Infographic: Secured Credit Card

As a follow up to my post, I came across an infographic from iMoney way back from March 2015 which I believe is still relevant at the moment except for Metrobank's Save and Swipe program and Unionbank's secured credit card. I believe those two are not being advertise publicly and you have to visit a local branch or at least open or have a savings account with them. Worry not, here are two more banks where you can apply for a secured credit card. 

Security Bank's Fast Track Programme

Required Deposit for Hold-Out: Php 15,000

Limit: 80% of the hold-out amount

Conversion: No

More information here. 

Asia United Bank (AUB) Secured Credit Card

Required Deposit for Hold-Out: Php 25,000

Limit: 80% of the hold-out amount

Conversion: No

More information here.

BPI - More information here.
RCBC - More information here.

What is a Secured Credit Card?

Though it has only been more than two years since I have acquired my first ever credit card, I've noticed lately that some people from work approach me asking for tips on how to avail of one. Being from a BPO company, I'm very much familiar on how hard it is to apply for one especially if you  have less than 2 years of tenure on your company or your salary doesn't meet the minimum requirements. I've had my share of rejection and one thing that I'm sure of is it's easier when starting with a secured credit card.  With this, here are some things I knew about secured credit cards.

What's a secured credit card?

A secured credit card is just like a regular credit card, but the main difference is that you're required to make a deposit which will be held against its credit limit. Your credit limit will usually be a percentage of your security deposit usually 80-90% or it may be the same as your deposit. Many banks place your deposit into a savings account where it stays until you close your account, upgrade to a regular credit card or default on your credit card balance which in this case, it would be used to pay for the unpaid balance. A secured credit card is often recommended for those who are constantly being declined a regular credit card, those who haven't yet established a  good credit or financil history or those who have damaged credit.

Secured credit cards vs. regular credit cards

Aside from the held deposit, secured credit cards are like most other types of credit cards. Every swipe that you make on a secured credit card reduce your available credit and you're required to make at least a monthly minimum payment toward your credit card balance. If your card issuer has a grace period, you can avoid paying finance charges by paying your balance in full before your next statement. Late payments and over-the-limit transactions are penalized with a fee just like any regular credit cards.

Even though your credit limit is secured, you're still required to make at least minimum payments on your balance every month. Not doing so may taint your credit score, and if you default from paying by at least three months depending on the card issuer, your account will be closed and your held deposit will cover the unpaid balance.

Why start with a secured credit card? 
Regular credit cards have stricter credit qualifications like a minimum tenure in a company or a minimim gross monthly or annual salary which make it hard for most to be approved for these cards. Personally, I know few people who have trouble getting approved for regular credit card that they have settled for a secured one.  for a secured credit card much easier than a regular credit card. After a few months of  proving that they are financially responsible, the regular credit card came in succesion, even without them applying for it.

Converting to Regular Credit Card
Most card issuers review your account after a certain amount of time, most likely 12 months at the time you will be charged an annual fee. Of the 4 banks who offer secured credit cards (BPI, RCBC, AUB and Security Bank) though I also heard that Metrobank, Eastwest and BDO offer their clients a version of their secured card, and based on my personal experience, only BPI allows conversion without reapplying. Even if your secured credit card issuer doesn't upgrade you to an regular credit card, you may qualify for one with another credit card issuer after six to twelve months if your secured credit card has reported your credit history to one of the major credit bureaus.

On my next post, I will try to consolidate my experience with 2 of the three secured credit card issuers.  Will do.

Cheers!

Secured Credit Cards - BPI Express Start No More.

3 months of no posts. Sorry, I have been busy with Netflix lately and Game of Thrones season 7 really sucked that I didn't post my spoilers (will blog about that later though. :)

Anyway, looking back at my posts here and here, I'm surprised to know that it has been more than a year since I availed of this program from BPI.

My BPI secured credit card started February 2016. With a hold out amount of 100k, I was given a gold mastercard, which at that time only sole purpose is to secure myself a 3 year multiple entry visa to South Korea. Fast forward 1 year and 8 months later, I'm glad to blog about that it is already a regular credit card! Yey!

It happened September 2017. Ideally, you should wait for at least a year to have your hold amount be released and your card to be reviewed for retention. I believe a year is enough for BPI to review your credit card usage and payment history for them to deem you worthy of a regular credit card. Through unavoidable circumstances, I waited another 6 months to have my funds be released.

Here's my profile:

- BPO employee for 5 years at the time of request
- 50% credit limit monthly usage
- Full and on time payment history
- Zero balance at the time of request

My hang ups:

- Nature of employment - there's always this stigma of BPO employees not having a stable work tenure
- Annual salary - I would not disclose but I believe I do not meet the requirements of a gold card
- Horror stories I've read in forums on how hard it is to have your funds be released

Anyway, if I remember it accurately, I applied to have my funds be released and the card be retained last September 4, 2017. I went to my branch of account and brought along a valid ID, my latest ITR, three months payslip, three months statements of account from a non BPI credit card of at least 1 year, and a proof of billing. Yes, I am ready! LOL. A representative from my branch of account, Annapolis (which is a very lovely branch, and not a busy one) took all of the documents I have brought except for the proof of billing (which, later on would be a bad idea). I was given a form to fill up and sign, and... that's it. Very easy no? I was then told to wait at least a month although I conditioned my self to two months because of the horror stories.

Fast forward a week later, I was called by the representative to submit a proof of billing. Wait, didn't I brought it along and was told that it wasn't needed? It took every bit of restraint and willpower I have not to lash out after hearing this. Since I was at their mercy, I just politely informed them that I will forward it to them the same day. At that time, I also received a letter dated September 8 from their credit department asking for the same document.I just took it as a positive thing that at least my request is being processed swiftly.

Fast forward another week later, I received another call from my branch of account happily informing me that my request for my funds be released and my card to be retained was approved! Yey! A bit of the downside, my credit limit was lowered to 55k but it's a no biggie for me. I'm just glad that a bank, particularly BPI, trusted me to handle a regular credit card.

See, no horror story. What a relief. I guess it varies from one branch to another. I'm just glad that my experience with BPI Express Start was a smooth one, and hopefully this post may help others in one way of another. :)

eBay 101 - 3 Things I Learned From Online Selling

Image from ebayph twitter page

I've been an occasional eBay PH seller since 2012. Nothing grand, just some collectibles which I decided to part with, and some buy and sell stuff.  My friends are usually surprised whenever they learn that I trade on eBay PH. All they know is OLX, though I also trade there from time to time. With that, here are three things I usually tell my friends when the subject of online selling via eBay comes up. This also applies to OLX, as they are both online trading sites.

1. Check out the nearest couriers around your area. It would be difficult for sellers to ship items if there's no available within your vicinity. Familiarize yourself with shipping cost, locally and internationally. Couriers like Air21, JRS Express, 2GO, Xend have lower rates compared to LBC, which I believe is the most popular courier in the country. I personally use Xend in shipping my items since I can always drop it off a 7-11 convenience store near my workplace. Having my items picked up at home usually does not work for me since my work schedule shifts every month or so. For international shipping, expect to pay a lot. I didn't and my first international sale was my last for the time being.

2. Before deciding to sell online, make sure you have that extra time to check your page at least 3 times a week and be prepared for haggling. learn to say "No, thank you". You can make your mobile number known to interested buyers for faster transactions. Be ready to respond to inquiries the soonest possible time, and not take it personally should the buyer decided not to push through despite several communication exchange. Believe me, Pinoys are great in haggling.

3. Decide how on you'd like to be paid. I personally choose to accept payments via bank deposit so I can have the cash immediately, and there's no fees to be paid. This is common on OLX and eBay PH. However, on other eBay sites especially the main US site, PayPal is king. And with the fees PayPal charges on every payment received, it best to be aware of the fees you will be paying so you can come up with an item price that won't get you out of pocket.

To sign up for an eBay account:

1. Visit www.ebay.ph and register
2. Fill up the needed information
3. You will be asked to confirm either thru your email or via text messaging.

Good luck!

Manila Bankers Life Insurance: Scam or Not?

Image from MBLI's website

Last Wednesday, I received a landline call. Since I am no longer expecting character investigation calls through my landline number because of some credit card applications, I'm a bit surprised that someone would call via landline. Telemarketers are ok especially if I know the product like Citibank and PLDT but what I experienced was new to me. Here's how the conversation went:

Manila Bankers Life Insurance (MBLI): Good morning! May I speak with Mr. XXX? 

Me: Speaking. Who is this?

MBLI: Hi Mr. XXX! This is YYY from Manila Bankers Life Insurance and I’m calling you today to happily inform you that in celebration of MBLI’s anniversary, you won yourself 4 free rewards! You were recommended by one of our partner banks: BPI, BDO, Metrobank, RCBC, Security Bank, EastWest Bank, PNB, LandBank etc.

Me: ...

MBLI: Since our records show that you have a good credit standing, you were chosen to receive 4 rewards that includes an educational scholarship at a computer school,  free life insurance, as well as health and wellness GCs. I'd be happy to explain them one by one.

Me: I'm already a graduate and have a life insurance (even though I don't really have one). 

MBLI: No worries Sir! The educational scholarship can be given to anyone and our life insurance is free. We just need to confirm your credit standing via your ATM or credit card. 

Me: Sorry but I'm not willing to give my credit card or ATM details over the phone. Thank you. 

MBLI: It would be here at our office Sir. 

Me: No thanks. I'm not really interested. Bye!

I don't know if its the representative's voice and manner of communicating (heavy accent, script-dependent and all) but I'm very cautious with these kinds of calls. So I turned to my best friend, Google and made a quick search of Manila Bankers Life Insurance and was not really surprised to see the numerous negative comments and allegations of fraud:

These posts dates back 2016 but I also saw some way back 2013. Most are negative comments. I did see one positive post about it but the comments were bombarded with negative ones. From what I read, MBLI persuades people with offers of an educational scholarships and other gift certificates. When one claim their prize from Manila Bankers Life Insurance office in Ayala, they will be subjected to a product presentation of the company's insurance products and then pressured to avail of the products.

However, Manila Bankers Life Insurance seems to be a legit insurance company. They have their own official website and is listed among accredited life insurance companies by the Insurance Commssion. If Manila Bankers Life Insurance is not one of those fly-by-night institution, why the negative comments?

I strongly believe it’s because of their misleading marketing and sales practices.

Manila Bankers Life Insurance utilizes deception (for a lack of better term)  to secure a potential client’s attention. The modus is to use the scholarship and gift certificates as a bait to bring people to their office and once there, hard sell the product to the unsuspecting audience.

The aggressive selling of their life insurance product borders on pressure and  intimidation. Manila Bankers Life Insurance might say in defense that the final decision is still with the insured, but with such tactics, very few would be able to say no, and even if they were able to, it would be too late as representatives would already have a hold on their financial details. And with Filipino's  inherent meekness and non-confrontational nature plus limited knowledge, this would be easy as pie.

Based on the numerous comments against Manila Bankers Life Insurance on social media, the agents are smooth talkers who somehow manage to convince the insured to hand over their credit card or ATM for what they claim is a simple verification process.

So if it’s not a scam, would I recommend going to Manila Bankers Life Insurance to claim your supposed prizes? If you have an ample amount of time, or you want to your test your saying "No" skills or have something to write home about, then go right ahead. Otherwise, I honestly think it’s a waste of time. Even if MBLI is a legitimate insurance company, I wouldn’t want to deal with an entity that uses shady methods just to close a sale. I have friends who are into insurance sales and I see how they work hard to secure clients, explain the ins and outs of a policy, how knowledgeable they are with their company and product. And they are okay even if potential clients says no.  The least thing I can get for free is lunch. :)

Always remember, don’t let Manila Bankers Life Insurance or any other entity near your credit, debit or ATM cards. If you need to be rude, then do so and save yourself from the headache of unwanted and overpriced charges, and never ever sign anything you haven’t thoroughly read first. Be vigilant.

Bank Codes in the Philippines

In line with my blog post about adding a bank account to your PayPal account, you need to enter a bank code. as with PayPal Philippines, to complete your PayPal withdrawal, you will need to enter the name of your bank, your bank account number and the corresponding 9-digit bank code, which identifies your bank.

Here's a summary of the different bank codes in the Philippines. 

BANK NAME	9 digit bank code
ALLIED BANKING CORP	010320013
AUSTRALIA NEW ZEALAND	010700015
ASIA UNITED BANK	011020011
BANGKO SENTRAL NG PILIPINAS	010030015
BANGKOK BANK	010670019
BANK OF AMERICA	010120019
BANK OF CHINA	011140014
BANK OF TOKYO	010460012
BANCO DE ORO (& EPCIB)	010530667
BANK OF COMMERCE	010440016
BANK OF THE PHIL ISLANDS	010040018
CHINA BANKING CORP	010100013
CHINA TRUST COMML BANK	010690015
CITIBANK N.A.	010070017
DEVT BANK OF THE PHILS	010590018
DEUTSCHE BANK	010650013
EAST WEST BANK	010620014
EXPORT & INDUSTRY BANK	010860010
FUJI BANK	010640010
HONGKONG AND SHANGHAI BANK	010060014
INTL COMML BANK OF CHINA	010560019
INTL EXCHANGE BANK	010680012
JP MORGAN CHASE BANK	010720011
KOREA EXCHANGE BANK	010710018
INTL NEDERLAND BANK	010660016
LAND BANK OF THE PHILS	010350025
MAYBANK OF THE PHILS	010220016
METROPOLITAN BANK & TRUST CO	010269996
PHIL BANK OF COMMUNICATION	010110016
PHIL TRUST COMPANY	010090039
PHIL NATIONAL BANK	010080010
PRUDENTIAL BANK	010150018
PHIL VETERANS BANK	010330016
RIZAL COMML BANKING CORP	010280014
SECURITY BANK & TRUST CO	010140015
STANDARD CHARTERED BANK	010050011
UNITED COCONUT PLANTERS BANK	010299995
UNION BANK OF THE PHILS	010419995
UNITED OVERSEAS BANK	010270189

Cheers!

How to Add a Bank Account to your PayPal account

I'm an occasional online seller, and in times of sales, I usually prefer cash on collection or meet ups as it is more reliable and no fees are charged. However, venturing on eBay's international selling, I have no choice but to add PayPal as my accepted payment method. When a buyer pays, I would need to withdraw it to my bank account. At this point, I found another use for my Eastwest account as I've read that no fees are charged when withdrawing funds. Will confirm that when I have a balance to withdraw. Unionbank is another option but it charges php10 per ATM withdrawal. Every peso counts. Haha!  What I know is that it would be PayPal who would charge Php50 for each withdrawal instances. So, here's my mini guide on adding your bank account details on your PayPal account.

1. Log in to your PayPal account
2. Click on the "Wallet"link on top of the page.

3. Click on the "Add bank account"link.

3. Enter your bank details, then click the "Save"button. Make sure you provide correct and similar details as to your PayPal details to avoid that Php250 returned fees.

4. Congratulations! You have added your bank account. Easy peasy!

5. You should also receive a confirmation email to your registered email address.

I've read somewhere that PayPal sends a confirmation code to your bank account whenever you add one. I didn't receive any and was not asked to check my online account for a PayPal code. I guess it's because I already have a credit card on file. Or maybe I will  be once I try withdrawing funds. For now, I wait,

Cheers!

Credit Card Promo - Citi Bankwide Member Get Member Program

If PNB holds a special place in my heart for being the first credit card issuer to grant me a regular credit card, Citibank also holds another place for a different reason.

Citibank, being an international bank, is one, if not the most recognizable brand in terms of credit card brands. Ask anyone for the top three credit card issuer in the country, I'm 100% sure that Citibank would be on the list. This is why aside from having a gold credit card from BDO or BPI for my 3 year multiple entry to Korea hopes, I tried my luck in getting a Citibank credit card.

And I tried. And tried. And yet still tried.

Yes, I tried for at least 8 times before getting approved. I have had one planner, an umbrella and 6 tubs of Chef Tony's popcorn before getting their elusive "Yes".

Now that they have this referral program until March 31, 2017, I hope yours will be a bit easier.

See full terms and conditions here.

Cheers!

Applying for an Eastwest Bank Basic Savings Account

Image from eastwestbanker.com

First, let me admit that the main reason why I opened an Eastwest Bank basic savings account is because of the hopes that I would be asked to apply for their credit card. I've tried applying for an Eastwest credit since last year both via online, direct to bank, or though an agent, and was declined four times already. This time, armed with some knowledge I gathered from the PinoyExchange community, I tried my luck. True enough, during the mandatory Know-Your-Customer (KYC) phase and while filling up their application form, I was asked if I wanted to apply for a credit card. Mission accomplished. Getting approved or not would be in another blog post.

At the same time, I had the need to open a savings account solely for the purpose of maintaining money I make for a small money-making business I am in with an officemate. I would need a savings account with no or minimum maintaining balance, zero ATM withdrawal fee, zero annual fee and easy accessibility within my home and workplace. With these reasons, the choices I have came down to Eastwest and Unionbank. Since I already have the GetGo Debit Card with an annual fee of Php500 and Php10 ATM withdrawal fee, plus the fact that a lime colored debit card is nice to look at, Eastwest took the cake.

Here's a rundown of its features:

Though I have no use of this information at the moment, one would be delighted to know that Eastwest Bank is affiliated with PayPal, and you can have your PayPal earnings be withdrawn to your account with no additional charge.

My Experience

REQUIREMENTS:

1. 2 Valid IDs
2. Billing Statement
3. Initial deposit of Php100
4. Recent photo

I initially opted to open an account on a branch that's nearby my workplace.  However, they were kind of strict when it comes to having complete requirements. I only have one valid ID with me at that time and have no recent ID photo. Good thing the branch that's near my residence address allowed me try apply without a recent photo. It's also a plus factor that the branch in P. Tuazon is more accomodating than the one in Eastwood. That's one important aspect of banking I am looking on a bank. Application only took about 30-40 minutes depending on how fast you fill up the application form. I was then told to wait 5-7 banking days for the card to be claimed.

Fastforward. After only 4 banking days, a representative from the P.Tuazon branch called up my home landline and informed that my card is ready for pick up. That was fast indeed. I just hope that they also approve my credit card application, but for now, it does not matter. I'll just wait for a no annual fee for life promo should I get declined. I'm more excited in using the lime colored card at the moment. Hehe.

Cheers!

Credit Cards - PNB Essentials Mastercard - One Year Later

I remember it as though it only happened yesterday. It was a hot sunny afternoon. Though it was late February and the molten ice from our northern neighbors should have made the weather a slightly chilly one, there was I sweating profusely under the mighty sun. Armed with the requirements I've taken note from their website, I entered Philippine National Bank (PNB) P. Tuazon branch. I'm not exactly sure if their branch is a new one, but it looks like it, especially when compared to the Ali Mall or the Cubao-Harvard branches.

The staff were friendly and accommodating. Even though it was nearly lunch, one of their tellers assisted me with my application. I was initially asked if I had an account with them. I told them that I didn't and asked if it was necessary. Good thing it was not but it could really help with my application since this will be my first credit card if ever. I just told them I would be opening one should I get approved so I can use their online portal.

The process only took 30 minutes of filling up the application form. I was told it could take a month or so for the entire process and I should really see to it that I answer their verification call for me to get approved.

A week later, I received their call and was relieved that I was free to answer it. Basic questions were asked and it took only about 5 minutes. I didn't hear again from them after that. Amidst the tension I faced with applying for a secured credit card, I was totally surprised that around March 7, 2016, a card arrived at the office though I was not there to receive it personally. It was an Essentials MasterCard with a Php20,000 limit. Very low indeed, but at least it's a regular one. My first ever. To top it up, I then learned that it have free annual fee for life. I feel so lucky.

Six months later, I requested for a credit limit increase and was granted one from Php 20,000 to Php 50,000. 10 months after, I requested for a Travel Club Platinum Mastercard which is also free for life. I was initially declined but them got approved after casually mentioning it to a CS on one of my contacts with them. That's a different story for now. Hehe.

Card usage wise, it has the perks of other credit cards: installment plans, balance transfer, transaction conversion; all of which I've used at a certain time. If there's a bad thing that I could think of, it is their overseas usage limit. Though my balance is sufficient enough and a travel advice was given, a CS told me that the card would be blocked after a certain number of swipes. It happened to me when I was in HongKong and then another time in South Korea. I didn't dare use it when I was in Japan so I'll never know.  Otherwise, all was well.

Recently, February 22, 2017, I received the below email. I guess it was February 22 when I got approved and got the card 2 weeks later. Though I'm pretty sure that this is s system generated email, I was touched, and would have been touched more if it came with an automatic credit limit increase. Just kidding. Seriously, two cards from them with no annual fee for life is reason enough for me to stay with this bank.

Image by PNB

Thank you PNB for the trust. I'm really looking forward for a stronger banking relationship with you for the years to come.

Credit Card Promo - Metrobank's Red Ribbon and Greenwich Treats

One of the perks of having a credit card is getting something out of spending. Granted, it is not technically free as you have to reach a certain amount to be eligible for a certain treat. Nonetheless, if it's for something that you regularly spend on like bills or groceries, then why not?

Though this is my first time posting about these kind of promos, I've actually taken advantage of past credit card promotions like BPI's Starbucks (my favorite) and Jollibee treats (3x) and Metrobank's recently ended McDonald's treats (2x). These are what some of the peeps at PinoyExhange call as "Pantawid Gutom Program"  (Quick hunger fix). Haha! I'm thinking of posting more promotions like these for those who are too lazy to read their emails or those who are on auto delete mode. Plus, it's one of my lame excuses to come up with a blog post. Haha!

Image by Metrobank

A quick run through:

Eligible Cards: All Metrobank credit cards except Metrobank ON Internet Mastercard and Metrobank Dollar Mastercard. Not applicable to YAZZ prepaid card and Metrobank debit and prepaid cards.

Promo Period: February 22, 2017 to May 15, 2017

Redemption Period: February 22, 2017 to July 14, 2017

Promo: FREE Red Ribbon and Greenwich treats when you spend anywhere with your Metrobank credit card.

Click here for the complete promo mechanics.

Credit Card Tips

It has been a year since I had my first credit card. It all started with with a secured old credit card from BPI, in my desire to avail of their Imagine your Korea promotion wherein Gold and higher credit card holders have the chance of being granted 3-5 years multiple entry to South Korea. 

Fast forward. Along with a 3 year multiple entry visa to South Korea, came multiple credit cards. As Spiderman would put it, with multiple credits card comes multiple responsibilities. It was fun at first. I'm a Starbucks card collector and the idea of collecting multiple credit cards for the different designs came to mind. Further, the idea of being entrusted with a credit limit that I can use anytime at my whims boosts my self esteem. 

A credit card can be a valuable tool if you know how to use it properly.  Below are some tips I've read from various sites, adding more from my own experiences. 

1. Your credit card available limit is not your cash. Do not treat it as an extension of your buying power. Your buying power is your cash limit. Once you have your card swiped, consider the same amount of your cash to be no longer yours.

2. Pay the monthly due on time and in full. This is to avoid paying for interest. Paying just the minimum amount off your credit card balance each month will not only extend the time you are in debt, it will also significantly increase the interest you pay over that time.

3. Never miss a payment. If the above point can't be avoided, it is vital to make a payment of at least the minimum amount by the due date.

 4. Go for credit cards that offer free annual fee for life. If this cannot be avoided, ask for your annual fee to be waived; some credit card companies waive annual fees upon request or upon meeting certain conditions.

5. On installment:
- avail only if installment price is the same as the cash price (0% interest)
- avail only if you can afford to pay the full amount on the purchase date
- take the longest payment scheme possible but only if the last payment date is before your annual fee will be charged. This way, you get to be in a better position when asking your annual fee to be waived. 

5. Unless there's a minimum amount or purchase required, every peso counts. Use your card on each and every purchase that allows you to, provided you follow the previous points. 

6. Check the perks. RCBC Bankard offers unli 0% installments. Unionbank's Getgo Credit Card directly earns you Getgo points which you can use to redeem Cebu Pacific flights. Citibank Rewards card offers accelerated points rewarding system.  This is especially useful for those who have more than one credit card provider. On any given transaction, use the one that will give you better perks. 

7. If you have just enough money to make ends meet and without an emergency fund but with regular salary, get at least 2 cards, but make sure to follow the above advice. Having 2 or more cards gives you some sort of emergency budget. 

8. Treat your credit card information as confidential (Really, it is.)

The Good:

1. You get to keep your money at the bank for a longer period. This gives you:
- insignifcantly higher interest
- available cash in case of emergency

2. You get to receive discounts and freebies without paying for interest.

3. You get to fall in line less often on ATMs

4. In comparison to bringing cash, when you lose your cash, you lose your cash. When you lose your card, you lose a piece of plastic. Just make sure that you report it at the soonest possible time. 

The Bad:

1. You have the tendency to use it on purchases which you will not avail if you are on a cash basis.

2. You don't have the available budget but think you can swipe knowing your payday is drawing near. 

3. You see it as something to give you a better financial image among your friends.

4. You cannot say "No" to pressures of treating your friends even if you do not have budget for such.

Opening a PNB Deposit Account

Now that I have a Philippine National Bank (PNB) Essentials Mastercard, it's inevitable that I would have to pay for the things that  I swiped. I just received my first statement and the hours it took for me to withdraw my funds from my BDO account to paying via PNB bank deposit had me decided to open one so I could enroll it on their online banking system so I could pay my bills online. With it, instead of my funds coming from BDO, I would directly deposit my payments to PNB.

Like any other banks, one cannot open  a PNB bank account without bringing the necessary requirements. With that, one must secure them first before going to any PNB branch, so that your bank account application will be approved. It is also important to select first what PNB branch will you going to open an account. For me it is important that a branch is near my residence or place of work. Luckily, there are two PNB branches near where I lived and I chose to open one that is near a shopping mall.

Requirements in Opening a PNB deposit account

1.) At least two (2) valid id's.

A combination of 1 photo-bearing ID and 1 non photo-bearing ID or a combination of 2 photo-bearing ID's. Bringing both 2 non photo-bearing ID's might not be accepted.

2.) Initial deposit.

It ranges from Php3,000 to Php10,000 depending on the type of account you want to open. However,  I opted  for the TAP Mastercard which requires no initial deposit or maintaining balance but still offers an interest rate. You just have to pay a minimal amount of Php15 every month as an account fee. This is okay for me as I would only use the account for paying my PNB Essentials Mastercard bills.

3.)  2 pcs 1" x 1" or 2" x 2" personal picture. Luckily I had a recent one tucked under the innards of my bag at that time.

4.) Billing statement. I didn't know about this one until I was asked by the bank representative. I told them that all of my utility bills are enrolled under electronic statements of account and have managed to provide a screenshot of some. This is a bit weird for me because as most are encouraged to apply for an online SOA, PNB are still asking for a hard copy. Good thing the bank representative accepted my situation and allowed my application to push through.

I was then asked to complete and sign several forms, which I submit along with photocopy of my IDs and billing statement. The process took 45 minutes to an hour (including the waiting time) and I was told to be back after 10 business days to pick up my card.

It's waiting game again :)

Secured Credit Card - Getting My RCBC Instacard

Update: Funds are now released! Yey!


Finally! I got my RCBC Instacard! After deciding to apply for one last February 22, and having my qualms about it not being able to be converted into a regular credit card, my Instacard arrived at my office address yesterday, March 30. That gives about a month or so from application to approval to delivery. Not bad.

What is Instacard?

Instacard is a Secured Credit Card (SCC) from RCBC. SCC means you have to place a time deposit for a year and you’ll be automatically given a RCBC credit card of your choice, subject to time deposit amount range.

In my case, I opted to place a Php10,000 hold out amount. This means that the card I would be getting will have a credit limit of Php10,000 as RCBC offer 100% credit limit unlike BPI's version of it (Express Start) which only offers 80% - 90% of your hold amount. The good thing with BPI though, is that you can have it converted to a regular credit card after a year of usage (subject for approval of course). This information actually the reason why I also opted to open one with BPI.

Anyway, of all the cards that I applied for last February (I applied for eight, 2 were SCCs, got declined by 3, got approved by 1, while the remaining two have yet to do their credit investigation), this was the one that got delivered the latest. I've already got my PNB Essentials Mastercard, and my BPI Gold Mastercard (secured) so receiving this card is some sort of anticlimax for me. I have yet to decide whether to use this regularly or just keep it for emergency use. Since this is by far, the one which has the lowest credit limit, this I suppose would be the least used card.

'Til next update.

Secured Credit Cards - My Journey to BPI Express Start

Aside from applying for RCBC's Instacard, I also applied for BPI's version of a secured credit card - BPI's Express Start.

Unlike RCBC's Instacard, BPI's Express Start can actually convert your secured credit card into a regular credit card after establishing yourself with good credit standing for a year or so.
Although your credit limit is only 80%-90% of your holdout amount versus RCBC's 100%, the prospect of having it converted into a regular credit card seals the deal for me.

So last February 25, I applied for a Blue Mastercard secured credit card. Initially I opted to place Php25,000 as my hold out amount. This amount would have my credit limit to Php20,000 or above. However, after reading something on the internet (which I would tell in the near future) made me change my mind and instead, I opted to place Php100,000 and request for a Gold Mastercard secured credit card.

Come March 10, 2016 (3 days after I received my first regular credit card from PNB), I received a text from BPI that my BPI Express Credit Card application was approved and the card should be delivered in 3-5 days time. I was not overly excited since I already have one regular credit card from PNB but nevertheless was happy as I will have a gold secured credit card with a higher credit limit.

March 11, 2016 - I got another text from BPI that my new card is on its way and I should expect 10 working days to arrive. Well, it arrived the same day but I was not at the office to receive it. Luckily the messenger left it to the guard to whom I left an autorization letter. Good job, BPI! For now.

The thing is, I was really hoping for a gold one as it would serve a bigger purpose in the near future but when I checked my Express Online account, I was dismayed that BPI have only given a Blue Mastercard. I immediately went to the bank and asked why this was the case. Is this because I originally applied for a Blue Mastercard and when I decided to apply for a Gold, the representative who assisted me just whitemarked the check on the Blue tickbox and then check the Gold tickbox?  Not even the manager know why I was given a Blue Mastercard considering the hold out amount I placed. She guessed that in order for me to have the Gold Mastercard, I may have to increase my hold out amount to Php150,000. I told her that I initially read somewhere that Php50,000 was enough as a holdout amount for a gold card. She then escalated my case to her superiors and inform me that she would call me for an update.

March 12, 2016 - I decided to call 89-100 just to confirm what the minimum hold out for a Gold Mastercard should be. The representative I talked to informed me that a Php75,000 credit limit is enough for a gold Mastercard. Since I have a Php90,000 limit, he advised me to visit my branch of account and request for a conversion.

March 15, 2016 - Coming from a graveyard shift, I visited my branch of account and asked for a credit card conversion form, filled it up and was told to wait 3-5 business days to be processed.

Dang.

It's a waiting game again for now.

Credit Cards - My First From PNB

Image from punepropertyblog.com

Good things do come when you least expect it.

After being declined by BDO and BPI, and resorting to secured credit cards offered by RCBC and BPI, I got my first credit card from PNB last March 7, 2016. It was a Blue Essentials Mastercard with a credit limit of Php20,000. Small, I know, but at least it's a regular credit card, not that secured ones are less desirable.

I was really surpised. I didn't receive any call or text saying that I was approved. I applied around the same time I applied for RCBC Instacard last Feruary 19. I believe I got the mandatory credit investigation call a week after and haven't heard from them since. I was not really hoping to be approved since I was declined by two banks already but Come March 7, I got a text from a friend that a package containing a credit card arrived at the office. I was expecting that it was my RCBC Instacard so I told him to open and place it in my locker. I asked if it was from RCBC and got suprised that it was from PNB!

I couldn't contain my joy and I'm very thankful to PNB for giving me the chance to avail of their credit card services. Thank you PNB! I promise not to miss any payment. LOL.

But wait, there's more! I called their hotline at 8189818 to activate it and happened to ask for my annual fee, I was told that it is FREE FOR LIFE! How great is that? My first credit card and no annual fee for life. I'm loving PNB every seconds. :)

Image from pnbcards.com.ph

52 Week Money Challenge - Game On!

I've known this challenge since two years ago but it is just now that I'm really going for it. I know  it has been 10 weeks from January but better late than never, right?

For those who have been living under a rock and who is not familiar of it, the premise of the 52 Weeks Money Challenge is simple: start the first week saving Php 50, and then  add the same amount every week for 52 weeks. By week 52, you will have Php 68,900. Tempting isn't?

Fifty pesos seems easy enough to keep weekly, but there will come a week (generally by Week 40 onwards), that you would have to save at least Php 2,000 a week. This may seem a burden to some so instead of having Php50 as a base amount, you can try saving Php 20, which will yield a decent Php 27,560 at the end of the year. If you want, a thirty peso-base will yield Php 41,340, while a Php 40 base will give you Php 55,120.

I'm personally aiming for the Php50 base. I even bought myself a cute coin bank (I couldn't find a large jar) from Clipper. I'm still thinking of what to do with the amount I will save, maybe a trip or two, who knows?  Wish me luck!

I'm gonna be happy indeed at the end of the year. LOL.

Secured Credit Cards - Applying for BPI's Express Start

Image from www.bpicards.com/

After I applied for an Instacard and having reservations about their program, I decided to apply yet again on another secured credit card program this time with BPI's Express Start. The thing is, after learning that RCBC's Instacard do not up upgrade your secured credit card into a regular credit even after several months of being a good payer, I've decided to go to a similar program that rewards its clients for being a responsible card user.

Having an ATM Savings account in BPI Family Savings Bank, I decided to give it a try yesterday. Before doing so, I've read several blogs and noted that it is generally better than RCBC's Instacard program. Armed with my ID's and an additional deposit amount, I went BPI Family Savings Bank P. Tuazon branch (the one in front of Ali Mall). I initially went to one of their cash deposit ATMs and placed Php 13,000 so my hold out amount would be Php25,000. I then went to one of their representatives  and asked about the BPI Express Start program. The representative, in fairness, knew about the program but the way she handled or assisted me lacks the "eagerness to assist" attitude. I don't know if it because it nearly lunch time when I got there and there's so many forms to fill up which could delay her break, or the fact that I am just applying for a secured credit card with a low hold out amount meaning I'm not one of the elite customers who should be prioritized.

Being a customer support representative the past 3 years and 8 months, I understand the effect of having a great customer service which I didn't feel when I entered the place. Don't get me wrong, I am not expecting a grand welcome with red carpet and marquee and the like. Hehe. A simple smile, or a simple gesture like appreciating my interest in applying, and then asking me to wait while they finish the one ahead of me, would do. Sadly, nothing.

So when the representative asked me to photocopy my ID's (indeed I read in a blog that some BPI branches do not have photocopying machines or they just don't let you use them), I didn't return and instead went to look for another branch. Good thing I found one in Annapolis, across the Gateway Mall, Aurora Boulevard exit. I believe the branch was recently opened or renovated because everything just looks brand new.

I entered and I was instantly greeted with a warm welcome by a representative and was asked what I would like to do. Nice. I informed her of my intention to apply for a secured credit card was quickly assisted. She first informed me of how it works and handed me several forms to fill up. Since I already have an ATM Savings account with one of their branches, I was told that I no longer need to open one with them.

Just like applying for an Instacard, the process was smooth and quick, I chose to have Php 25,000 hold on my account and applied for a Blue Mastercard.

Here are the requirements:

1. Must be at least 18 years old
2. Must have a business or residence contact number
3. Completely filled out and signed Express Start Application Form (Available at the branch)
4. Completely filled out and signed Deed of Assignment (Available at  the branch)

It is important to note though that unlike Instacard whose credit limit is 100% of your hold out,  Applicants for BPI's Express Start may only  get a credit limit of up to 90% of his hold-out deposit amount. I also read that it is also rounded to the nearest five so a Php 10,000 hold out may have PHP 9,000 limit if you are lucky and at the worst, Php5,000. To increase it, you just increase your hold out amount.

After filling up the necessary forms, I was told to wait for 5-10 banking days for the application to be processed.

Again, I will wait.

Secured Credit Cards - Testing My Faith in RCBC's Instacard

Image from dreamstime.com

Just last February 22 (Monday) I applied for RCBC's Instacard. Basically, it was a smooth experience. I went to the bank, deposited Php10,000, filled up some forms, and was asked to wait for two weeks. That's what I'm doing at the moment. While waiting, I Googled more about RCBC Instacard program and that's when I knew about long processing time, late delivery of the card, being unable to withdraw the hold amount, and similar horror stories.

I personally do not care about those. For me, as long as you are are using the card and paying for it responsibly, there should not be  a problem getting your hold amount back. What made me think twice about my application was when I learned that one cannot convert an Instacard secured credit card into a regular credit card, Sad, no? Even after several months of being a good payer will not grant you a regular one. For me, this is deal breaker since of course, every one needs some sort of upgrade at a certain point, right?

Still thinking on what to do now. :(

Secured Credit Card - Applying for RCBC Instacard

After being rejected by BDO for a VISA credit card application (despite the years I've had my savings account from them and the Php100k plus money in my account), and the tiring application process I have to endure for credit card applications (think, requirements, payslips, ITR's, filling up application forms) for three other banks aside from BDO, and the time it will take for an approval, I finally decided to settle in applying for a secured credit card.

What is a SECURED CREDIT CARD?
A secured credit card is similar to that of a regular credit card, the only difference from a regular one is that a secured credit card needs a hold-out deposit/money/collateral. You will be able to enjoy what regular credit card users get - installment schemes, discounts, reward points, etc.

In my case, I decided to apply for RCBC's Instacard program since their website recommend doing so when I was automatically declined from having their own regular credit card. I've had the same experience when applying online for HSBC and Citibank since I do not have an account with them much lest a principal holder of a regular credit card from other banks but only RCBC recommended applying for a secured credit card upon rejection for a regular card. Here's a screenshot:

This hurts. Haha!

You will then be redirected to this page when clicking  on the link to learn more:

Enticing. :)

100% Approval sounds really really enticing, doesn't it? I then went to the nearest branch I know which is near Farmer's Plaza to apply for one bringing with me a couple of valid IDs, ITR, payslips, and a certificate of employment so I was surprised when what they asked was a copy of a proof of billing which luckily I have one with (I intend to pay the bills but somehow ended up applying for a secured credit card.). They also asked for two valid ID's and a picture. I didn't have a picture of me but they said it was fine. For the official requirements, here a screenshot from their page:

I was then asked to fill up an application form,and sign a Deed of Assignment. I started a time deposit of Php10,000 which I intend to raise within the next few weeks to increase my credit limit. The process was surprisingly quick. I arrived at the bank at around 3:30 PM and was finished 30 minutes earlier. I was then told that the card should arrive within two weeks to my preferred mailing address.

For now, I wait.