I will be going through the application process, practical tips and some things to keep in mind.
For this post, here's how you can apply for your very first credit card here in the Philippines:
Step one. Do you really need it?
Almost all banks here in the Philippines offer debit cards with Mastercard/Visa chips so technically they would serve almost the same purpose as a credit card. However, if you'd wish to have a credit card for some financial flexibility and all the rewards it could offer, it would be something you can consider. Consider and weigh in all the benefits and the risks before you proceed.
Step two. Look for the best credit card for you.
Cards from different banks in terms of rewards, annual fee, interest rates, reliability, etc. If this is your very first card, I would recommend starting with a card that has the least fees like the Citibank Simplicity card. It has no annual fees, no late fees but it has no rewards either. It would be something great to start with.
It is worth knowing that credit cards have levels that is paralleled with income or savings brackets so you should consider this as well. This explains why those with platinum cards tend to flex them often.
You can have two or three options in case you don't get approved on your first option but only apply for one at each time.
Step three. Prepare your documents.
Once you have chosen your ideal card, check the website for the complete list of documents. Usually, this would be two government-issued identification documents, proof of address (can be utilities or phone bills), certificate of employment with stated income, payslips for the last three months etc.
It is easier to get approved if you are employed and have been with a company for at least three months. If not, you can submit proof of income of a business that is under your name or perhaps just have a substantial amount in your savings account in the bank that you are applying for.
Step four. Submit your application.
You can submit your documents and application form via agents - you can easily spot some in the shopping malls or you can visit the branch. I would highly suggest applying online since it is easier and faster - banks usually have impossibly long lines for customer service. Documents via online application are usually submitted via email.
Depending on the bank, you will receive (or not) an email acknowledging receipt of your application.
Step five. Wait for approval.
The bank then has to verify your documents and your profile. Since this is your first time applying, you will most likely have zero credit score to evaluate so you will be evaluated according to your savings and/or your income.
Approval can take up to 14 business days and can be either via phone or email communication.
Your application may get denied if you have no consistent banking activity or you applied for a card that is above your income bracket. As I have mentioned, credit card can vary according to the annual or monthly income requirement. Another reason would be if the bank finds you have a pre-existing loans that they will conclude that you will not be able to sustain credit card payments.
Step six. Wait for your card.
If you are approved, your card will be mailed at your doorstep. For BPI, I believe they have an option to pick up at a branch nearest you. This could take up to one month or more of waiting . You have to present a valid ID to receive your card.
Step seven. Activate your card.
Your card will have a sticker that has instructions on how to activate. To be sure, make sure you activate your card using the mobile number that you have registered in your application. This could take up to three business days. Wait for the activation notification before you use your card.
In my case, when I recently activated a card from BPI, I did not receive a notification and it has been more than three banking days. I just used it to buy a Php 10 load from Lazada to check if it works. Lol.
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