How Tos in Applying for a Credit Card in the Philippines

Credit cards and users abound in the Philippines for many reasons. For one, Filipinos love to shop either in the malls or online. Credit card offer a convenient mode of payment. Even major fast food joints accept them. Sadly, many still have the misconception that one can swipe and spend to his heart's content this plastic money called credit cards. It is a convenient tool to allow you to purchase things you need without carrying much cash with you. But credit can also become a quick sand for debt to those who do not use and manage it wisely.

If you are really bent on getting one for yourself, the next best step is to look for the perfect card to match your needs. Many card issuers in the country offer need-specific credit cards to complement the lifestyle of any particular user. Some cards are tailored to women, another for families, there is even one for those who gas up their cars regularly.

The importance of knowing which card is appropriate for your needs becomes more important in these hard times since certain credit card issuers or banks offer lower interests or charges for certain goods and services. For instance, a certain credit card would charge only 2.5% interest for basic goods purchases, while other non-basics are charged 3% or 3.5% for the same thing. Still others would offer special rebates for specific purchase of an article or item.

In the Philippines, it is pretty easy to sign-up for a credit card if you have been regularly employed for at least a year and received sufficient income. If you are employed, you would experience getting called up by a credit card agent offering application for a card. In some cases, you'd even be surprised to receive on the mail a credit card even if you have not even applied for one. Now those are special instances and usually happen to people who already previous credit card history.

Now, if you are still unemployed but would like to enjoy the convenience of cashless transactions, some banks or credit card companies offer credit cards with a tie-up deposit. This deposit will serve as a holdout amount, which you cannot withdraw while your card is still active. You may check with your bank if they have this facility.

For starters, a good credit history with an existing card will make you a prime target for credit card application agents. These overwilling agents do it for a fee of course. Most credit card companies in the country or banks offer a lot of freebies for a single approved application and these agents get these if your application is coursed through them.

For one credit card agents are almost anywhere one can imagine, in the malls, department store, grocery store, in the banks, online, and even over the phone. But beware and make sure you transact with a legitimate agent by cross-checking, or calling back the number the agent calls you with, or by calling the bank or credit card company. There are scammers out there out to get your money or even applying a card under your name.

Processing will most likely take two weeks or up to a month, with some taking longer. Together with your application, you will be required to submit proof of income, proof of identification (usually company or government I.D.), a proof of billing, and sometimes previous credit card statements (paid up, of course) and some photos.

Your application will be evaluated and if either approved or not, you will most likely get a letter telling you so. In case your application did not make the cut, you will be told to reapply again after six (6) months. Now, if your application is approved, more often than not, the bank or credit card company will inform you by phone and them by mail, and most of the time, with the card already enclosed in the mail. If this happens, the first thing you need to do is sign the space at the back of your new credit card. This is very important to make sure no scrupulous individual will get any idea of using and signing a card that is not his.

The credit limit given to you will most likely depend on your monthly salary or annual income, and sometimes on your other existing card's credit limit. It really depends on the card issuer which of these factors he would like to consider. Despite this, most card issuers will raise your credit limit each year if you've had good payment history.

After signing the card, you will see further instruction included in the mail as well as the terms and conditions of the use of such card. Make sure you read the fine print, the terms and conditions, the charges, interests and other minute details. This will ebe helpful later on and it is better to be well-informed beforehand than regret you actions later on because you had been ignorant of the card's terms of use.

Then, that's when you need to activate the card by calling a hotline or customer service number included in the same mail provided by the bank. After activation, you may start using your card usually a day after. You may start using it in your online transactions but before you do this, make sure that a site is safe and secure. Your card issuer will most likely provide you with basic procedures and precautionary measures to ensure safety while using your credit card in online transactions. Finally, you may apply for online access to your credit card account to ensure you are updated with your cash balances or available balances in real time to ensure up-to-date payment and statements on your part.