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.
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.
hi jenna, as per the post wala namang nakalagay na bdo, did bdo allow secured credit cards?
@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.
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.
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
hi marie sana ma confirm mo to sa bdo, ill wait it to your blog. thanks
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?
can i get the gold bpi credit card when i use this secured credit card application?
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.
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.
did you get HSBC? I'm planning to get their secured CC. what do they require (ei. IDs, picture, etc
)?
Thanks
tumawag ako sa HSBC. 100k daw ang minimun… nalilito ako…
ano ba requirements nila? other than those listed above…
thanks
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.
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..
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.
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.
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!
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.
I recently got a new visa card. I am confident that all of my credit cards are secured.
I have not much time, but I've got many useful things here, love it!
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.
I forgot to add: Sabi noong nakausap ko sa Unionbank branch (Caloocan), eh, may credit investigation pa daw.
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.