27 December 2007 ~ 35 Comments

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.

35 Responses to “Secured Credit Card”

  1. Jenna Robles 13 April 2008 at 8:43 pm Permalink

    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 17 May 2008 at 8:30 pm Permalink

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

  3. marie 17 May 2008 at 9:36 pm Permalink

    @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 18 May 2008 at 5:14 pm Permalink

    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 18 May 2008 at 5:19 pm Permalink

    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 18 May 2008 at 5:43 pm Permalink

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

  7. Rony 5 July 2008 at 1:21 pm Permalink

    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?

  8. deby 22 March 2009 at 8:40 am Permalink

    can i get the gold bpi credit card when i use this secured credit card application?

  9. aji 6 June 2009 at 2:46 am Permalink

    this article has helped me a lot. to add: if you are after the higher credit limit and convenience, go for metrobank value mastercard as the process is really easy (i just opened a time deposit account with them and signed a pledge document) then i got my card in a month. the downside is that metrobank value mastercard has only one credit limit, that is, if you max your credit limit and apply for installment, you would only be able to free your credit limit either by waiting for the installment period to end, or if you pay full.

    bpi's card on the other hand offers two credit limit, one for the installment and the other similar to a revolving credit line. the downside of bpi's credit card is that the credit limit ranges from 50%-80% of your deposit. i know somebody who made a deposit only to find out that he can only use 50% of his deposit as his credit limit. it was so frustrating because he set up the account to purchase a laptop. i think it's because they still do some CI, and the process is more complex with bpi.

    for hsbc, they offered to give me the card a week after the deposit and they offer 80% of the hold out amount for the card's credit limit. i did not know if they could deliver on their promise, but if they can make it possible then it's a great deal. the upside is that you can increase your deposit anytime then ask for an increase in credit limit; not like metrobank where you have to wait until you reach the period when the time deposit ends, and only then can you increase your deposit to increase your credit limit.

  10. sxyshandy 8 June 2009 at 5:34 am Permalink

    So I closed my HSBC credit card a few weeks ago. Didn't do much. I got an unsecured RCBC Bankard, probably from my HSBC records. So I guess in that way, a secured CC helps you build credit but not really with the same card company. Even with my impeccable payment record at HSBC, I didn't get a credit limit increase or unsecured CC from them. I did get my annual fee waived though.
    I'll probably open a new one with Metrobank this week just so my capital, is, well, secured. Let you know what happens.

  11. amaw19 8 June 2009 at 9:12 am Permalink

    did you get HSBC? I'm planning to get their secured CC. what do they require (ei. IDs, picture, etc
    )?

    Thanks

  12. rexj 12 June 2009 at 1:02 am Permalink

    tumawag ako sa HSBC. 100k daw ang minimun… nalilito ako…

    ano ba requirements nila? other than those listed above…

    thanks

  13. sxyshandy 12 June 2009 at 3:25 am Permalink

    Ouch maybe HSBC changed their policy. Try asking sa branch. Or opening with Metrobank was pretty hassle-free too. I have a bunch of application forms with me, actually. :)

  14. jane 26 August 2009 at 5:29 pm Permalink

    this colum was very helpful! Igot my BPI secured credit card 5 months ago…,by reading your column with lots of infos really helped!i plan to maintain a good credit so i can be eligible for a real unsecured credit card..thanks a lot..

  15. credit cards 10 September 2009 at 11:47 pm Permalink

    Fraudster is always there. Though technology do upgrade, fraudster will find a way to stole money from our account. Nowadays, i don't think there such thing as secured credit card unless we cardholder should be alert at all times.

  16. Visa 10 September 2009 at 11:50 pm Permalink

    Fraudster, identity theft and a lot more. All of these are bad persona who wants to stole money from us. We need to be more alert at all times.

  17. Visa 15 September 2009 at 12:23 am Permalink

    You are being honest in your spending habits, Not all people have the guts to say that they cannot control their spending urge. I agree with you that people should not spend more than they actually earn to avoid the burden of paying-off debt with high interest rates.

    I have a Visa credit card and been using it for buying necessities only. Well, I sometimes break my own rules and buy really expensive and nice dress and shoes but so far, I have been able to pay my bills on time and full. So all is well.

    Also, I noticed that the most important factor you are looking for in a bank is quality customer service. I also want to entrust my money to the people who actually care about me and not just my money.

    Wise spending everyone!

  18. credit cards 15 September 2009 at 4:21 am Permalink

    Interesting post. This is a great help for everyone who uses credit cards. Now they know how secured a credit card is. Though there are plenty of fraudster out there, bank always make sure that cardholders info are secured.

  19. Diners Club 16 September 2009 at 8:52 pm Permalink

    I recently got a new visa card. I am confident that all of my credit cards are secured.

  20. business_cash_advance 29 September 2009 at 2:34 am Permalink

    I have not much time, but I've got many useful things here, love it!

  21. Jeric 11 December 2009 at 11:00 pm Permalink

    Avoid Unionbank! Seriously. Parang regular credit card application ang daming hinihingi like TIN or SSS number! Tapos noong una hindi pa nila alam kung ano ang secured credit samantalang kapag nagtanong ka sa customer service, eh, alam nila.

    Buti pa ang Metrobank hassle-free talaga at accommodating pa.

  22. Jeric 11 December 2009 at 11:10 pm Permalink

    I forgot to add: Sabi noong nakausap ko sa Unionbank branch (Caloocan), eh, may credit investigation pa daw.

  23. Koolarts 10 January 2010 at 1:37 am Permalink

    hello there, i have inquired with metrobank and also, with hsbc. both seems to be ok. by monday i will apply for secured credit card to either one and i will post here my axperience. maybe even tell which one is good or better.btw i was also declined of unsecured ccby bdo and also by hsbc before, that is why my last resort is this secured cc.

    • Elai 5 July 2012 at 9:27 am Permalink

      hi,

      is there any way you can share to me, how much is there deposit fee or anything to that regards for the secured cc?

      thanks.

    • louisa 23 October 2012 at 2:23 pm Permalink

      sabihin nyo naman kung magkano ang ideposit pag secured cc. para mas helpful s mga readers n kgaya ko. salamat.

      • marie 23 October 2012 at 2:55 pm Permalink

        Hi Louisa. It’s up to you how much you want to deposit and how much you want your credit limit to be.
        For example, at HSBC – to get P10,000 credit card limit, you have to open a savings account (P12,500 = 10,000/80%).
        For Metrobank naman, to get P10,000 credit card limit, you open a time deposit (P11,111.11 = 10,000/90%)
        You can do this for bigger amounts. For a P100,000 credit card limit, open a time deposit of P111,111.11 (100,000/90%).
        HTH!

  24. jL 8 October 2010 at 1:52 pm Permalink

    Ano po requirements in applying secured credit card sa metrobank?

  25. Ken 25 October 2010 at 12:22 pm Permalink

    For those who already have Metrobank/BPI secured credit card, please share your experiences. I want to have CC from them too. TIA.

  26. mychard 2 November 2010 at 5:17 pm Permalink

    i opened personal account at metrobank, last jan 2010, i applied with regular cc but denied. Now i want to apply d secured cc. Is it ok to apply and open another account at metrobank 4 d secured cc? Please help me tnx

  27. Allan 4 January 2012 at 2:46 am Permalink

    Walk in to any metrobank branch.
    Open an ccount.
    Tell the new accounts officer that you would like to apply for a secured cc and use your dep as hold out.
    You have to surrender your ex: passbook or certificate of td to them.
    They will ask you to fill out a form and after which you just wait for 1 to 2 wks and youll get ur secured cc via courier.

  28. fewzzz 15 April 2012 at 7:17 pm Permalink

    Hi! Just want to asked what is the difference between a regular and secured cc? Can we avail an installment item using a secured credit card? Need help!!!! anyone pls….

  29. officeboy 24 17 April 2012 at 7:06 pm Permalink

    I work as a call center agent for two years now and like many others here, my application from BPI,BDO,RCBC,Metrobank,Citibank,HSBC,Unionbank,Eastwest Bank,PNB,UCPB were also denied several times and isa lang reason kung bakit, dahil ang HR namin hindi nageentertain ng personal calls even from banks. Wala din ako savings account sa kahit anung banks kasi sa ATM ko lang tinatago at hindi ko winiwithdraw ung natitira sa sweldo ko every cut off for two years. Then sabi ng classmate ko nung High School na Teller sa BPI SM Fairview, pwede ako magapply ng secured credit card with minimum 10,000 PHP na deposit. Ayun nagwithdraw ako sa ATM ko ng 100,000 PHP,then after 1 weeks dumating ung card ko and nagulat ako na BPI Classic credit card ang binigay sa akin with 40k na CL.

  30. jpaqs 6 September 2012 at 8:44 pm Permalink

    officeboy 24 –> Clarification, you withdraw from you ATM(BPI ba yan) and applied for a secure credit card? Instead of a secure credit card a regular credit is what BPI provided you?

  31. shelltal bigay 21 September 2012 at 6:01 am Permalink

    just wondering..bkit there will be an interest that will apply on a secured card eh..pera mo naman ung ginamit mo to open.this is for just having a limit on the card that is equal to your deposit..annual fee using the card is reasonable as well as if your limit provided by the bank was above your deposit?

    • marie 23 October 2012 at 2:59 pm Permalink

      What’s nice is napapaikot mo yung money mo na otherwise nakaupo lang sa deposit or if you spend all that money at once, eh di ubos na. You get to use a credit card with all the Mastercard / VISA perks and rewards, installment payments, which you won’t be able to do with just cash.
      Siguro if you can get an unsecured credit card na soonest, para you’re free to do with your deposit whatever you want, that would be best. Temporary lang naman na solution ang secured credit card.


Leave a Reply