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A Back to Basics Guide To Earn Your First Credit Card


Credit cards in the country are usually seen as a luxury because ideally it has a lot of benefits such as hassle-free money transactions, fast solutions in financial emergencies, instant gratification from online shopping, easy online booking payments and a lot more. It’s indeed alluring!

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If you’ve been wanting to get your wallets with those swiping plastic money, yet you still wonder how? Here’s a back to basics guide to help you come into terms in earning your first credit card.
1)Determine the best type of credit card you can apply for.
So, it’s your first time to apply for a credit card and you feel overwhelmed with the hundreds of credit card products that you’ve read from different banking institutions. Well, to explain to you, there are a variety of credit cards that suits a particular financial need. From the variety of credit cards, there are three major types to know. 

  • Regular -This is the best bet for first time credit owners. 
  • Premium-For those with higher income and credit usage.
  • Rebate-Majority of their purchase are through credit card.

Which among the types of credit card you best fall into?
2) Research the pitfalls and the perks of your credit card.
Doing research should be your utmost priority in applying for a credit card. You can’t just randomly choose one from the hundreds on your application form. Ask a credit card officer to assess you and your ability to pay the balance of your credit card. Determine your lifestyle and see whether you can be responsible enough to own a credit card. Read anything under the sun about the credit card and get a hold of the pitfalls so you can avoid them and learn its perks so you can use them wisely.

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3)  Know your credit limit.
A credit limit, in layman’s term means the amount of money you can borrow from your card. In the definition of finance, a credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit.
Basically, the credit card is like your financial personality. You don’t expect to have a high credit limit as a first-timer. Remember that a credit card is your loan or “utang” in Filipino. For a first-timer, the credit limit depends upon the capability of the owner to pay back his/her balance. Factors that would affect your credit limit are your age, your job and your income.

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3)  Back your application with a good credit history.
Banks will want to know if you’re a good credit risk. A good credit risk determines whether you are responsible enough to pay off your bills. It is mostly determined through financial evidences such as Income Tax Return (ITR), financial bank statements, etc. So show proof of your good credit history with all the necessary documents you’ve been asked to prepare.
4) Double check all your requirements.
Before submitting your requirements, you have to check them twice to keep a hassle-free application. Keep a checklist so you won’t get lost. It’s very important to have a folder to have documents submitted crease-free.
5) Submit your application and hope for the best.
You have to know that not all first-time credit card applicants get approved and not all credit card owners get an easy second chance for another credit card as well. This all boils down to “responsibility.” Responsibility has been the key factor that leads to this rejection.
It is important to know that credit cards give a purchasing power that its owner can handle. Be prepared to use the cards wisely and follow the rules to be a good credit card owner, because with great power comes great responsibility.
All the best with that credit card application!

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Yes, a credit card is your emergency bank in hand, but if you don’t have one yet, you can always turn into PawnHerofor extra cash. Just visit the website to learn more. Also, do try and download the PawnHero app for a  quick and easy experience. Plus, if you’d want to go online shopping, check out Marketplace.ph, where authentic and pre-loved branded items meet bargain prices. The online shopping store accepts cash on delivery and other payment methods of your convenience.

Do follow PawnHero Philippines and Marketplace by PawnHero on Facebook for updates, games and cash rewards.


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