First ever Credit Card!

 First ever Credit Card!

We need to celebrate my little win today! I am absolutely elated and thrilled to bear the good news of getting my first ever credit card from HSBC today! Yip yip hurray!

A story I could tell you was that I was always declined when I tried to apply for a credit card in the Philippines. Maybe it's because I got no credit history which makes me somehow regret not taking the chance back when a BDO teller offered a credit card when I was starting high school. What made me decline it is because of financial illiteracy and I was worried on how to pay it and thought of it as a trap (which could really be the case if you don't know how to handle your finances wisely).

Why do I need/or want a credit card you may wonder? It is because it is more safe to use your credit card rather than a debit card for purchasing or paying for things online. Stolen money from a debit card is less likely to be retrieved than from a credit card cause you can try to challenge it.

Some of the feedbacks that I came across was that to put 2k for at least 3 months in your account. And you have to be at least 3 months in your residence. Or wait for 6 months before applying or reapplying as it may take a toll on your credit score.

How did I do it?

First, I inquired in the bank where I opened my bank account because when I try to apply in the app, it shows an error. 

During the bank account creation, my cohorts and I were offered an overdraft. But because I do not know about it, I declined.  

And what happened was that the account that we have has a tag of "no lending" or limitation that we were not allowed to loan because we were at that time in a hospital accommodation (I think we were presumed to be high risk that's why). I updated my residence and information. She said that she will lift the limitations up and advised me to apply again online after 3 months (I did this almost 3 months).

I tried the free Experian statutory report which got delivered in the house I'm currently residing. It showed no report and I'm thinking that it may be because of the tagged account.

I downloaded Clear score app and the CreditKarma app which I found it more reliable.

Aside from that, I downloaded the Klarna app and bought some stuff which is payable in 3 installments. I found out later when browsing the CreditKarma that when you close the payment for Klarna, it is also shown in your credit report. So if you got some stuff (especially big ticket items to purchase), utilize Klarna. When you successfully pay it on time, there is a check tick on the month of it.

One thing that I also did was to leave at least 2000 GBP in my current account for almost 3 months. To tell you frankly, this was the hardest part as I'm thinking of the potential interest wastage as the current account do not accrue interest.

But anyway, I took the big leap this morning and was really nervous especially when the app prompted if I have a credit card history from the Philippines and opted for the no instead as I don't have it and it may potentially impact the decision. I was also reminded that there was a feedback that said that their cohorts who were not approved were those who don't have any credit card in the Philippines.

When I shared my experience to my friend, she said that it may be because there was a certain period and massive issue in time that HSBC was fucked up by Filipinos who were under student visa, took out a loan and then went back to the Philippines without ever paying them. And maybe that's why they are now very strict in screening those who they give credit to.