Secured Credit Card

No credit investigation. No income documents required. – Metrobank Value MasterCard application

Good info for freelancers, college students, or newly self-employed who aren’t ready with their income documents yet. You can Share This article through the link at the end of this post.

I will build my own credit and have my own credit card. I only have a supplementary card and debit card now. I could have gotten myself a Gold credit card based on my old salary but I thought that I didn’t have the discipline to control my spending yet (and my mom discouraged – that’s all). I’ll never know now what crazy stuff I would’ve bought before. I probably wouldn’t have quit yet because I probably got “necessities” (like clothes from Zara or an iPod) on installment.

Now, I’m just thinking of the convenience because it’s such a hassle to manually reconcile my cash on hand with the money I spend. My dilemma now is I’m newly self-employed so I can’t produce the financial statements and ITR yet for the application requirements.


The next best solution is getting a secured credit card. I just keep a small amount in the bank and I get to use a part of that amount as my credit limit. After a year or so of good credit behavior, charging a few small items and paying the card bill on time, I’m bound to get an offer for an unsecured card. Get Rich Slowly readers also recommend this for those with no credit history.

Requirements are typically the same as when opening an account, the deposit, deed of assignment on the deposit, and annual and joining fees.

How can I make the best use of a secured card to build my credit rating?

Buy a few things and pay off the card every month. “People should not get these cards to carry any balance,” Sherry says. “It seems you need to make a few purchases and pay for them. It helps to pay in full every month to show you’ve got this excellent credit rating.”
While secured cards make sure you never spend more money than you can afford while they force you to save, it’s not a good idea to keep one any longer than you have to, experts say.
All secured cards have annual fees and higher interest rates than regular, unsecured cards. If you have enough discipline to use a secured card responsibly, you have enough to use an unsecured card and set up a better savings program on your own.
“We recommend to people that it should be a stepping stone,” Sherry says.

I shopped around. I’m not keen on getting BDO because it’s more advantageous if you buy SM, which I rarely do. And I don’t like dealing with the people at the branch near me. I dropped by the BDO Makati Cinema Square branch earlier today. BDO doesn’t offer secured credit cards. No feedback yet from RCBC Bankard if they offer secured credit cards. B

Issuer Unionbank Metrobank BPI HSBC
Card VISA Classic Value MasterCard Any BPI Card Any HSBC Card
Minimum deposit P12,000 P15,000 P10,000 P12,500
Credit limit (based on deposit) 90% 90% 50-80% 80%
Annual fee TBD P1,000 or P100/mo x 12months waived 1st year waived 1st year
Cash advance 3.5% Up to 50% of CL; 5% or P50, whichever is higher   3% of amount drawn or P300, whichever is higher
Interest 3.5% x ADB 3.5% 2.75% - BPI Classic; 3.4% - MasterCard 3.5% x ADB; 2.75% - Mabuhay Miles Gold
Late Payment Fee 6% based on min. amount due or P300, whichever is higher 7.5% of total amount due or P500, whichever is higher, on payments made after payment due date 6% of past due amount 5% of min. due or P300, whichever is higher
Minimum payment 5% or P500 5% or P500, whichever is higher ? 5% of outstanding bal. or P500, whichever is higher
Overlimit fee P500 ? ? P300
Reprinting of statement fee P300    
Close the credit card/account   Allowed to close the deposit account 35 days after closing the credit card Allowed to close the deposit account whenever or after 1 year and pending income documents and Credit Committee approval Allowed to close the deposit account 14 banking days from closing the credit card
Payment thru Unionbank, Bancnet Metrobank, BancNet BPI HSBC, selected LBC Express Inc. branches, Allied Bank, Banco de Oro and service counters of SM Department Store, SM Hypermarket and selected SM Supermarket branches nationwide. Online - HSBC, BPI Family Bank, Bancnet.
“Perks” U-Protect, U-Secure Metrobank Credit Card Rewards Program, Cash 2 GO (BEAT Installment Plan) BPI Rewards HSBC Rewards
Customer Service 84-186 8-700-700 89-100 85-800

HSBC people are soooo nice. Their phone customer service and personal bankers… I went to the RCBC Plaza branch to inquire and I wanted to open an account right then and there! (No, I haven’t yet) I added a new column in my matrix.
Disclaimer: I inquired with the banks as part of my due diligence. Don’t take what I write as gospel. Please call or visit the banks and conduct your own due diligence if and when you decide to apply for a secured credit card.

December 27, 2007 | Filed Under Cash management, Credit Cards 

Comments

7 Responses to “Secured Credit Card”

  1. Jenna Robles on April 13th, 2008 8:43 pm

    This post is really very helpful. But NEVER apply for BDO’s secured credit card because I had a bad experience with them. Most of their branches wouldn’t know what your talking about and it would take like a month or more for your card to be processed. I had applied February and up to now nothing..no card or any updates even.

  2. jhay on May 17th, 2008 8:30 pm

    hi jenna, as per the post wala namang nakalagay na bdo, did bdo allow secured credit cards?

  3. marie on May 17th, 2008 9:36 pm

    @Jenna and @Jhay
    Glad you found this useful. How’s your application, Jenna?
    The reason I don’t have BDO listed there is, well, I walked into their Makati Cinema Square branch and one of the supervisor-looking ladies told me they don’t have ’secured credit card’ or a ‘credit card with hold-out on a deposit’.
    Equitable PCIB used to have the JCB, with Judy Ann Santos on the flyers, but since the acquisition, I believe they’ve discontinued that line so it’s all BDO Credit Cards now — no secured kind.

  4. Jenna Robles on May 18th, 2008 5:14 pm

    yeah bdo offers secured credit card na. I even have the email correspondence with the bdo call center hehehe. But don’t even attempt to apply, honestly I already cancelled the application because after waiting for like a month and half they haven’t processed the my documents.

    Terrible customer service as they have asked me several times to go to their branch and nothing happened. The thing is if you go to their branches they will inform you that they don’t have the product but if you look for it in their website they have it. You can also inquire through their call center and they would inform you pa of the requirements.

    This started the complication as the callcenter and website is saying that they have it and then the branch officers don’t know it.

    I went ahead with metrobank secured credit card and yeah their service is excellent. After 2 weeks I got my card.

  5. Jenna Robles on May 18th, 2008 5:19 pm

    by the way here is the email inquiry that I sent to BDO and their reply:
    Dear Ms. Robles,

    This will acknowledge receipt of your internet mail dated 31 January 2008.

    Please see our reply to your queries below:

    1.) I have opened an account under my beneficiary’s name. Now I am
    interested in applying for a secured credit card in the application what
    information would I write on the borrower’s information mine or my

    beneficiary? -The credit card application must be under the name of the

    beneficiary.

    2.) My beneficiary is not employed, what documents do I need to send her to
    support the application for the secured credit card?

    Documentary Requirements:

    1. Credit Card Application
    2. Deed of Assignment - the beneficiary must fill this up at the Branch
    3. One (1)valid ID of the beneficiary

    Should you have other inquiries or concerns, please feel free to contact
    any one of our Customer Service Officers at 631-8000 or you may email us
    again and we will be happy to assist you.

    Dina Victoria
    eServices Section
    BDO Customer Contact Center

    and plus the link to their website : http://www.bdo.com.ph/Personal_Banking/Credit_Cards/bdo_shopmore_mastercard.htm?id=3&mid=1&state=card2,0,pB3

    scroll to the bottom and you will see this

    Apply Now!

    Click the following links to view and download the Shop More application forms (for Non-OFWs):
    Shop More Application Form 1
    Shop More Application Form 2

    For our Kabayans working abroad, please use the Asenso Kabayan application forms by clicking on the following links:
    Application Form
    Deed of Assignment Form

  6. jhaylogs on May 18th, 2008 5:43 pm

    hi marie sana ma confirm mo to sa bdo, ill wait it to your blog. thanks

  7. Rony on July 5th, 2008 1:21 pm

    Would there be a bank here in the Philippines which would issue a secured credit card and then automatically convert it into a regular “unsecured” credit card after a period of timely payments?

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