Getting a credit card is, for some people, the golden ticket towards being able to afford more expensive properties such as houses or cars. While the majority of individuals use them to have the purchasing power even without cash, what first timers should know is that credit cards can be your key towards better financial status. Or financial doom, if you are irresponsible enough.
For first-time applicants, the allure of credit cards seems to be undeniable: how can you resist the temptation of having the ability to spend the money you don’t have. However, there’s more to credit cards than just swiping and paying the balance later. Want to avoid the common mistakes new credit card owners commit? Here are some guidelines that will aid first time credit card applicants.
Gather every possible requirement you can get
Applying for a credit card in the Philippines is a rigorous process; after all, banks will entrust you with the power to make loans in an instant. Applicants with existing credit lines can skip the process as they’ve already been through that before. For first time applicants, you must meet the following criteria:
You must be:
• At least 21 years of age or older
• A resident of the Philippines with a valid Philippine billing address
You must have:
• An annual income that meets the requirements of your chosen credit card
• A postpaid landline or a postpaid mobile phone under your account
• A Tax Identification Number (TIN) and SSS/GSIS No.
• Photocopy of any two (2) valid IDs with photo and signature
• Unified multi-purpose ID (UMID)
• SSS ID
• TIN ID Card
• Driver’s License
• Company ID
• Proof of income
If Employed, you are required to submit any two (2) of the following:
• Latest Income tax return (ITR) with BIR stamp
• W2 (BIR Form 2316)
• Latest payslip (at least within the last 3 months)
• Original Certificate of Employment
For self-employed applicants:
• Latest Audited Financial Statement (AFS) with BIR stamp
• Latest Income Tax Return (ITR) duly stamped as received by the BIR
• Photocopy of your most recent credit card billing statement from other banks (if any)
When you have all the necessary requirements to apply for a credit card, you can simply go to eCompareMo.com, sign up for a free account, and make your credit card application much more convenient and faster.
Choose the best credit card type for you
When shopping for a credit card, you might want to look at the perks and other extra features that allow you to maximize your credit card use. Some of the most frequent credit card types are the following:
• Cashback cards (rebates)
• Travel cards (miles)
• Frequent flyer (hotel and airline upgrades)
• Merchant cards (discounts, rebates)
• Lifestyle (redeemable points, discounts)
• Automotive (roadside assistance, gas rebates)
Build up your savings account
Having a savings account under your name can greatly increase your chance of getting your application approved. Aside from having the ability to keep a portion of your regular income, it also shows that you are financially responsible and willing to stave off unnecessary spending and other expenses.