How to get a credit card for a foreignor in the Philippines

onefogarty wrote:

Hello there!

I have an excellent credit score in my own country, Canada.  However, here in the Philippines, I have yet to establish some kind of credit history as it were with my bank (BDO).  That said, I would assume that having some kind of decent credit history here in the Philippines will better position me to obtain loans for mortgages and so on?  Does anyone here know how I can get a credit card in the Philippines?  Should I offer the bank a security deposit, say around 50,000PHPs, to get me started?  I'm not sure how to go about this to be honest, so anyone "in-the-know" as it were please feel free to share any useful ideas. Thank you and stay safe always :-)

First thing I did when moving to the Philippines is open a dollar account ($2500 USD) in my stepsons name at BDO. I also opened a PHP account in my wifes name at BDO.

Sometime later BDO sent my stepson an unsolicited credit card at an interest rate of 25%.

If you have credit cards from Canada they are accepted in the Philippines, my US Bank Cards are. You may have to notify your bank in Canada and you might have to pay a 3% fee for using your cards here.

Thank you:)

onefogarty wrote:

Hello there!

I have an excellent credit score in my own country, Canada.  However, here in the Philippines, I have yet to establish some kind of credit history as it were with my bank (BDO).  That said, I would assume that having some kind of decent credit history here in the Philippines will better position me to obtain loans for mortgages and so on?  Does anyone here know how I can get a credit card in the Philippines?  Should I offer the bank a security deposit, say around 50,000PHPs, to get me started?  I'm not sure how to go about this to be honest, so anyone "in-the-know" as it were please feel free to share any useful ideas. Thank you and stay safe always :-)

I would suggest you go straight to the horses mouth, your bank manager for credit cards, we have 2 BDO credit cards issued to us even though we never asked for them and have never been activated, (the better half just advised me that they are issued after xyz transactions). We have from Oz, Westpac visa and Amex and here rarely used, Netflix and few minuscule things from Oz.  most transactions are cash, Gcash we use also, as for loans? At 5 to 6% interest here for secured loans While Canada around 2%, similar in Oz for home loans, the 3 to 4% difference adds up. If you have the assets in your home country you should secure extra funds there at a lower interest rate or pay cash.

OMO but if I had to borrow money in the Philippines I would work a few more years in my home country to secure a decent future.
While I don't know your circumstances/situation it seems ludicrous to me to borrow money from a bank (any bank) charging 3 or 4% more than the market rate in your home country. Go to a Condo seller here that will put the property in your name,,,,,,, seem to make it easy with their finance scheme,,,,,, 7, 8, 9, 10+%. Others can chime in here and will probably recommend to simply rent and lessen the pain.

Good luck onefogarty, Let us know how you fare.

Cheers, Steve.

I asked about this b4 with BPI, they said you can have a credit card if you want one and they explained that whatever credit card limit you applied e.g. P100k, they would freeze that amount in your current or savings account, seemed a bit pointless to me so I didn't get one.

I know what I will be doing is transferring my money into my fiancé/wife's bank account and just using her ATM! I also have a platinum Visa that is good there for international travel

FindlayMacD wrote:

I asked about this b4 with BPI, they said you can have a credit card if you want one and they explained that whatever credit card limit you applied for e.g. P100k, they would freeze that amount in your current or savings account, seemed a bit pointless to me so I didn't get one.

Welcome to the Philippines. We didn't ask for credit cards but delivered to our door 6 months after opening 2 new accounts here and closing our Manila accounts from 9 years ago, never a credit card from Manila branch. Apparently our unused credit cards have a PHP 10K limit, basic needs for a week or two, go figure. We all know the drill with credit cards.

Cheers, Steve.

prs94881 wrote:

I know what I will be doing is transferring my money into my fiancé/wife's bank account and just using her ATM! I also have a platinum Visa that is good there for international travel

ALL? Perhaps in dribs and drabs? We all have Black, Platinum and gold cards from our respective countries and don't forget to notify your travel plans with your bank or it suddenly becomes declined.
All our assets and bulk cash sit in my home country for obvious reasons.

Welcome to the forum, perhaps you could introduce yourself in the new member section.

Cheers, Steve.

bigpearl wrote:

I would suggest you go straight to the horses mouth, your bank manager for credit cards, we have 2 BDO credit cards issued to us even though we never asked for them and have never been activated, (the better half just advised me that they are issued after xyz transactions). We have from Oz, Westpac visa and Amex and here rarely used, Netflix and few minuscule things from Oz.  most transactions are cash, Gcash we use also, as for loans? At 5 to 6% interest here for secured loans While Canada around 2%, similar in Oz for home loans, the 3 to 4% difference adds up. If you have the assets in your home country you should secure extra funds there at a lower interest rate or pay cash.

OMO but if I had to borrow money in the Philippines I would work a few more years in my home country to secure a decent future.
While I don't know your circumstances/situation it seems ludicrous to me to borrow money from a bank (any bank) charging 3 or 4% more than the market rate in your home country. Go to a Condo seller here that will put the property in your name,,,,,,, seem to make it easy with their finance scheme,,,,,, 7, 8, 9, 10+%. Others can chime in here and will probably recommend to simply rent and lessen the pain.

Good luck onefogarty, Let us know how you fare.

Cheers, Steve.

I don't know how things work in Canada, Australia and the Philippines but in the states the bank managers (Citibank)  can do a credit application for a loan, but they have no influence with their credit card division. The credit card division is a separate entity. Borrowing rates (loans) and credit card rates is comparing Apples to Oranges in the States.

A note for others,  If you have inactivity on your card for a year you can be cancelled. One of my credit cards I had for 18 years was cancelled do to inactivity. I also had a second card from the same bank, so I now charge things on it and pay it off each month to keep it active. My reason for inactivity, I have two very very low interest cards, so I did not use the higher rate cards.

I have a good FICO score and the last time I applied for a card it was issued at prime rate plus 6%. I'm waiting for the other shoe to drop with all the printed money floating around, I expect interest rates to go up due to inflation, just a couple point rise will effect millions of credit card holders with big balances.

Why have expensive CREDIT cards,
why not DEBIT card = To use it, put an amount at the acount related to the card, then thats the limit NOT the credit.

(I have debit card in Sweden,
and we have one for business if we will need small amounts in ATM, but thats in Filipino name.
And a Swede have DEBIT card to support his planned wife.  He put in (monthly) the max amount she can get out, and he can stop it by just not add any money if she missbehave,)

coach53 wrote:

Why have expensive CREDIT cards,
why not DEBIT card = To use it, put an amount at the acount related to the card, then thats the limit NOT the credit.

(I have debit card in Sweden,
and we have one for business if we will need small amounts in ATM, but thats in Filipino name.
And a Swede have DEBIT card to support his planned wife.  He put in (monthly) the max amount she can get out, and he can stop it by just not add any money if she missbehave,)

Why are credit cards expensive?

Well certain credit cards have advantages over debit cards, especially when it comes to fraud. If a fraudsters gain access to your account debit account, Lots of luck trying to recover your money.

Giving a planned wife in the Philippines a debit card is asking for trouble.

Credit cards have advantages:

(1) Interest free days if paid in full by due date.
(2) You can get a charge back if unhappy with the purchased product or service.
(3) Extended warranties on products purchased.
(4) Rental car collision damage waiver.
(5) Safety: On online purchases.
(6) An emergency line of credit.
(7) Points, Points and more Points and Rebates, Rebates and more Rebates.
(8) Some new cards offer zero interest rates for balance transfers, sometimes up to 18 months.

You need to start out with a "secured" credit card......its up to you how much you want to secure....I deposited 250,000 in BPI.....50,000 was secured for my 1st credit card. you will be able to use your credit card up to 50,000.......ever month. BUT, make sure you pay it off COMPLETELY every month....for approx 1 year....THEN, with a good history of paying your credit card....you can apply for a "regular" credit card with a credit limit of 50,000 or more.......Paying your credit card off completely every month will prove that you are credit worthy............and maybe 2 years later, you can request an increase in your credit limit. Mie is up to 400,000 now...after 10 years. Good luck

Enzyte Bob wrote:

Why are credit cards expensive?

I ment if using it in a way so need to pay the interest - as many do.

Enzyte Bob wrote:

Giving a planned wife in the Philippines a debit card is asking for trouble.

Yes, but much better than giving her a credit card   

Enzyte Bob wrote:

(6) An emergency line of credit.

Yes. But there are much cheaper flexible credits than credit cards.
(I have had a check credit in decades with much lower interest (7.9 percent)   ((although not used since I "went all in" when I bought a stock for all money I could  raise back when there were cheap "western" stocks.)   

Enzyte Bob wrote:

(7) Points, Points and more Points and Rebates, Rebates and more Rebates.

Well. Some companies are idiots giving better deals to CREDITS than to ASSETS - OR they do it to FOOL people to pay high interest to them     
Many credit card users dont have the disciplin to only use the credit cards to get the benifits you talk about without paying high interest...

You're spot on! Thank you for saving me the time to explain my rationale

Gregorio2020 wrote:

You need to start out with a "secured" credit card......its up to you how much you want to secure....I deposited 250,000 in BPI.....50,000 was secured for my 1st credit card. you will be able to use your credit card up to 50,000..

So you "borrow" up to 50,000 from YOURSELF, so odd "credit" 

Onefog-I STRONGLY dont recommend you get a credit card here in the Philippines. Heres what you do:If you already have an account with BDO just ask them for an ATM "debit card" to go with your savings account. They should give you one anyway-if they dont just ask(BPI also provides that). They will walk outside the bank or in the foyer with you and help you activate the ATM card. I think you have to wait 24 hours to use it-not sure about that.I already did this 9 years ago so cant remember. You can withdraw 10k pesos per every 24 hrs or 200usd. I dont think you will need that much but if you are a big spender than go for it. Just go inside the bank if you need more than 10,000 pesos.I withdraw 10k pesos maybe once or twice a week and keep it hid in my apartment for cash emergencies maybe 2 thou  usd at one time. I just let the deposits for my soc sec go into my BPI account and then when I get a few thous up to 5k usd I will take it out in usd and exchange into pesos and deposit the pesos into my atm account. I only use my BPI atm account to pay my utility bills online  Cignal tv-PLDT for my landline and internet combo. That way I always have a few thous usd in my apartment in dollars or pesos or both for emergencies and exchange the usd into pesos as needed.Try to only keep 2-3K usd in pesos or usd at one time in the bank. If you die the bank will keep what you have or if youre married the wife gets it. If single like me I would have to have a family relative come to Philippines.Wont due that so what ever is in there the bank keeps and they can throw a party for all the employees-JOKE LANG!Actually credit cards is what has caused financial problems in the usa and around the world. I think the ATM debit card can also be used as a credit card but why do that? A little common sense helps out here.Every time you make a purchuse at the store or withdraw pesos just remember how much you have left in there as they auto take it out when you use the debit card. A little commn sense goes along ways.All 3 of my brothers have had problems with credit cards during their life. i have never owed anyone anything. Thats the way I prefer it.Good luck.

capricornrising wrote:

Onefog-I STRONGLY dont recommend you get a credit card here in the Philippines. Heres what you do:If you already have an account with BDO just ask them for an ATM "debit card" to go with your savings account. They should give you one anyway-if they dont just ask(BPI also provides that). They will walk outside the bank or in the foyer with you and help you activate the ATM card. I think you have to wait 24 hours to use it-not sure about that.I already did this 9 years ago so cant remember. You can withdraw 10k pesos per every 24 hrs or 200usd. I dont think you will need that much but if you are a big spender than go for it. Just go inside the bank if you need more than 10,000 pesos.I withdraw 10k pesos maybe once or twice a week and keep it hid in my apartment for cash emergencies maybe 2 thou  usd at one time. I just let the deposits for my soc sec go into my BPI account and then when I get a few thous up to 5k usd I will take it out in usd and exchange into pesos and deposit the pesos into my atm account. I only use my BPI atm account to pay my utility bills online  Cignal tv-PLDT for my landline and internet combo. That way I always have a few thous usd in my apartment in dollars or pesos or both for emergencies and exchange the usd into pesos as needed.Try to only keep 2-3K usd in pesos or usd at one time in the bank. If you die the bank will keep what you have or if youre married the wife gets it. If single like me I would have to have a family relative come to Philippines.Wont due that so what ever is in there the bank keeps and they can throw a party for all the employees-JOKE LANG!Actually credit cards is what has caused financial problems in the usa and around the world. I think the ATM debit card can also be used as a credit card but why do that? A little common sense helps out here.Every time you make a purchuse at the store or withdraw pesos just remember how much you have left in there as they auto take it out when you use the debit card. A little commn sense goes along ways.All 3 of my brothers have had problems with credit cards during their life. i have never owed anyone anything. Thats the way I prefer it.Good luck

Never reallly needed to use my overseas VISA debit card here except when I'm booking my flights in/out of the country...I also have a local BDO atm/debit card which I use only for cash withdrawals.
I'm mainly an all cash man for any local bills/purchases...Infact we actually haggle quite a bit here whenever my partner & I shop especially at the markets/larger provison/hardware shops we frequent. (I hardly see the locals haggle) but I do tend to get a better deal/discount especially when buying items in bulk which we do most of the time.
I too have no debts...nor any expensive stuff here that I can brag about... but I do definitely live a happy contended carefee life...well at least most of the time.

Philippine banks don't care about your excellent credit from another country.....you must PROVE to THEM that you are credit worthy......start with a secured credit card....over tie, they will learn to trust you in paying your debt......then allow you to have a regular credit card. Too many foreigners have fled the country without paying their debt in years PAST......so banks must get to know you for a while.

capricornrising wrote:

Onefog-I

<snip-1>STRONGLY dont recommend you get a credit card here in the Philippines. Heres what you do:If you already have an account with BDO just ask them for an ATM "debit card" to go with your savings account.

<snip-2>You can withdraw 10k pesos per every 24 hrs or 200usd.

<snip-3>I withdraw 10k pesos maybe once or twice a week and keep it hid in my apartment for cash   emergencies maybe 2 thou  usd at one time.

<snip-4>I just let the deposits for my soc sec go into my BPI account

<snip-5>I only use my BPI atm account to pay my utility bills online  Cignal tv-PLDT for my landline and internet combo. That way I always have a few thous usd in my apartment in dollars or pesos or both for emergencies and exchange the usd into pesos as needed.

<snip-6>All 3 of my brothers have had problems with credit cards during their life. i have never owed anyone anything. Thats the way I prefer it.

I'll add a few comments to Jimmy's post.

#1- I do recommend in getting a credit card in the Philippines if your bank offers one to you, like they did to my stepson. Since he had no credit history, this was an excellent way for him to build one. Make small purchases each month and pay them off when your statement arrives.

#2- I have withdrawn 30,000 PHP, 10,000 at a time, three consecutive times, all at once at BDO. When I arrive in the Philippines I used the CitiBank ATM to withdraw $300 in PHP from my Citibank account in the states.

#3- I keep $1,000 USD in a dollar account at BDO for emergencies.

#4- My SS check is deposited in my States account with the rest of my money for safety, transferring money via "Wise" as needed.

#5- I use my BDO account for paying my utilities bill on line. I keep 10,000 PHP in our house for walking  around money.

#6- People do have problems controlling their plastic, but at our age on this Expat Forum I think we are mature enough to control our finances.

I agree with you concerning having the maturity at our age to manage our finances.  My partner who is a Filipina, has told me that many Filipinos who receive credit cards from the bank just go on wild spending sprees with zero intention of paying any of the credit back to the banks.  I think that may also, justifiably so, be a big reason why banks here in the Phil are reluctant to grant credit cards....and of course there are sketchy foreigners who flee the country with unpaid credit card debts as well.  Anyway, good thing i have a credit card from my own country for emergencies.  Is it difficult to get condo loans for foreigners here in the Philippines?

Gregorio2020 wrote:

Too many foreigners have fled the country without paying their debt in years PAST......so banks must get to know you for a while.

Never knew that....but I'm sure if you are an SRRV holder it should be much easier to get hold of a credit card if required as you already would have skin in the game. (A deep frozen USD deposit)

What is an SRRV? Forgive my ignorance

Special Resident Retiree's Visa.
(SRRV)...but maybe now not so special like it used to be.

https://pra.gov.ph/srrv/

Hoothoot

manwonder wrote:

Special Resident Retiree's Visa.
(SRRV)...but maybe now not so special like it used to be.

https://pra.gov.ph/srrv/

Hoothoot

After checking out your link, it sounds like the Government wants to discourage applications with those requirements. Sounds like they have built the perfect financial wall.

I would think if anyone could qualify,  there are better options somewhere else on this planet.

Not too sure but USD$$$ are still very welcome here!

https://pra.gov.ph/#bids-and-awards

"#1- I do recommend in getting a credit card in the Philippines if your bank offers one to you, like they did to my stepson. Since he had no credit history, this was an excellent way for him to build one. Make small purchases each month and pay them off when your statement arrives."

Using a credit card for purchases is wise as here in the UK the 1974 Consumer Credit Act gives you exceptional protection if your purchase is between £101 and £30k i.e if the product or service is not as described or faulty the credit card company is on the line to refund you the monies paid if the supplier won't (genuine company or just a plain scam)
However before applying for a credit card in another country you must first establish the protection that those countries laws offer with credit cards. My 'assumptive  ' guess is that in the Philippines the protection laws will not be as robust as in an advanced western economy. I would caution taking out a Philippines card before checking with the card issuer (bank) the protection offered subject to the purchases you intend to make. As I am not a permanent resident of the Philippines I am unclear as to whether your home country bank will allow you to use their credit card on an ongoing basis as opposed to just visiting the country for business or pleasure as I do. I use HSBC & Amex cards and as long as I clear the debt every month no charges are made but there is a fee when using the card overseas which may not be the case with a locally issued card.  UK law still applies if the credit card is used overseas.

Lotus Eater wrote:

As I am not a permanent resident of the Philippines I am unclear as to whether your home country bank will allow you to use their credit card on an ongoing basis as opposed to just visiting the country for business or pleasure as I do. I use HSBC & Amex cards and as long as I clear the debt every month no charges are made but there is a fee when using the card overseas which may not be the case with a locally issued card.  UK law still applies if the credit card is used overseas.

I've been using my cards issued in the states for three years this August. Before coming here I notified all my CC companies I would be using them in the Philippines. One time  during the first year, one card was declined. I called them and they made a notation in their records. Every time I use that card they email me saying the card was used for overseas transactions. The email gives me the amount and says if it was you no further action is required.

Yes, my CC companies charge me 3% on these transactions. A small inconvenience but that's the cost of doing business, but on the other hand the card is paid in full each month. To look at it another way, my annual interest would be 3% instead of zero percent.

When I shop at Landers or S&R I usual run a bill up between $200 to $400 USD, I keep a well stocked pantry and never run out of anything. I spend a lot but I buy what I want to buy. We don't have two of everything, we have much more. Also some products are not restocked by S&R/Landers timely, so I buy much more of each item as a hedge when they are out of my favorite US products.

Also, I look at it this way, we are talking about consumables, whether we use it now or later, it will still have to be replenished and paid for, so why run out.  Also buying a lot cuts down on "Grab" rides.

During this Covid outbreak, we have a large supply of everything and with our extra, my wife gives food  away time to time. Sometimes we give help without them asking and if they do ask we never turn anyone away. She will ask and I say ok, we can buy more.

I have a big household, seven adults, my wife & I, two stepsons, a daughter in law, my wifes nephew (he pays the water bill) and our housekeeper.

A well fed household is a happy household.

I don't like caring that amount of Peso cash on me with these big shopping trips and I don't keep that much cash in my BDO peso account to use my debit card. I keep my cash in the US and transfer as need by "Wise".

I am similar to you in my spending philosophies and also shop at S&R I have only one credit card American Express from Canada, and it serves me well. Most of the time I use my BDO debit card though. Currently I'm renting in BGC. However, my Filipina partner want to move into a cheap place to save money for 6 months to a year so we can come back to BGC to buy a condo here because we love the convenience of this city. That said, can you recommend any places to rent in metro Manila that are still reasonably comfortable according to foreigner standards yet still under 20k per month?
Cheers!

onefogarty wrote:

I am similar to you in my spending philosophies and also shop at S&R I have only one credit card American Express from Canada, and it serves me well. Most of the time I use my BDO debit card though. Currently I'm renting in BGC. However, my Filipina partner want to move into a cheap place to save money for 6 months to a year so we can come back to BGC to buy a condo here because we love the convenience of this city. That said, can you recommend any places to rent in metro Manila that are still reasonably comfortable according to foreigner standards yet still under 20k per month?
Cheers!

I don't know if Metro Manila will be cheaper rent wise. I'm fortunate that our house has no mortgage in Pasig. Metro Manila is not the garden spot, it's closer to the trash heap.

I'm not suggesting this but if your Filipina Partner really wants to save Money move to the provinces, give up S&R and live a Spartan life style. Or maybe you can make adjustments to save money and still live in BGC while you save. Your solution in saving money for the Condo is cut back expenses or increase income.

Cut back expenses is my approach you're right. My rent is nearly 60k per month here in BGC, so the plan is to move to mandalayung next month into a brand new unfurnished condo that is only 15k per month for around a year. Should be able to tuck away around 40k per month savings for the year we stay there. Hope the plan goes as planned 😊

onefogarty wrote:

Cut back expenses is my approach you're right. My rent is nearly 60k per month here in BGC, so the plan is to move to mandalayung next month into a brand new unfurnished condo that is only 15k per month for around a year.

Thats cheap for being Metro Manila but expensive compared to common provinces    
(I have seen rather nice located whole HOUSE for as low as 8000.)

How come only 15k in Metro Manila - "covid price"  introduction to fill empty condos perhaps

I think it's Covid pricing lol

What province/s do you recommend for a foreigner to rent a house in? Do you have any links to share that list rentals in provinces? Thank you 😊

I don't know about a credit history in the Philippines, my wife will buy things from a local appliance store on credit, she has the cash but for some reason she pays a monthly  bill, she has over the years bought a lot of things but the appliance store reports to no one, if you go to a different store they will ask you if you have used credit you tell them, they check with the other place, I have been offered credit cards from my bank also from banks I don't have an account with but I have no use

davao city

I applied, for a credit card, at BDO where I have 3 bank accounts.  I was turned down, because I am over 70.  They do not care about my excellent credit in the U.S.

GLEN-Open an account with BPI-Best bank in the Philippines. Theres no discrimination against seniors. You

can even take out a life insurance policy up to about age 75 or 76.at BPI Cant do that at BDO. I have accounts

at both banks. Keep my monthly pension deposit at BPI and use BDO for my ATM when I need cash.

There are many more BDO ATMS around then BPI has by far!

Bank of Commerce have mastercard Debit.i use it already 3 years.

Glen Adkins wrote:

I applied, for a credit card, at BDO where I have 3 bank accounts.  I was turned down, because I am over 70.  They do not care about my excellent credit in the U.S.

I'd be pissed off if I were you too!

I tried BPI.  If I deposit P10,000 and leave it in the bank, only then will BPI give me a credit card.  I would rather have the use, of my money, and no credit card.  The credit card becomes useless.