There are many types of credit cards in the Philippines, each with its features and perks. Here are just some of the most common types out there so you can start to compare credit cards.
Before you can start to compare the credit card you want to others, know that you can actually increase your chances of approval by keeping these helpful tips to mind:
1. Settle Outstanding Debts
When you apply for a credit card, you're essentially borrowing money, which means it’s best to eliminate any outstanding debts under your name. Make a good impression on credit card providers by proving you’re a responsible applicant who can maintain a good credit score.
2. Prove that You Have a Stable Source of Income
You may have this impression that having a big, fat paycheck warrants an easy approval of a credit card application. It’s true to some extent. But what banks actually check is the stability of your income stream.
You can prove that you have a stable source of income by presenting these essential documents: Certificate of Employment for employed applicants and business registration and ITR for self-employed applicants.
3. Open a Savings Account
This is ideal for anyone without a stable source of income, particularly freelancers and students. Open a savings account with the bank where you’re planning to apply for a credit card so you can easily get approved for a secured credit card.
4. Review the Requirements
Before you apply for a credit card online, make sure you’re eligible for it. Review all requirements and be ready for any additional documents the bank might ask from you. Go above and beyond and prepare the documents you think can help you get approved.
5. Choose a Cheaper Credit Card
If you apply for a cheaper credit card, there’s a big chance the requirements are a lot easier as well. Aim for a credit card that your budget can maintain. If possible, compare credit cards with lower interest rates or waived annual fees.
6. Learn How Not to Get Rejected
You can also increase your chances of getting approved by knowing the common reasons for rejection and trying your best to avoid them. Learn from the mistakes of others and adjust your strategy accordingly.
Before you can start your credit card comparison in the Philippines, make sure you have your documents ready. The exact requirements may vary depending on the credit card provider, but here are the most common credit card requirements:
Yes! As to how to apply for a credit card online, you can apply through the bank’s website or through online comparison platforms like Moneymax. Don’t forget to compare credit cards and their rates, perks, and other features before you send your credit card application.
It depends on the bank you applied from. After submitting your credit card requirements, some banks might take a week or two to process your application. Other banks can be as fast as three to five days, while virtual credit cards like the Metrobank ON Virtual Mastercard can be processed in as fast as 48 hours.
Most cardholders use them to pay for products and services such as grocery items, utility bills, and airline tickets. Some cardholders, however, use them to build a good credit score and earn credit card rewards. Make sure to apply for a credit card that suits your lifestyle so you can use it to your advantage.
Apart from the printed monthly statement of account, you can check your credit card bill via online banking, mobile banking, and e-mail. As for the credit card payment, you can pay your credit card balance over the counter, online, or via payment centers like Bayad Center, Cebuana Lhuillier, and SM Bills Payment.
Credit cards come with corresponding fees, but you can avoid some of them when you use your credit card responsibly. Here are the most common fees to remember before you apply for a credit card online:
Many things could happen if you don't pay your credit card bill. First, you can easily build up credit card debt. When you skip a payment, your unpaid balance will go over to the next billing cycle, which will then include a finance charge and a late payment fee. This can also lead to a bad credit score, which will jeopardize your chances of getting a new credit card. And more importantly, you’ll end up losing your credit card perks.
Banks conduct credit evaluations when deciding an applicant's credit limit. To accurately determine your creditworthiness, banks consider a variety of factors such as your income, credit history, and debt-to-income ratio.
Just because you were denied a credit card doesn't mean you can't be approved the next time. To increase your chances of approval, wait at least three months to re-apply. This is to avoid hurting your credit score and also give you enough time to compare credit cards until you find the right one for you.