Were you aware that there exist two categories of credit cards? Essentially, they are identical plastic cards that can be utilized to make purchases. However, Why Getting a Secured Credit Card is a Good Choice? the discrepancy lies in the fact that a secured credit card necessitates a collateral deposit, which can be claimed by the bank in the event of a default. Conversely, an unsecured credit card does not require any deposit.
My first credit card story
I began my career as a Radio Frequency engineer at a telecommunications company in 2015. Despite my low salary, I was very mindful of my finances and kept track of all my expenses down to the last penny. While many of my colleagues were hesitant to get a credit card, I decided to get one anyway.
A Beginners Guide in Budge
It’s understandable why they were hesitant. Many of us associate credit cards with accumulating debt and being financially burdened.
However, it’s important to realize that not all debt is bad and a credit card can be a valuable tool if used responsibly. One of the reasons I wanted to obtain a credit card was to establish a positive credit history, which could benefit me in the future if I ever needed a larger loan.
Additionally, a credit card can be used for larger purchases like a car, home, or business expansion, and even to start a business. In essence, I was considering the potential long-term advantages of having a credit card.
BPI Express Credit Card
Perhaps you have been declined multiple times for a regular credit card, and if you are reading this, it is likely that you can relate to my experience. There is no need to feel ashamed about it.
In my case, I too faced several rejections, and it may have been because of my income, which was only slightly above Php 180,000 per year. Your profession, company, and tenure can also affect the outcome of your credit card application.
But in situations like this, a secured credit card can be a viable alternative. Unlike a conventional credit card, it is automatically approved by the issuing bank, and most banks offer this option. In my case, I chose to go with BPI since I was already a customer of theirs.
Their secured credit card is called the BPI Express Credit Card. To acquire the card, I opened a bank book account and deposited Php 10,000, which was held for 6 months to a year. My credit limit was 90% of the hold-out deposit, which was Php 9,000.
It was a wonderful experience to finally have access to a credit card, even if the limit was small. My goal was to use it for my regular monthly expenses, and at that time, the limit was more than sufficient for my needs.
Converting BPI Express Credit Card to BPI Blue Mastercard
I opted to switch from a secured credit card to a BPI Blue Mastercard after a year, and the process was effortless. I simply contacted the BPI hotline to make the request, and within a few weeks, I received my new credit card.
Obtaining a secured credit card could serve as a stepping stone towards acquiring an unsecured one.
BPI Blue Mastercard to BPI Gold Mastercard
After two years, I realized that I needed a credit card that would better suit my present lifestyle. My income has gone up, which now qualifies me to apply for the BPI Gold Mastercard. Obtaining it was just as easy as my previous card conversion – I simply dialed the hotline and received my new card after two weeks.
However, things were different in the past as it was challenging for me to obtain a credit card. But now, I have been able to demonstrate my creditworthiness to my card issuer, which allows me to easily upgrade my card or even apply for new cards from other banks.
Get a Citi Credit Card: No Annual Fee For Life
“If you don’t feel comfortable with an unsecured card, you can explore the option of applying for a Citi credit card. This option comes with no annual fees for the lifetime of the card and also includes a welcome gift valued at Php 5,000.”