Let’s face it! Here in the Philippines, securing a credit card is not a walk in the park especially if you are a freelancer and it is your first time applying for a card. It is difficult for freelancers to get a credit card because of the ITR requirements. Income tax returns are required by banks to make sure that you are able to pay what you purchase. These are legal requirements submitted to the Bureau of Internal Revenue. But, what if you can not provide an ITR, what can you do? The obvious answer is to apply for a secured credit card.
What is a secured credit card?
A secured credit card is a type of card where you are required to open an account and deposit a certain amount of money. This will serve as a hold-out deposit or a guarantee in any case you fail to pay your obligations. Your credit limit would be 80%-90% on your deposit. You do not need to submit an ITR. Securing this type of credit card will help you establish a good credit score that you can use to secure a regular credit card. Six months of using the card, paying your bill in full and on time, will give you a good credit score. You can now ask the bank to upgrade it to a regular credit card. As soon as you have a regular credit card, you can now use it to apply for other regular credit cards in other banks.
How to Open a Secured Credit Card?
- Open a bank account in a bank that offers a secured credit card.
- Fill out forms and present two valid IDs.
- It’s generally 100% approved so you can just wait for your card after it is processed.
What Banks Offer a secured Credit Card?
AUB SECURITY CARD
- Annual fee: No annual fee for life
- Interest rate: 3.50%
- Minimum deposit:
- Easy Mastercard: PHP 25,000
- Classic Mastercard: PHP 50,000
- Gold Mastercard: PHP 125,000
- Platinum Mastercard: PHP 250,000
BPI Express Start
- Annual fee: PHP 1,320 to PHP 5,500
- Interest rate: 3%
- Minimum deposit: PHP 10,000 (ATM/Passbook savings account) / PHP 50,000 (time deposit)
Metrobank Save & Swipe
- Annual fee: No annual fee for life (M Free Mastercard) / PHP 1,500 to PHP 6,000 (all other Metrobank credit cards)
- Interest rate: 2.49%
- Minimum deposit: PHP 17,000
RCBC Bankard InstaCard
- Available cards: All RCBC credit cards
- Annual fee: PHP 60 monthly (regular cards) / PHP 150 monthly (premium cards)
- Interest rate: 2.50%
- Minimum deposit: PHP 10,000 / USD 2,000
Security Bank Fast Track Secured Credit Card
- Annual fee: PHP 2,000 to PHP 4,000
- Interest rate: 3.50%
- Minimum deposit: PHP 15,000 (savings account) / PHP 100,000 (time deposit)
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