For little over a decade, credit cards have been been giving a new dimension to the way we transact financially. Since its inception, the utility factor has been growing to reach newer heights. Some of the latest trends seen in the world of credit cards relates to online purchases and EMI conversion of large value charges. It continues to dominate the retail credit space since there is no other product that has comes closer to the kind of features and benefits this mobile instrument offers.
Filipinos are upgrading and equipping themselves with latest financial tools to match their lifestyle needs. What used to be product once with psychological inhibitions is today getting into the wallets of the average Filipino. Yes, we’re talking about credit cards which is used by millions of Filipinos as an answer to their day to day financial needs. In Philippines, a plethora of credit cards are offered by nearly all major banking institutions in different categories such as shopping, travel, grocery etc. In the next section, let us take a look at some advantages of having a credit card. For those of you new to the world of credit cards, is vital to understand its uses before getting one.
Advantages of Credit Card
- Heavy on the mobility factor, you can carry one anywhere. Credit cards are accepted by millions of establishments in Philippines and around the world as a medium to transact financially.
- It's rather convenient to use the card to pay for the purchase than carrying cash(risky) in wallet or looking for an ATM to withdraw some. Instead, it's easy to swipe or present the card to the merchant to charge the purchase value.
- Having a card helps in case of emergencies or situations such as month end where one does not have sufficient monetary resources. One can always use the card and payback as per convenience.
- Filipinos who are eager to build a credit can easily trust this instrument to kick start their credit journey. This is the most recommended method to build a solid credit history since transactions are more frequent here compared to other products.
- Large ticket purchases such as buying a home appliance or a phone can be easy if you do not have the required monetary resources upfront. The EMI options lets you procure the article and payback in monthly installments, almost at negligible interest charges.
- The card member can use the card for a variety of transactions such as paying for purchases, withdrawing cash, balance transfers and much more.
Out of various classifications of credit cards, one of the most prominent one is based on the security factor. Card issuers in Philippines offer Secured and Unsecured credit cards. While the latter is more popular and commonly used, there are a significant numbers of offers made in the secured segment too.
Secured Credit Card In Philippines
Based on multiple factors such as the credit history and background of the applicant, the bank will offer a credit card on the basis of a security amount you provide to secure the credit. The value of the revolving credit is determined on the basis on the collateral amount furnished to the bank.
Otherwise, it works like a normal credit card and comes with the same kind of benefits, laden with features of international standards. It is offered to people with a bad or no credit that helps them in building credit over a period of time. After successful usage over a period of time, the bank may decide to convert the card into a normal credit card on the basis of mutual consent.
Benefits of Secured Credit Card
- The utility of this card is just like a normal card which can be used to make a variety of transactions such as purchases online and offline, cash advances, balance transfers etc.
- Assignment of credit limit is more or less the same as the value of the security provided. If you’re looking for a higher limit, consider increasing the collateral value.
- It's relatively easy to obtain with minimal documentation and reduced processing time since the bank can cash on the security amount to cover perceived risks.
- The interest rates are slightly lower when compared to the unsecured counterpart, helping you save more, each billing cycle.
- Helps immigrants to set up a credit in Philippines, specially for the ones who will be living in the country for a longer time.
- As a cardmember, you get access to host of online and offline tools to access the card account and manage payments.
Banks Which Offer Secured Credit Cards in Philippines
Most of the cards available with these banks can be availed under the secured credit card program. One can also get supplementary cards and a host of other benefits under this program. Before signing up, inquire about the current rates and fees to ensure you have the most up to date information at your disposal.
How Can I get A Secured Credit Card in Philippines?
One can voluntarily opt for a secured credit card if he/she wishes to do so. Many choose this variant as it not only helps them with building credit but also makes them spend more responsibly. You can apply for a secured credit card by approaching the bank after choosing the type of card you would like to apply for.
Most of them let you choose a card of your choice in their portfolio. The applicant is required to provide a monetary security upfront. Monies held in savings/deposit instruments can be pledged as security during application.
How Can BankBazaar.ph Help You in Finding The Right Credit Card
Scouting for information on credit cards can be quite a task, specially if you’re looking for them over a search engine using a set of keywords. It can quite a mess in terms of multiple windows and tabs as it does no good in our quest for concrete information. It can be furthermore fruitless if you’re calling various banks to learn about the products available. In the melee, you may end up losing critical information.
Online neutral websites such as bankbazaar.ph provide the information you require under a single window. The easy-to-navigate menu and detailed information on various credit cards by banks in the country, helps you in the task of getting an aerial view of critical aspects involved in the product. Do make it a point to help yourself with pages on this site to be self equipped with information before you decide to apply.