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How Do You Get a Credit Card When You Are a Freelancer?
Posted by Dianne
on
11:50 AM
in
Credit Cards
Getting a credit is usually the dilemma of freelancers in the Philippines. Credit card companies do not honor freelance jobs as stable source of income which is one if not the most important prerequisite when applying for a credit card. Banks will not give a damn whether you earn dollar rate. All that matters is that you must be employed by a legitimate employer from the Philippines.
I once had this problem. I don't know how to get a credit card. It's not because I wanted to splurge on online shopping but because I wanted to have a convenient means of booking flights, online subscriptions and things like that.
Upon looking for an answer, I saw that the major banks in the Philippines offer what they called secured credit cards. This are credit cards given to students, freelancers, basically those who cannot accomplish the document requirements such as Income Tax Return and Certificate of Employment. Yes, there's a way one can get a credit card without such requirements. But here's the catch: you need to deposit a certain amount. And here's more. You cannot withdraw the money during the duration that you're using the credit card. So you can only get it once you close your credit card account.
Here's the summary of what Philippine banks require in order for you to get a secured credit card:
I was able to get Metrobank's secured credit card. As a matter of fact, as I see it, they really encourage this type of credit card application. It seems that the bank employees get a commission for every credit card approved using this type of application. According to the teller who processed my application, this is the fastest, sure-ball way of getting a credit card. He also told us that after a year or so of using this credit card (actually even 6 months), once our credit rating is already established, he can endorse us to the unsecured credit card or even the M Card which does not require annual fees. We'll see.
I haven't experienced the other. But I had an experience with HSBC. That time, I am still not aware of the secured credit cards. I asked a bank officer how to apply for a credit card. Since that time, I was a government employee, I am not eligible to apply (although this is quite unfair). She told me that I can get a credit card if I deposit a minimum of P100,000. They're going to give me a pre-approved credit card.
That's all for now. I'm gonna give everyone an update once I get an unsecured credit card. :)
I once had this problem. I don't know how to get a credit card. It's not because I wanted to splurge on online shopping but because I wanted to have a convenient means of booking flights, online subscriptions and things like that.
Upon looking for an answer, I saw that the major banks in the Philippines offer what they called secured credit cards. This are credit cards given to students, freelancers, basically those who cannot accomplish the document requirements such as Income Tax Return and Certificate of Employment. Yes, there's a way one can get a credit card without such requirements. But here's the catch: you need to deposit a certain amount. And here's more. You cannot withdraw the money during the duration that you're using the credit card. So you can only get it once you close your credit card account.
Here's the summary of what Philippine banks require in order for you to get a secured credit card:
| Issuer | Unionbank | Metrobank | BPI |
| Card Type | Visa Classic | Value Mastercard | Any |
| Minimum Deposit | P12,000 | P15,000 | P10,000 |
| Credit Limit (% of deposit) | 90% | 90% | 50-80% |
| Credit Limit (% of deposit) | 90% | 90% | 50-80% |
I was able to get Metrobank's secured credit card. As a matter of fact, as I see it, they really encourage this type of credit card application. It seems that the bank employees get a commission for every credit card approved using this type of application. According to the teller who processed my application, this is the fastest, sure-ball way of getting a credit card. He also told us that after a year or so of using this credit card (actually even 6 months), once our credit rating is already established, he can endorse us to the unsecured credit card or even the M Card which does not require annual fees. We'll see.
I haven't experienced the other. But I had an experience with HSBC. That time, I am still not aware of the secured credit cards. I asked a bank officer how to apply for a credit card. Since that time, I was a government employee, I am not eligible to apply (although this is quite unfair). She told me that I can get a credit card if I deposit a minimum of P100,000. They're going to give me a pre-approved credit card.
That's all for now. I'm gonna give everyone an update once I get an unsecured credit card. :)
