Credit card hacks

The Credit Card Hack That Will Get You Approved by Banks

Applying for a credit card is a bit difficult for those who can’t comply with bank requirements. Credit card companies have a long list of eligibility requirements for credit card applications. You will need to fulfill certain criteria and conditions for your application to be approved. In the Philippines, most providers require a minimum income of ₱180,000 per year and much higher compensation for those who do not have an existing credit card. This is one of the main reasons why many don’t get approved for a credit card.

Non-eligibility reasons may also include the following:

  • Bad credit profile
    There is a slim chance for people to get approved for a new credit card if they have a bad credit profile. This happens when they have incurred loans in the past and opted not to settle their balances. Banks have a way of checking credit profiles and with the help of credit scores, applicants’ credit-worthiness is evaluated.
  • Unemployment status
    Banks will check your ability to pay, thus the need for a salary slip to make sure you have a stable monthly income. Failure to present such a document and other papers to prove your income may curtail your chances of becoming a credit card holder.
  • Liabilities and expenses
    Through personal documents like bank and salary statements, credit card providers can check if you can cover your debts or your liabilities are too big to be paid through your monthly earnings. Existing loans and other forms of borrowing are culprits of credit card approval.

All these and a lot more can be causes of application decline. However, you still must check this credit card hack that has paved the way for some people to get approved by the banks regardless of non-eligibility reasons they have set.

You might not be aware of it but banks offer credit cards for those who open any type of accounts with them. You may choose a savings account, time deposit account or a checking account. Make sure that you have maintained the daily average balance for the entire duration of your account. It doesn’t matter how much it contains. The amount of balances becomes a basis of your credit limit but does not necessarily affect approval or decline of your credit card application.

How secured credit cards work

Secured credit cards help you build credit while allowing you to spend responsibly. Secured credit card users are asked to make a deposit and maintain the required balance which could not be withdrawn until all credit card balances are paid off. The deposited amount then serves as a collateral furnished to the credit card provider. Over time, banks evaluate your usage and may convert the card into an unsecured facility which allows you to spend within your credit limit.

BPI, BDO, RCBC, Union Bank, and Security Bank are just a few of the many providers of secured credit cards in the country. They make sure that this type of facility also comes with perks like ordinary credit cards.

Perks of secured credit cards

Here are a few things you can enjoy when you apply for secured credit cards:

  • Some banks offer a waived annual fee for the first year. You can also get a chance to waive the same fee on the succeeding years depending on your usage and repayment history.
  • You will earn rewards just like any other cards. You can get points when you dine, shop or book tickets using your card. Rewards can be redeemed in many ways depending on current promotions by the provider
  • The application does not require other documents like salary or employment certificate. Secured credit cards usually let you have 90% of your deposit as your credit limit.
  • No credit background checks. Your deposit becomes your collateral for the credits incurred so there is no need for banks to evaluate your creditworthiness.

Being declined for any financial product like credit cards does not mean the end of the world for those suffering from a bad credit profile. Aside from settling your debts, you can rebuild your report through a slow yet rewarding process. Start your rewarding financial journey by comparing secured credit cards with GoBear and rebuild your credit profile now!