured Kredit (ASK) Card?
any feedbacks?

thanks

Link
http://www.pnb.com.ph/content/view/54/64/

[illumina]

Parents who refuse to give their children supplementary cards may have a good reason if they don't want to.

What can a student possibly want to buy that he/she needs to have a credit card? A Zara top? A Kate Spade bag? Lunch at Spiral at the Sofitel? Venti Frappuccino everyday? Is their allowance or baon not enough that they have to borrow using a credit card?

I think it is just right for parents to know what their dependent children are buying most especially if the money came from them.

Iba pa rin ang kahalagahan ng pinagiipunan at pinagiisipan ang mga gustong bilhin o paggastusan. It is a good training for deferred/delayed gratification.

My folks gave me a supplementary card when I was 14 when BPI had a promo; I didn't even ask for one. It was more for errands and emergencies; my dad didn't even put a cap on my card. My allowance was very low, so I had the clearance to use the CC on groceries. I only used it for personal indulgences rarely, just a Venti Frappuccino at most, hehe. My siblings are complaining why they're 18 now but don't have supplementary cards of their own.

Never bothered to apply for my own credit card, but I just got contacted that I'm getting a preapproved BPI Mastercard for keeping a savings account with them. I'll probably have it canceled after a year.

[gentle_touchee]

The thing with secured credit cards is, it is a last resort for those who cannot get a regular credit card because they either have a bad credit history or no credit history. Kung baga, parang tine-test ka dyan ng bangko kung marunong ka mag-handle ng cc, kung marunong ka magbayad, at kung mapagkakatiwalaan ka na pahiramin ng pera. Ang style dyan, get a secured credit card, use it for small purchases, and pay your balance in full each month. After one year of timely payments, who would have been able to build a good credit history and by that time, pwede ka na mag-request sa bangko na i-release yung deposit mo and you still get to keep the card as a regular credit card. Mas madali ka na rin maa-approve sa ibang credit card companies since may credit history ka na.

Consider secured credit cards as a stepping stone to financial maturity.

secured credit card is it then. BUT what if you have used a secured credit card then ok naman ang stabding mo for a year then you mean after a year i can now apply for a regular credit card without the requirements like itr, payslip,etc....what if i am still a student pa rin at that time or a bum with money,lol.;.

[gentle_touchee]

hmm ewan ko lang kung lenient yung citibank at hsbc. kasi ilang beses din ako nadecline sa 2 na to. yung unionbank na-approve naman yung application ko dun dati try mo unionbank po. yung equitable jcb mabilis ako na-approve dati pero syempre wala na yun.

kung gusto mo magka-credit history, try mo magkaron ng secured card sa hsbc. for 12k na deposit, bibigyan ka nila ng 10k na credit limit. depende yun sa deposit mo yung magiging credit limit mo. babawasan lang nila yung deposit mo pag 2-3 months ka na hindi nagbabayad ng credit card mo.

what is this HSBC Product called. i plan on applying for that secured credit card from hsbc..what are the requirements? i plan on depositing 30k so you mean mga 28k credit limit ko?matagal ba ang processing?thanks

[onyxguapo]

secured credit card is it then. BUT what if you have used a secured credit card then ok naman ang stabding mo for a year then you mean after a year i can now apply for a regular credit card without the requirements like itr, payslip,etc....what if i am still a student pa rin at that time or a bum with money,lol.;.

Most banks would still require you to submit financial documents like ITR, etc. Your credit history from a secured credit card would only make the processing of your application for a regular credit card faster and greatly increase your chances of being approved. Here's a tip, if you use your secured card very often, never delay in paying your bills and at the same time you have a huge savings account with your bank you would most probably qualify for a pre-approved, unsecured regular credit card. Some of the banks that usually send pre-approved credit cards to their depositors are BPI and BDO.

But yes, there are banks that won't require any financial document as long as you have been a credit cardholder for a year with good credit standing. Some of these banks are EastWest Bank and RCBC (Bankard). However, I believe you should at least be 21 years old, have at least a part-time job or any source of income, a landline phone and a TIN (Tax Identification Number).

what is this HSBC Product called. i plan on applying for that secured credit card from hsbc..what are the requirements? i plan on depositing 30k so you mean mga 28k credit limit ko?matagal ba ang processing?thanks

It's simply called "secured credit card". You can avail of any HSBC card (classic VISA, classic MasterCard, or Mabuhay Miles VISA) on secured credit. The minimum deposit is 12.5k and your credit limit would be 80% of your deposit. The requirements are similar to when opening a savings account (2 valid IDs, residence certificate, 1x1 picture, etc.). Processing would usually take two weeks.

Other banks that offer secured credit cards are BPI (called BPI Express Start--10k minimum deposit; 50-80% credit limit), MetroBank (MetroBank Value MasterCard--15k minimum deposit; 100% credit limit but no annual fee waiver), and UnionBank (any UnionBank credit card--12k minimum deposit; 90% credit limit). BDO and PNB also issue secured credit cards although I am not aware of their terms.

[gentle_touchee]

Most banks would still require you to submit financial documents like ITR, etc. Your credit history from a secured credit card would only make the processing of your application for a regular credit card faster and greatly increase your chances of being approved. Here's a tip, if you use your secured card very often, never delay in paying your bills and at the same time you have a huge savings account with your bank you would most probably qualify for a pre-approved, unsecured regular credit card. Some of the banks that usually send pre-approved credit cards to their depositors are BPI and BDO.

But yes, there are banks that won't require any financial document as long as you have been a credit cardholder for a year with good credit standing. Some of these banks are EastWest Bank and RCBC (Bankard). However, I believe you should at least be 21 years old, have at least a part-time job or any source of income, a landline phone and a TIN (Tax Identification Number).



It's simply called "secured credit card". You can avail of any HSBC card (classic VISA, classic MasterCard, or Mabuhay Miles VISA) on secured credit. The minimum deposit is 12.5k and your credit limit would be 80% of your deposit. The requirements are similar to when opening a savings account (2 valid IDs, residence certificate, 1x1 picture, etc.). Processing would usually take two weeks.

Other banks that offer secured credit cards are BPI (called BPI Express Start--10k minimum deposit; 50-80% credit limit), MetroBank (MetroBank Value MasterCard--15k minimum deposit; 100% credit limit but no annual fee waiver), and UnionBank (any UnionBank credit card--12k minimum deposit; 90% credit limit). BDO and PNB also issue secured credit cards although I am not aware of their terms.

yeah, i actually tried to apply for that BPI express start card last month but the BPI kiosk i've asked from in Riverbanks Marikina said they don't know about it!!

we actually had it (bpi express start) in 2005 (my mom's) but she was not able to use it much. i used it once in awhile and was very convenient but i didn't have money then. i have now!!

mostly from the net! convenient din talaga to not pay big ticket items in cash. i bought several things already in cash, nakakahinayang na pwede naman palang installment.

[onyxguapo]

convenient din talaga to not pay big ticket items in cash. i bought several things already in cash, nakakahinayang na pwede naman palang installment.

That's one of the few advantages of credit card over cash or debit cards--you can purchase on installment, with 0% interest even. I love my cards mostly for the convenience they give me. With just a few clicks on the mouse I was able to get a reserved seating in a concert and also able to book a hotel room in Manila, and I'm in the suburbs! Of course there is always the temptation to overspend but it really is just a matter of discipline and self-control. I would assume you already know how to use a credit card responsibly as you have experienced using your Mom's before. So how was the experience with BPI?

Tell us also about your experiences once you got yourself a secured HSBC credit card. I've been wanting to get one too but too bad there is no HSBC branch here in the "suburbs".

[gentle_touchee]

this is absolutely crazy, if tama ang intindi ko dito sa email sakin ng HSBC! 100K daw ang pag apply ng secured credit card!!t**g sheena nila!

We are pleased to learn of your interest in applying for an HSBC credit card!

Our Secured Card Programme will allow you to apply for a credit card that is secured by a deposit hold-out. Please note that your deposits should be equivalent to 120% of your desired credit limit for Philippine Peso (PHP) deposits or 130% of your desired credit limit for US Dollar (USD)/foreign currency deposits.

To avail of the HSBC Secured Card, you will need to open a PowerVantage account. With a minimum Total Relationship Balance (TRB) of PHP100,000 or its foreign currency equivalent, you may open a PowerVantage Account and enjoy international access to your funds! Total Relationship Balance is calculated based on the average total balances in all your deposit/investment accounts in any one calendar month with HSBC.

Our deposit accounts are also available in the following currencies: Philippine Peso (PHP), US Dollar (USD), Australian Dollar (AUD), Euro Dollar (EUR), Sterling Pound (GBP), Hong Kong Dollar (HKD), Swiss Franc (CHF), Japanese Yen (JPY), Canadian Dollar (CAD), and Singapore Dollar (SGD).

As a PowerVantage customer, you will receive the following privileges:

1. Round-the-clock banking through our PhoneBanking and Personal Internet Banking service, online@hsbc

2. Consolidated monthly statements to help you easily keep track of your finances

3. Free international savings account ATM card

4. Savings and time deposit accounts in various major foreign currencies

5. A free pre-approved standby credit line of up to 90% of your deposits

6. Priority access to loans and insurance products

To open an account, you may visit any HSBC branch and bring one primary ID (e.g. Passport, Driver's License, SSS card, BIR/TIN ID card, PRC ID) as well as one secondary ID (e.g. company ID, ATM card, credit card). Additional documents may be required by the branch as necessary.

Upon presentation of the needed documents and the acceptance of the required initial deposit, the account will be opened immediately within the same day.

[onyxguapo]

this is absolutely crazy, if tama ang intindi ko dito sa email sakin ng HSBC! 100K daw ang pag apply ng secured credit card!!t**g sheena nila!

Ow? Iba naman ang sinasabi sa entry na ito ni Ms. Marie Casas sa kanyang blog about secured credit cards:

http://www.mariecasas.com/2007/12/27...d-credit-card/

Maybe you can try asking her. Alam ko may secured HSBC VISA na sya eh, sabi nya sa isang forum.

[gentle_touchee]

Ow? Iba naman ang sinasabi sa entry na ito ni Ms. Marie Casas sa kanyang blog about secured credit cards:

http://www.mariecasas.com/2007/12/27...d-credit-card/

Maybe you can try asking her. Alam ko may secured HSBC VISA na sya eh, sabi nya sa isang forum.

well as you can see, her blog entry was made on dec. 2007. maybe hsbc has just changed it to that stupid rule now of 100k, which defeats the purpose of a secured credit card. mukhang naging scam nila to promote thier powervantage account.

i got that reply above from a hsbc officer this week only. of course i replied to that email rather "violently" and they got a tongue lashing from me,..di pa nagrereply ( i don't expect any after all). in my reply, i explained to her carefully as in step by step what is a secured credit card based from this thread basically.

also, i inquired din sa Allied Bank thruthier hotline, and no one also knows what a secured credit card is. they even asked their superiors about it, pagbalik, di din daw alam. kahit inexplain ko na nga kung ano ang secured credit card. hayy..

[gentle_touchee]

i already applied for BPI Credit Card, and i recommend them since they KNOW what a secured credit card, because they have a product specific for it called BPI Express Start. Metrobank has too called Value Mastercard but their first year is NOT FREE in annual fee. BPI is.

[bankerII]

...and BPI files a case when you are delayed, immediately.