Home PEx Business and Careers Banking and Finance

Are you Ready to Own your First Credit Card? Here’s a Quick Beginner’s Guide for You

MoneyMaxPHMoneyMaxPH PEx Rookie ⭐
edited June 2018 in Banking and Finance

Here are the important things to consider when shopping for a credit card in the Philippines:

  • Annual fee: The membership fee you pay for the convenience of using a credit card. Many starter credit cards have waived annual fees for the first year, so you can save money as a new credit cardholder.
  • Interest rate or finance charge: The interest that will be charged when you carry a balance over from the past month
  • Penalty fees: The bank charges a late payment fee when you don’t pay at least the minimum balance by the due date. You also have to pay an over credit limit fee when you go beyond your credit limit. If the bank doesn’t charge it, your transaction will be automatically declined when you exceed your credit limit.
  • Rewards program: Redeemable points for every amount spent using the credit card, including cash back rebates, annual fee waivers, gift certificates, and air miles. Note that credit cards with very low annual fees or interest rates usually don’t offer rewards.
  • Eligibility requirements: The minimum age, income, and other requirements to qualify for a credit card


Some reminders for first-time credit card users:

  • Pay it off in full every month. This will keep you from paying finance charges and late payment fees.
  • Don’t spend beyond your means. Especially if you’re given a six-digit credit limit, never make the mistake of maxing out your first credit card. It’ll be harder to pay your monthly balances that way.
  • Monitor your credit card transactions and statements regularly. If you notice anything suspicious, report it immediately to the bank.
  • Never share your credit card details. Protect yourself from credit card fraud by making sure you don’t give out your credit card and personal information to anyone.

For more info, you may check out this link: 

https://www.moneymax.ph/blog/first-credit-card-guide

«13456

Comments

  • So this is my first time applying for one.

    First thing to ask is what is the general requirments sa pag apply ng credit card?

    Which bank offers the better card? (BDO, BPI, RCBC, UNION, HSBC, metrobank)
    Ano ba pinagkaiba nila?

    Anything else i need to know?
  • mackygoofmackygoof PEx Rookie ⭐
    So this is my first time applying for one.

    First thing to ask is what is the general requirments sa pag apply ng credit card?

    Which bank offers the better card? (BDO, BPI, RCBC, UNION, HSBC, metrobank)
    Ano ba pinagkaiba nila?

    Anything else i need to know?

    If may cardka,statement of account lang. Else, it depends on the creditcard company.
    My first time applying, hiningan lang ako ng payslip. the 2nd time, statement of account lang. the 3rd time, nagoffer na agad sila.
    wag ka sa union bank if customer support habol mo. it takes hours for their customer support to answer. bpi ang trip ko, although maliit ang credit limit, free pa ang membershipng supplementary. HSBC gives large credit limit kaya ayaw kong gamitin at baka mabaon ako sa utang. bdo, rcbc at metrobank, i have no experience.
    citibank, i hate it due to customer support keep calling and asking if i want to avail insurance, etc. amex peso platinum, the best i had but limited use for people like me who'd go for 1 star hotel than 5 star hotel. Not accepted by most cheap merchants ang amex, panay visa at mastercard lang. hsbc maganda siguro security since nahack ang bank nila sa europe before but i find it hassle to memorize too many passwords unlike bpi na meron akong e-card to use for online purchase which is separated from my ordinary creditcard.
    I'm sure madami kang info makukuha from experience ng iba. If new applicant ka ng card, better not be picky. Start being picky once meron ka na. my two cents.
  • Since this is your first time to apply for credit cards, you must prepare a photocopy of the following:
    * 2 valid IDs: company ID, SSS card, TIN card, postal ID, voters ID, passport, etc (you may also include NBI clearance if you have)
    * 2010 ITR
    * payslips (within the last 3 months)
    * proof of billing (this could be under your name or under your parent's name)
    Just go to the bank and tell the bank staff that you want to apply for a credit card. Bring all available requirements (photocopy and original, the staff might verify the photocopies against the original)

    Here are some of the major considerations in selecting your bank:
    * ease of payment such as number of bank branches, mode of payment, etc: for example, in BPI you can enroll your CC for autodebit payment from your existing savings account
    * finance charges and late payment fees (different banks have different finance charges and late payment fees)

    You may apply for credit cards in those banks in which you have an existing savings/current account. This will surely increase your chances of getting approved. As what mackygoof said, better not be picky. Usually, as first time applicant, banks will give you lower credit limit. Take good care of your credit history once you have your card. Always pay in full. If you cannot pay in full, pay at least the minimum amount due.

    Hope this helps.
  • thanks, both of you.

    paano ba ang sistema netong credit card? san kinukuha ang bayad? sa savings account? or ibibill ba saken to tpos babayaran ko in cash per month?
  • You will be billed monthly. You can pay naman in cash. Just in case ayaw mo pumila sa bank to pay the bill, you can enroll for autodebit arrangement. Sa BPI, you can pay your bills thru bpiexpressonline IF you have an existing account with them. This way online na ang payment mo at hindi ka na naabala pa sa pagpila. Search mo na rin yung specific threads for different CC companies to know more about their products, payment systems, etc.
  • Have your first credit card even if you can't provide financial documents or if you always get denied with Metrobank Save & Swipe Secured Credit Card Program.

    90% of your hold amount will be your credit limit. As low as 12000 deposit for a 10000 credit limit.

    I am handling Metrobank branches in Makati so I could personally assist you or refer you to a branch manager for faster processing of 7 days. Please contact me at 09178833427 or at [email protected]

    Edgar P. Zamora Jr.
    Area Sales Manager
    Metrobank Card Corporation
  • RINOABREARINOABREA PEx Veteran ⭐⭐
    epzamorajr wrote: »
    Have your first credit card even if you can't provide financial documents or if you always get denied with Metrobank Save & Swipe Secured Credit Card Program.

    90% of your hold amount will be your credit limit. As low as 12000 deposit for a 10000 credit limit.

    I am handling Metrobank branches in Makati so I could personally assist you or refer you to a branch manager for faster processing of 7 days. Please contact me at 09178833427 or at [email protected]

    Edgar P. Zamora Jr.
    Area Sales Manager
    Metrobank Card Corporation


    Does this have any restrictions? Is it going to be 100% approval? What will happen to the hold amount if an applicant gets disapproved?:confused:
  • shamashu9shamashu9 PEx Veteran ⭐⭐
    who want's to have a metrobank credit card, i will refer you. send me a PM with your COMPLETE NAME and CONTACT NOs. mobile/landline
  • ms. chelleyms. chelley PExer
    edited March 2019
    Wala talaga akong idea how credit card works Help please? Ano pinaka okay na credit card and mahirap ba talaga makakuha? Ano ang basis nila in declining your application?

    Ano yun annual fee? Interest? Credit limit? And other charges?

    Suggestions please? Thank you
  • Halos pare-pareho naman ang credit cards. Walang best for first timers. What you should look for is the one that will be most beneficial to you depending on your spending habits. If you shop a lot in supermarkets and department stores, get a cash back card. If you like to fly, get a mileage card. There are also cards that give rebates for fuel and medicines. It's really up to you to choose which one you like best.

    Regarding your other questions, Google is your friend. There's a bunch of articles regarding credit cards for first timers. Here's one to get you started:

    http://www.discovercard.com/discover/data/account/credittools/howtouse.pdf

    Hope it helps!
  • Thanks! My main purpose is to use it in case wala akong cash for supermarkets :)
  • kimerrankimerran PEx Rookie ⭐
    Thanks! My main purpose is to use it in case wala akong cash for supermarkets :)

    get one that is widely accepted, visa or mastercard will do. :p
  • avidavid PEx Veteran ⭐⭐
    Wala talaga akong idea how credit card works :| Help please? Ano pinaka okay na credit card and mahirap ba talaga makakuha? Ano ang basis nila in declining your application?

    Ano yun annual fee? Interest? Credit limit? And other charges?

    Suggestions please? Thank you :)

    i suggest you inquire about credit cards in the bank where you have an account for quite some time (and it might help if your money with them is substantial)...they might be kinder in processing/accepting your application.

    like what was said above, choose the card that fits your lifestyle/spending habits. having a credit card is convenient as long as you are able to pay your outstanding balance in full every month to avoid being charged interest/incurring more debts.
  • wag ka na mag credit card TS.
  • kimerrankimerran PEx Rookie ⭐
    speciman wrote: »
    wag ka na mag credit card TS.

    bakit naman? credit card is good for building good credit standing. :)
    and for emergency expenses.
  • Any credit card is good actually. If you're not frequently flying / travelling abroad, just get a local card. The annual fee is very cheap and it's quite convenient as well.

    If you're after the lowest annual fee, I know RCBC has one without any point accumulation (myDream?).
  • notnimdab2009notnimdab2009 PEx Veteran ⭐⭐
    TS, just make sure that you pay all your total amount due so that you will not have any interest charges. I can still remember when i had my first credit card. Parang feeling ko magician ako as in you just present the card and you get the goods. As far as i can remember nung i explain sa akin nung nag re refer hindi naman daw kailangan bayaran lahat ng credit mo at yung minimum amount due lang ok na..... ganun nga nangyari and months later i realized i am just paying for the interest and hindi nababawasan ang utang ko... ganun usually nalulubog sa utang mga first timers. so wag kang padadala... just pay everything that you bought using your credit so that ala kang interests charges.
  • notnimdab2009notnimdab2009 PEx Veteran ⭐⭐
    Annual Fee ay yung fee na babayaran mo sa credit card bank every year. Yung unang year ay usually free.

    Interest can come in two , yung interest sa mga purchases mo pag nde mo binayaran ng buo pagdating ng due date mo, usual interest ng mga bank is 3 to 3.5% per month. Malaki ito kaya dapat bayaran mo ng buo para ndi ka ma charge.

    Interest on Cash Advances - if you use your card to get cash then immediate ang interest dito. I dont advise using this feature, malaki interest.

    Credit Limit - ito yung limit na maari mong utangin sa card mo. Usually bank will give you a starting credit limt of 25K so that means you can use your card to purchase anything up to 25K.

    Marami pang mga gimik ang mga card company may mga call for cash pa yan or balance conversion. Basta dapat gamitin mo lang card mo sa amount na kaya mong bayaran ng buo at the due date.
  • [JZ] Nightmare[JZ] Nightmare PEx Influencer ⭐⭐⭐
    some banks "MAY" waive your annual card fees if you have investments with them.
  • froshie1froshie1 PEx Influencer ⭐⭐⭐
    Any CC will do. Tip ko get the CC that has a payment facility in your payroll's ATM para mabilis bayaran.
Sign In or Register to comment.