Mas gusto mo bang isagot ng cashier ay DENIED at hindi matuloy ang transaction? Or mas gusto mong matuloy yong transaction and then later on, ma-charge ka ng 700 pesos over credit limit fee?

This happened to me, with my Metrobank MFree, but this time, hindi sa store o sa shop, kundi sa Internet. When I checked, malaki pa ang aking available credit limit, so I charged $10 to buy a domain name from GoDaddy. Later, when I got my statement, I was surprised to see an over-credit-limit fee of 700 pesos! Yong $10, mga 400 plus lang, pero ang penalty ko 700!

I checked my statement kasi bakit ako over credit limit, and I was further surprised to find a big posting — merong amount na hindi pala na-post na noong September pa dapat na-post. I checked din my old statements of account, baka nadoble ang posting, at hindi naman. Delayed by 3 months ang posting!

I thought about bakit in-approve ng Metrobank Card system yong online payment kung wala na pala akong credit, kasi ang ibang cards naman usually DENIED ang response kapag over the limit na. Siguro maraming cases na sa Metrobank na nagreklamo ang mga cardholders nila about failed business transactions dahil DENIED ang payments nila due to OVER CREDIT LIMIT.

Sa BPI Classic, walang over-the-limit fee because BPI denies purchases when the credit is used up. Sa statement of account ng BPI card ko, nakalagay na “BPI reserves the right to disappove any purchases or cash advance that exceeds your credit limit.”

Anyway, I called Metrobank Customer Service about it, and the customer officer was very nice. I will know next week if my 700 over credit limit fee was reversed. I think I have a good chance because it’s my first time to be charged with over limit fee, and that there was a much delayed big posting.

You can also use SIP to pay for nursery, prep, elementary and high school fees.

For accredited schools, you just ask the school cashier to swipe your BPI Express Credit card.

For non-accredited schools,  submit school assessment slips or statements and school receipts to a BPI Express Center or a BPI/BPI Family branch. You’ll receive cash through your BPI account the next banking day if you apply at an Express Banking Center or within 3 days if you apply at a branch or a check within 3 days of application.

Here’s an alphabetical list of colleges and universities accredited by BPI for instant credit card payments at school cashier counters:

Ama Computer College
Asia Pacific College
Asian Institute of Management
Assumption College – San Lorenzo
Ateneo de Manila – Quezon City
Ateneo de Manila – Rockwell
Ateneo de Davao University
Central Philippine University
Centro Escolar University
Colegio De San Juan De Letran
Colegio de San Lorenzo
College of Oral Implantology
Don Bosco Technical College
Far Eastern University
Fatima Medical Science
FEU-East Asia College
First Integrated Educational Systems
Holy Child School of Davao
Informatics College Manila Inc.
ICCT Colleges Foundation
Kester Grant College
Lyceum of the Philippines
Meycauayan College
Meycauayan Doctors
Miriam College
MSA Group Inc.
National College of Science
Our Lady of Fatima College
Our Lady of Perpetual Succor
Pasig Catholic College
Philippine Women’s College of Davao
Saint Pedro Poveda College
San Beda College Alabang
San Juan De Dios Education
Siliman University
Sotogrande Teaching Institute
Southville International School
Southwestern University
St Jude College
St Paul University
Thomas More College
Trace College
University of Asia and the Pacific
University of San Jose Recoletos
University of Santo Tomas
University of Perpetual Help
University of San Carlos
University of St La Salle

*The list of accredited nursery, prep, elementary, high schools and other institutes will be included in another blogpost.

Other notes:

1.  The monthly add-on rate ranges from 1 to 1.5 percent.

2.  The minimum amount to be charged is 3,000 pesos.

3.  You must be in good credit standing with BPI.

4.  Your SIP credit limit can be increased up to 3 times depending on how long you’ve been a BPI credit cardholder and how you’ve handled your payments.

5.  The promotional interest rate can change without prior notice.

How to Compute Your Monthly Payment:

Multiply the loan amount by factor rate (Refer to the table)

Example: Loan amount is 20,000 pesos with term of one year.

Monthly payment = 20,000 pesos x 0.093333 = 1,866.66 pesos

You pay BPI 1,866.66 pesos every month for 12 months.

Ang total payment mo would be 1,866.66 x 12 = 22,399.92

Ang total interest na babayaran mo ay 2,399.92

Related Articles:

Tuition Fees at FEU and Some Other Universities in Manila, Philippines
Low Interest Personal Loans in the Philippines
Some Cheap Loans in the Philippines Are Not Really Cheap

about loans after discovering that there are a lot of people looking for this type of loan on Google.  I’m gonna mention first those low interest loans that I’ve used in the past, and later on, those that I’ve only heard or read about.

Warning/Advice:  Get loans only for valid reasons, such as tuition fees (but first try a promissory note to the school — this is free interest).  A loan to buy a flat TV to replace your fat TV is not valid, I believe.

Loans That I’ve Used and Repaid:

1. 1% to 2%  Jewelry Loan from Citystate Savings Bank

This loan doesn’t deduct the interest in advance.  If after appraisal of your jewelry, you’re informed that you can borrow 10,000 pesos, you get the 10,000 pesos. You’ll just pay a few pesos for the documentary stamps.

The rate is 2 percent a month. For a loan of 10,000 pesos, the monthly interest is 200 pesos. You pay 600 pesos after three months, on the maturity date.  The lower 1% interest rate is offered to borrowers with at least 100,000 pesos in their Citystate accounts.

Minimum loan is 300 pesos.  It’s available at the head office along Shaw Boulevard and branches along Chino Roces corner Delarosa in Makati, and in Baclaran, Pasay, Mabini and Baliuag.

Warning:  Pay the interest and renew every maturity date to avoid penalty of additional percent.  A More Important Warning:  Your jewelry will be sold immediately if you don’t renew on time and if you don’t heed the notices of sale.

2. ZERO % or 0.6 % or 0.7% Loan through Credit Card Balance Transfer

This refers to a balance transfer that pays out cash to you, the cardholder. This DOES NOT apply to balance transfers that pay directly to the other credit card — you can’t use this for other purposes.

For balance transfers that pay out the cash to you, in effect, you’re telling the bank you’re gonna borrow money to pay another bank’s credit card loan, but you’re not going to do it — you’re going to use the money for another purpose.

A balance-transfer loan is one of the cheapest loans available (sometimes banks offer zero-interest), but also among the most dangerous.  Why? The loan is a bait. I once took advantage of a Zero-Percent Balance Transfer, thinking that I could pay the loan within the 12-month period, thinking I could outsmart the bank, and borrow money for free.

Was I so wrong, and the bank so right. Twelve months passed, and I wasn’t even able to reduce the principal by a peso, as I was paying only the minimum-due for my original balance — the balance before the new balance-transfer loan was added.  It would be years of tears, sleepless nights, and tense-filled work days before I was able to get out of this loan.

However, if you’re the Really Determined Money-Savvy type of person, this can be a cheap or zero-cost way for you to borrow money.  Pay the balance-transfer amount within the payment period, and then cut/cancel the card immediately after.

If you feel guilty a bit about using the bank, just think that the bank knows this risk , and it is more than willing to lend money to you and a few others for free… in order to capture the many others who surely won’t be able to pay their loans on time.

3. Credit-to-Cash Offer from BPI Credit Classic Card

Borrow using the Special Installment Plan or SIP portion of your BPI Classic credit card. The fastest way to avail of this offer is to go to a BPI Express Center, usually in malls or near malls and fill out a short form. You’ll get your money about 4 to 6 pm of the next day if you have a BPI or BPI Family bank account where the money can be deposited quickly. Check pickup is the alternative if you don’t have a BPI account.

The interest rates range from 0.80 to 1.5 percent, depending on the amount and term (number of months to pay), and even lower if there’s a promo.

I’ve used this recently and even earned from it. I borrowed money and lent it for a slightly higher rate.  The borrower, who was referred by a relative, presented me with a real estate title to secure the money and a loan contract. She even thanked me because my interest rate was much lower than her usual lending firm that also requires paid paperwork.  This isn’t my business though — this was only a favor to my relative.

4. EasyPAY Cash from BDO

This loan is similar to the BPI Credit-to-Cash, but this BDO offer requires official receipts, such as tuition payment receipts, tuition assessment statements, hospital receipts, cash purchases of appliances, and car repair payments. Total amount of receipts must be more than 5,000 pesos and each receipt must be more than 500 pesos. You should also have adequate credit limit.

The one advantage of this BDO EasyPAY over the BPI offer is you can get this BDO cash immediately if you apply at a BDO branch.

5. Zero-Interest Loan using Paluwagan

This is only viable if these three factors are present:

• you have a good reputation with your officemates, friends and neighbors
• all members have a weekly or monthly source of income
• all members have a reputation of fulfilling their financial commitment

Suggest to them that you launch a Paluwagan, that you’ll be the one collecting, and that you’ll be the first to get the first sahod.  You can also tell them your need, and if you’re someone known as a good payor, someone might even offer to lend you money for free. My two close friends and I did two paluwagans at our former corporate workplace about two years ago.

6. Zero-Cash Interest using the Traditional Sanla ng Lupa sa Probinsiya

This is very different from the sanla ng lupa sa banko.  This traditional loan has no cash interest. The only benefit that goes to the lender is any benefit he can get from the pawned land while the loan is unpaid.  He tills the land and gets all the harvests.

This is also a contract between two people who know and trust each other and who are known in the village as people of integrity. This is essentially a character loan. The title of the land is never given to the lender. The only paper that is signed is an affidavit, handwritten or typewritten, that states the names of the lender and the borrower, the amount and the seven-year clause.

In our province, there’s this typical agreement that the lender gets the land if the borrower is unable to pay the loan after seven years and unable to forge a new agreement with the lender.

The timing of the lending and the paying is also unique with this kind of loan, as it’s usually made after harvest and before the next planting season.  This gives the lender time to decide what to plant on the pawned land.

I used this remedy about three years ago, when I was financially down, and thank God, I was able to pay it in March 2010. This also highlights the blessings received by farmers who have OFW children with well-paying jobs. This farmer was able to lend me money because she has a daughter who’s been working in London for years.  This irony does not escape me hahaha:  Yong anak niya hindi nakapag-college, kasi walang pang-tuition, kaya pumunta sa London at nagkapera. Ako, nag-college sa isang unibersidad sa Manila, di tuloy ako nakapunta ng London para magkapera. Hahaha

7. Rural Bank Loan

8. SSS Salary Loan

9. Pag-ibig Salary Loan

10. Loan from a Life or Educational Insurance Policy

11.  Personal Loans Offered by Banks

Ask for the hidden charges, such as processing fees, etc.  Mababa nga yong naka-advertise na interest rate, pero malaki pala ang babayaran na processing fee o X fee o Y fee o Z fee. The contract must contain the exact monthly payment amount and the number of months.

Loans That My Neighbors Have Used:

1. Loan from Cooperatives

2. Loan from Microfinance Organizations

Loans Na Mag-isip-isip Muna Nang Maraming Beses

1. Car Loans
During the deepest part of our abyss about 4 years ago, when my father and mother were getting confined at the hospital one after the other,  I called a company with ads that said CAR LOANS.  I thought they were offering loans secured by a car. We ended up laughing because the car loans were for the purchase of a new car or a slightly used car.  Hahahaha.

But there are car loan lenders that take possession of your car as a collateral for the money you borrow from them. Pero paano pag di mo mabayaran? Maliit na loan, tapos ang mahal ng sasakyan!

2.  Memorial Loans

During that same dark period in my life, I called an ad that said Memorial Loans.  Alas, even if my memorial plan is sikat in my part of Metro Manila, it didn’t qualify because they were only accepting mausoleum plans.

2. Pawnshops with Super-High Interest Rates

3. Five-Six Loans from Our Friendly Indianos

4. Real Estate Loans or Sanla ng Lupa

This blogpost is getting longer, so I pause.  I’ll make links to expand on the other loans in the coming days.

You might like these articles:

Got Out of Credit Card Debt

Got My Maturity Benefits from Danvil Plans on Time

Also, when your credit card issuer changes the collection agent, you again need to be notified.

When notifying you, the credit card issuer should include the following:

• full name of the collection agency
• contact details

Collection agents, whether in-house or third-party collection agents, are required to disclose their full names to you, the cardholder.

There’s one condition:  This notification requirement should be in the Terms and Conditions of the Credit Card Agreement that you signed when you applied.

To avoid future credit card problems, don’t apply for one. But if you need a credit card for your online work, or for credit history building, choose the one with lifetime-free annual fee or the one with low interest.

And then don’t be a mall-goer if you’re easily attracted to things, or if you’re the generous type who buys so many things for the sisters, the brothers, the pamangkins.

Or don’t bring your credit card always. Keep it in a safe place at home. And try your best to Pay All Your Outstanding Balance before the due date. Pag may pera na, huwag nang patagalin sa kamay, kahit malayo pa ang due date, dahil sabi nga nila, madulas ang pera.

Pag minimum due lang ang binabayaran mo, baka nagkaapo ka na, di ka pa bayad. Take it from me. Nalunod na ako sa credit cards, I always thank God na nakaahon ako.

Free From Credit Cards, At Last!

This is the only credit card in the Philippines which has no annual fee for life.

Except of course those premium cards for the very wealthy, and those cards whose owners accumulate enough points to get annual-fee waivers.

I’ve related in my other posts that I finally became free from the bondage of credit cards last February 15.   I had eight credit cards, and after paying off all the balances, I canceled all of them, except my local BPI Classic.

But because I need a credit card for my Internet payments, I had to choose one credit card good for international purchases.  I like BDO Shop More, but if I have to cut costs, I should retain one with no maintenance fee.

So I finally chose the M Free Mastercard of Metrobank.  After canceling my old Metrobank card, I requested for the no-annual-fee card, and it was given to me.

More than a year ago, I applied for this no-annual-fee Metrobank card, but I was told I need to first use an annual-fee Metrobank card for at least a year before I can qualify for the free annual-fee credit card.

If you need to maintain just one card, consider this no-annual fee credit card.

Amid the pain of selling something meaningful to us, my husband and I sold the lot we bought in the 1990s just so I can be free.   Over the past few years I became a slave to lenders, as I accumulated more than 200,000 pesos in credit card debts.

Even with a higher-than-average salary, I couldn’t make a dent on the principal balances even if all my payroll money goes to paying the monthly card bills.  I had to work overtime everyday, even on Sundays.  I couldn’t even visit my aging parents in the province because there’s nothing to set aside for fares.

There’d been a lot of pain… and other awful things too embarrassing to describe here. It’s enough that now I’m free.

(by bluesemotion, photobucket)

And I thank God that amid my many grave financial mistakes, there’s one good  investment that I did when I was younger — that is to buy a lot in a good location and pay the amortization faithfully through the years no matter how hard.  And now, it was the one that saved me.
Credit cards are not evil per se. They can help. They have helped me when people I love had to be hospitalized and when tuition needed to be paid.

BUT credit cards are like knives — they can kill if not handled carefully.

There are many important things I have to tell my children.  But there’s one  thing they don’t have to hear about — the consequences of credit card use. They’ve seen how I suffered and almost got drowned in torment.

Credit cards in the Philippines

• you cannot pay the total amount due each month
• you can only pay the minimum due
• and you may have to be late some of the time,

then do not get credit cards that have high late-penalty fees and that are strict on payment dates.

NOT RECOMMENDED:

HSBC — charges 600 pesos for every month that you are late even by just an hour or a day.

If you call them and explain your situation, your 600 may be reversed only once in every 6 months, and that depends on your reasoning and the mood of the bank representative at the time you are calling.

Next month, I’ll be receiving some money  (Thank you, Lord!),  and this HSBC card will be the first I will pay off fully and say goodbye to forever.  Good riddance!  Wow, how nice it would be to cut my HSBC card!

I was late in paying after the Ondoy floods, but the HSBC never heard my explanation.  No soul!  Only business for them.

STANDARD CHARTERED — also charges 600 pesos for every late payment… even by just an hour.  Remember, the date changes at midnight?  Or maybe the cutoff hour is every 6 am?  So, after midnight or after 6 am, and your payment is not there, the 600 pesos is charged, presto!

How do I know?  I have both of them.

HIGHLY RECOMMENDED

Fortunately, there are credit cards in the Philippines that have retained some bits of kindness,
and I’m glad that the local banks  (although they have foreign shareholders) are the leaders.

Aside from forgiving late payments, they also charge lower fees.

BPI EXPRESS CREDIT has been very kind to me in terms of late payments. As long as my payment-due doesn’t remain unpaid until the next statement date, I don’t get charge a late-penalty fee.

Kahit ma-late ako ng 5 days or 10 days! But, of course, I don’t abuse it. I oftentimes pay very early too. An I’ve been using this BPI credit card since March 2000.

And when a late-penalty is deserved — because the next statement date has passed and my due remained unpaid — eto yong times na may mga unexpected major expenses –
the penalty fee was only 6% of the total amount due.

One time I was late in paying 1,715.40 by 13 days (almost 2 weeks!).
And you know what?  My late payment was only 102.93!  Compare that to HSBC and Standard Chartered which charge cardholders 600 pesos for being late for only an hour or a day!

EASTWEST is also kind.  It forgives a few days of delinquency.  And the charge is only 200 pesos — when the next statement date has already passed.

BDO SHOP MORE charges 300 pesos or 5% of amount due, whichever is higher.

METROBANK charges 600 pesos or 7.5% of amount due, whichever is higher. This is one local bank that charges high, although this bank offers an annual-fee-free card and a low-interest Cash2Go loan.

Update as of March 2011:  Metrobank M Free Mastercard now charges 700 pesos for late payments.

BPI EXPRESS CREDIT charges 6% of the amount due for the month — no fixed fee, no whichever.

This rule considers the poorer ones like me — 6 percent of 1,000 is only 60 pesos, but when a rich credit card holder is late, the 6-percent fee for 100,000 is 6,000 pesos.  But, oh well, I’m not a gold cardholder; the late-penalty rules for gold credit cards could be different.

When charged a late penalty fee, call the bank.  Give a valid reason.  Oftentimes, they forgive, as long as you are not late often.

Related Articles:

Free from Credit Cards, At Last!

BPI, BDO, or Metrobank Fees — Why Keep Paying Them?

Based on our personal experience, BPI also offers credit cards to OFWs, but you wait for the bank to offer you one.  BPI offers a credit card to an OFW who has maintained a BPI time deposit account for a couple of years. BPI also has investment accounts that offer a credit card account as incentive.

BDO

BDO issues secured credit cards for OFWs, meaning one must have a savings or checking account with BDO.

The required documents are:

1. Valid IDs
2. Employment contract or certificate of employment
3. Remittance receipts for the last 6 months or payslips for the last 3 months

The other requirements are:

1. Minimum monthly income of 10,000 pesos
2. At least 21 years old, not older than 65
3. Must have a BDO checking or savings account or time deposit of at least 15,000 pesos or equivalent amount in dollars
4. Must have 2 years continuous job contract
5. Beneficiary or card administrator must be residing or working within 30 kms of a BDO branch
6. Must have a home landline phone

You can call the following numbers for further inquiries:

Call 631-8000
(within Metro Manila)
1-800-10-6318000
(Libreng Tawag Outside Metro Manila)
(IAC)+800+6318000
(Libreng Tawag Outside of the Philippines)
Email: callcenter@bdo.com.ph

HSBC

For OFWs, the requirements are:

1. Employment contract or certificate of employment
2. Working visa or work permit or OFW card or certificate issued by POEA
3. Proof of home address, such as the latest billing statement under the name of the applicant, with the address of the applicant.
4. A valid ID, such as passport, driver’s license, PRC ID or SSS photocard
5. TIN number
6. SSS or GSIS number
7. Proof of Income

• could be latest ITR or
• employer’s certificate of compensation or
• payslips for the last 3 months

The other requirements are:

1. At least 21 years old, not older than 65
2. Philippine resident
3. Have a residential landline phone
4. Must be living or working in Metro Manila, Bacolod, Baguio City, Batangas, Bulacan, Butuan, Cabanatuan City, Cagayan de Oro, Calasiao Pangasinan, Cavite, Cebu, Cotabato, Dagupan City, Davao City, Digos Davao del Sur, Dipolog, Dumaguete City, General Santos, Kalibo, Iloilo, Laguna, Laoag City, Legaspi, Lucena City, Naga, Olongapo City, Ormoc City, Pampanga, Panabo & Tagum Davao del Norte, Puerto Princesa, Subic, Rizal, Roxas, Tacloban, Tagbilaran City, Tarlac City, Tuguegarao, Urdaneta Pangasinan, Zamboanga City.
5. Have at least a gross annual income of 150,000 pesos for the classic cards and at least 480,000 pesos for the gold cards

Related Articles,  posted April 20, 2011:

Secured BPI Credit Cards for OFWs

BPI Credit Card Payment for College Tuition Fees