04 March 2011


Credit Card and Overseas Filipino worker

I have read more topics about credit cards. I'am quite curious about how would an ordinary overseas Filipino worker like myself use that powerful piece of plastic called credit card. 

Back in the 1950's where credit card was first used in the United States. I guess that was  Diners Card as the first issued credit card according to the blog of Francisco Colayco ( A Filipino Financial Adviser). 

Nowadays, All banks and financial institution worldwide issued credit cards in different manner in terms of policy, plan, and client income bracket, banks also issued different type of credit cards according to the choice of the applicant the most common now are mastercard, visa card and american express. It is so easy to get one, perhaps your bank might just give you a pre-approved credit card if you have an outstanding account balance.

When your employer or company deposited your monthly salary to your bank account, the bank itself review your financial capability and approve your application for a credit card right there and then. Here in Muscat, Oman its is not that simple for there are certain qualifying points that has to consider and the most important thing is your basic monthly salary. It is not about how much you have in your bank but it's basically your monthly salary. I heard that  in Dubai UAE, it is as simple as a snap of a finger to get approval, though I really have no idea on this.But a friend of mine confirmed that banks in Dubai even send you application forms for salary loans.

In the Philippines, OFW cannot be approved for credit card application otherwise you should have a hold on time deposit as per bank agreement. If however approved you are not allowed to withdraw your time deposit until the bank can clear all your credit card obligations. This is based on my knowledge when I applied Phil. National Bank for my first credit card. I was confident at that time because PNB has been my long time financial bank and I even have my checking account, but according to the representative still it's not a guarantee to get approve for a credit card. A hold on peso or dollar time deposit is the necessary one.

Let me go back to the title on this post,  credit card and overseas Filipino worker. the way I observed now that OFWs' were on too much spending by shopping with the use of credit cards. I could see that the power of this plastic card has ruled the ways of OFWs'. The story behind this is that because money in its form is intangible just this plastic card in you hands easy to swipe forward and you're done with your shopping.

Banks mushrooming their credit card issuance to prospective clients. And as a client  you will certainly grab that opportunity because of the ads and info about reward system, rebates and promos. Just make sure upon signing up application you must have understand fully the company policy, payment terms and interest incurred therein. Paying the whole amount used in your credit card during due date is ideal one. You will enjoy the benefits of that rewards and rebates and at the same time no interest incurred. However, paying only the minimum amount as advised during your due date there is certain interest ads on to your monthly payment. and that's the time you will start to slip off on the power of that piece  of a plastic called credit card. 

Credit card in some way is good, if you will only intend to use it for emergency purposes  then that's definitely perfect. The main thing is be careful with the charm of that mighty piece of plastic or it might ruined you financial freedom. Just always remember your responsibility leads all the way.

Where you stay is half the adventure - RealAdventures

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