How Freelancers in the Philippines Can Get a Credit Card

How Freelancers in the Philippines Can Get a Credit Card

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Credit Card for Freelancers in the Philippines | Moneymax “How can I apply for a credit card if I’m working as a freelancer?” For anyone who has started a work-from-home career, concerns like getting a credit card for freelancers always come to mind. Credit cards are useful for self-employed Filipinos just as they are for employees. Having a plastic card allows freelancers to verify PayPal account for receiving payments online. It can be used to buy software programs, web hosting services, and other work tools. Of course, it comes in handy when shopping online, paying bills, or booking flights. While a Visa/Mastercard debit card or prepaid card can get those things done, it’s better to use a credit card for certain transactions. For example, you can pay for big purchases like laptops or appliances in monthly installments with no interest. More importantly, a credit card can be a life-saver during a financial emergency when you have no access to cash. Unfortunately, it’s challenging to get a credit card for freelancers in the Philippines. To qualify for a credit card, you have to own a registered business with a profitable operation for at least one to two years. To prove that, you’re required to submit an income tax return (ITR), business registration papers, and financial statements. Beginning freelancers typically don’t have these documents on hand. But don’t lose hope—you can still get a credit card even if you don’t have stable employment. Here are different ways for Filipino freelancers to get approved for a credit card. Apply for a Secured Credit Card How to Get Credit Card for Freelancers – Apply for a Secured Credit Card As a freelancer, you have a higher chance of getting approved for a secured credit card than a regular one. How Secured Credit Cards Work Although they have the same features with regular cards, secured credit cards have a different set of requirements. To get a secured card, you need to open a savings, checking, or time deposit account with a bank and deposit a certain amount, which the bank will place on hold as your deposit guarantee (also called hold-out deposit). This means you’re not allowed to withdraw your money until you cancel your card and have fully settled your credit card account balance. Also, in case you fail to pay your credit card debt, the bank can recover the money by taking your hold-out deposit. Your deposit will also be the basis for your credit card limit, which is typically 80% to 90% of the hold-out amount. For example, if your hold-out deposit is PHP 10,000, your credit limit will be PHP 8,000 to PHP 9,000, depending on the bank. Banks allow secured credit cardholders to increase their credit limit by depositing an additional amount into their account and requesting the amount to be placed on hold. Because the hold-out deposit serves as collateral, secured credit cards are generally 100% approved (except for cases like an applicant having a delinquent bank account). […]

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