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.

I became free from the bondage of credit cards. And I pray I’ll never become a slave again.

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.

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.

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