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馃挸 How I got a Credit Card as a Student Philippines | Credit Cards for Beginners | BDO Visa Classic - YouTube
Channel: Nicole Alba
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fellow friends brentbaum i have achieved
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an important milestone in my
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early adulting journey i got my first
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credit card
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before we start some context no i'm
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currently 20 years old and i'm still a
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student
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i'm not employed which means that i
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don't have a stable source of income but
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now
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i have this shiny new sexy bdo credit
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card
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[Music]
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yo what's up friends welcome back to
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this week's video if you're new here
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what's up my name is nicole and i make
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weekly videos on personal finance
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investing self-development and other fun
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and interesting stuff
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so i've been wanting to get a credit
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card for so long i've been watching so
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many videos about credit card churning
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hacking the reward system i was so ready
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to earn miles and start flying for free
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having a credit card makes you feel like
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such an adult no like you feel so much
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power coming from this small
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plastic card anyway this is not going to
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be a complete credit card 101 video
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i'll probably make a more comprehensive
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video for credit cards in the future
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because i still need to take the time to
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learn about it because i'm also new to
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the credit card game
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but for this video there are a few
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things i want to talk about number one
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why did i get a credit card so a lot of
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people seem to be scared of credit cards
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like credit cards are evil aren't they
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dangerous
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why would you do that next why did i get
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this specific card so this is a bdo visa
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classic
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why did i apply for this one and then i
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want to talk about my experience in
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applying for this card
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so what were the requirements i needed
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to submit what forms did i need to fill
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out
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essentially what i did to get this and
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then i'm going to talk about some of my
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thoughts
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some tips that i can share if ever
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you're planning to apply for your first
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credit card as well
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also if you're already thinking about
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applying for cards you can sign up with
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the links in my description
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to apply for a citibank credit card just
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for transparency's sake i'm a citibank
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affiliate which means that i get a
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commission if ever you successfully
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apply
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through the links in my description
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alright i have four main reasons on why
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i applied for a credit card
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first the points so i like the idea of
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getting something back for free
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when you spend whether that's free
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flights free shopping credits gift
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certificates
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exciting stuff like that because usually
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credit cards when you spend with the
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credit card
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you also accumulate points and the
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points you accumulate you're able to
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convert
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into a reward unfortunately this
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specific credit card because it's just a
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basic tier
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it doesn't really maximize the rewards
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per person spent but we'll talk more
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about that later
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the second reason online transactions
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are more secure when you use a credit
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card
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as opposed to a debit card i pay for a
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lot of stuff online and that can be
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really dangerous if you're using a debit
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card that's linked to your bank account
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if ever a hacker gets access to your
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debit card details they have direct
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access to all of the funds in your bank
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account
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if ever they use your debit card details
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to pay for something that's worth 10
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000 that's 10 000 pesos automatically
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subtracted from your bank account
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if they want they can even drain the
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whole bank account very risky
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so i had this experience where my debit
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card was compromised and the hacker took
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a lot of my savings away i was so
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shocked
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but yeah thankfully i was able to file a
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dispute to get my funds back
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but then filing disputes can be a bit
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more difficult for debit cards because
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the money is taken directly from your
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account
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what's great with credit cards is that
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they're not directly linked to your bank
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account
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so this is not the best analogy but to
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explain how credit cards work
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let's say for example you're going to a
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restaurant so when you go to a
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restaurant right you order
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food and then the waiter lists it down
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cooks it for you serves it to you
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and then at the end of the meal you get
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your bill right and then you have to pay
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for that bill
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that's the same thing with credit cards
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you essentially like swipe swipe and pay
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for stuff
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and then at the end of the month you'll
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receive a bill for all of the
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transactions you did during that month
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and you have to pay that off yet so
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credit cards are safer because they're
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not directly linked to your bank account
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if ever the hacker gets access to your
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credit card details you can essentially
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file the dispute tell your bank that's
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not something i did
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i'm not gonna pay for that next i got a
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credit card so i can start building my
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credit history
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so eventually you might need to take out
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the loan from the bank so maybe
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so that you can take out a home loan car
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loan stuff like that
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even if you have the cash flow to pay
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for that loan it will be a bit difficult
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for you to get approved for that loan
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if you don't have an existing credit
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history credit history is just a way for
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the bank to assess whether or not they
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should lend you money
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so let's say you're gonna lend money to
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your friends would you be willing to
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lend money to a friend who has a history
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of not paying back their utang
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nobody would be more willing to lend
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your money to friends who pay you back
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after a week
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chamber you want to make sure that the
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friends that you lend money to will pay
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you back
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that's what a credit history does so
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yeah bad credit history friend
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good credit history friend so when you
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have a credit card and you diligently
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pay it in full every single month you
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never miss a payment
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that shows the bank that you're
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trustworthy that you're actually
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responsible with your loans
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so they're more likely to approve you
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for a loan so yeah i got a credit card
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so i can start building my credit
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history as early as now
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and then credit cards are essentially
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super powered cash
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so credit cards can be good or bad
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depending on how you use it
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i see credit cards as super powered cash
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meaning i will treat it like
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cash i will only spend on this card what
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i have money to pay for in cash
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so this is not like extra cash no way i
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need to have the money to pay for this
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and also with credit cards i can
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leverage my cash
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that essentially means like time value
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of money right so if i have stuff i need
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to pay with this card
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i can wait for it if it's at the end of
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the month i'll put it in a higher
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savings account first let it earn a bit
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more interest
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before i use that cash to pay for my
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bill all right
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so why this card this is a video visa
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classic credit card
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why did i apply for this specific card
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so this is a very basic card it
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essentially gives you one point
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per 50 peso spin so this is actually not
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a regular credit card yet because if i
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were to apply for a regular credit card
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i know that i will get rejected because
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i'm still a student and i have no stable
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source of income
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it's a bit hard to apply for credit
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cards especially if it's your first
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credit card
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because you don't have an established
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credit history yet you don't have a lot
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of choices
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so this one this is a secured credit
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card which means that i needed to
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deposit a whole lot amount
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to be able to get this card secured
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credit cards are more or less
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guaranteed approval because you put up
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collateral if ever you're not able to
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pay for your credit card bill and then
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they take
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the hold out amount so do i so i have a
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bdo security credit card
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other banks do this we'll talk about
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that more in a bit but essentially the
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way it works that right you're going to
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deposit 15
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000 pesos in a time deposit that's your
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hold up amount right you're not allowed
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to touch that
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so secured credit cards usually give you
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80 to 90 percent of the amount that you
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deposited
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as your credit limit 90 of that is
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thirteen thousand five hundred
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so your credit limit what you're allowed
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to spend is thirteen thousand five
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hundred
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so this basic credit card is just for me
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to start building my credit history
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no fancy reward yet but in the future
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maybe six to twelve months
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once i'm able to establish a good credit
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history paying it back
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always in full in time then maybe it
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will be easier for me to apply for other
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credit cards
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or a request to release my holdout
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amount and also even though this is a
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secured credit card it still has an
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annual fee
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so the annual fee for this one is 1500
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or 125 pesos per month
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for most mastermind you're able to waive
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the annual fees as long as you spend a
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certain amount
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i find out next year i'll update you
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guys right
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so now let's talk about what i had to go
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through in order to get this majestic
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card
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my bank is bdo so i apply that video
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some banks don't really promote their
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secured credit cards like bdo
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you're probably more familiar with the
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bpi express start or security bank
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secured credit card
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i essentially went to the branch i
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walked in and then i told the teller yo
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i want a secured credit card i asked if
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i was allowed to get a secured credit
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card because i was only 20
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and then on the website it says you need
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to be at least 21 years old
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the teller told me that you're allowed
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as long as you're above 18 years old and
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then you have the minimum
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holdout deposit so they asked me for two
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ids i gave my driver's license and my
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tin card
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and they made me fill up some forms and
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then sign this deed of assignment which
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i had to go and
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authorize for myself which was quite a
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hassle
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and then i brought a proof of address
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and then the money i was going to
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deposit
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and then this is the funny part i
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applied last july
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july and i only received this card
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december
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i have no idea why it took so long
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because usually it's supposed to be a
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fast approval
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because you already deposited the
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required amount i had to complain
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several times to their hotline and they
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kept delaying it
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so i had to complain to the bsp and they
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said
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they investigated and it was the fault
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of a certain agent
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i don't know whatever so annoying i had
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to follow up so many times
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ah hopefully the same thing doesn't
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happen to you guys that was just
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like one big hassle but whatever i
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finally have my card woohoo
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now for some of my thoughts so bdo is
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not the only bank that offers secured
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credit cards
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when doing my research i've actually
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found six so that's security
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bar bdo aub rcbc
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bpi and metrobam so depending on the
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bank the minimum holdout deposit could
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be
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different amounts and the credit limit
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can also differ
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i would probably recommend applying at
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another bank just because of my
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experience
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and frankly the rewards program of video
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is not that nice
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so if ever you're thinking of applying
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for a secured credit card i would
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probably recommend another bank maybe
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you can look at bpi their blue card
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so their required deposit is ten
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thousand pesos if it's an atm passbook
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and fifty thousand pesos if it's in the
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time deposit and they also give you
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ninety percent of your holdout amount
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the bpi real thrills reward system seems
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more exciting than what bdo offers and
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you can earn one point per 35 pesos
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spend
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i think for secured credit cards the
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focus really isn't the reward system
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that much it's really just
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for you to be able to start building
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your credit that's the focus and then in
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the future you can
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level up in your credit card reward
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tiers and get
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even more exclusive rewards but yeah
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after talking about all of these things
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i want to emphasize that you need to be
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responsible
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if you're going to get a credit card a
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lot of people fall into the trap of
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accumulating large amounts of credit
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card debt
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just because they don't know how to use
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the card wisely or they don't know how
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to properly control their spending
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i'm already confident that i'm going to
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use this credit card wisely
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because i've been tracking all of my
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expenses my entire finance system
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for the past two years credit cards are
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just a tool
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so as long as you're able to pay your
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credit card bill
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in time in full every single month then
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i don't think there's going to be any
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problem
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we have two featured comments for this
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week the first one is from alfonso
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alfonso says that he has started doing
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financial planning and gathering data on
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how investment savings accounts
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funds all of those things would work
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he's currently 17 years old still a
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minor
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not working yet but he's consistently
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giving himself time
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to explore the financial world out there
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so solid
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that's so cool thank you guys thank you
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so much alfonso
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it's really cool that you're still young
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and for all of my younger viewers i get
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a lot of comments
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who are underage asking me on how to
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start investing because they really want
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to start
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i guess the best investment you can make
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now is investing in yourself first
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learn about all of these things first
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you're still young you still have a lot
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of time
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don't fomo into it it's important to
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build that solid financial foundation in
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your mind as well
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once you're able to start investing now
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you can do it responsibly properly
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then we have aj silent follower not used
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to leaving comments
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hope you can feature my comment someday
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yeah
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english expired now thank you so much aj
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so
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shout out to all my silent viewers even
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though you don't leave a comment i still
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appreciate the time you take to watch my
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videos but yeah you guys can follow me
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on instagram i post stories there almost
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every day
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like the facebook page join the discord
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server thank you guys so much for
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watching i hope you guys
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enjoyed and learned something new about
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credit cards you guys can apply for a
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citibank credit card down in the
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description below but with all that said
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thank you guys so much for watching i'll
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see you guys next week
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bye i'm still a student i what
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a complete credit card 101 video i'll
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probably make
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more
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they want credit cards too
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you
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