Frequently Asked Questions About Credit Cards

What is a credit card?

A credit card is use in paying for products or services without using the money in your wallet, but you will be still paying for your purchases when your credit card’s bill comes. The slogan “Buy Now, Pay Later” can be associated with a credit card. The great part about having a credit card is that you have the capability to buy things anywhere, locally and internationally, as long as your credit card is recognized by the seller.

Where can you get a credit card?

You can get a credit card from most banks here in the Philippines and other companies that issues credit cards to their clients. Unfortunately, you cannot just go to a bank and get your credit card instantly. There are some requirements that the bank would ask you. if you want to know the requirements, just keep reading.

Who can get a credit card?

Any person who is 21 years old and above, has a job or business or any stable source of income and has a good credit score can apply for a credit card. Just make sure that you can also pass all the following requirements below.

What are the requirements when applying for a credit card?

So before you go to the bank, you must first have or pass these requirements that you would be needing for you to apply for a credit card:

  • Must be 21 years old or above, and a Philippine resident
  • Must be employed and/or practicing his/her profession, or is self-employed or has his/her business, that is operational for at least 2 years
  • Must have an annual of income of 120,000 pesos or more (the annual income requirements varies from banks and credit card companies, the said amount is the one mostly required by most banks)
  • Must present proof of income (For Employed: Contract of Employment, Latest Payslips or Latest Income Tax Return, For Self-employed: Latest Audited Financial Statement or Latest Income Tax Return)
  • Must present at least one valid ID  (Passport, Driver’s License,Voter’s ID, PRC ID, Philhealth card, GSIS e-card, SSS ID, NBI clearance, Police clearance, Senior Citizen ID, OWWA ID, Seaman’s Book, OFW ID and other government IDs)
  • Must have a residential landline number
  • Also bring your Tax Identification Number (TIN), Social Security Service number (SSS) or Government Service Insurance System number (GSIS) or your Credit Card number/s from other banks (Some banks and credit card companies may request this from you)

After securing the all the requirements that you need, it’s time for you to head off to the bank and choose what kind or type of credit card you would be getting.

  • For everyday use -When you will be using it on your daily expenses, it would be best to choose a credit card that has long grace periods and low-interest rates
  • For online shopping– When you are inclined in doing online shopping, choose the credit card that protects its consumers from internet fraud really well
  • For purchasing expensive items– When you are going to buy cars or expensive watches or jewelry, then you should get the card that has the lowest interest available and that also offers installment plans
  • For travelling– If you travel often, then getting a travelling credit card would be best for you. You can also take advantage of the free services the bank may offer you when you accumulate enough points.
READ ALSO:  The Pros and Cons of Credit Cards

Don’t worry these are not all the types of credit card that you may choose from, there are a lots of them that can satisfy your needs and expectations.

But before you get your credit card, make sure you have answered the…

5 questions you must ask yourself before getting a credit card

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Mark Holland

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