I got my first credit card when I was 20 years old when the minimum age for opening one is 21 years old! And within a span of 9 months, I immediately got a credit increase. I never paid a cent of interest since I always paid my dues in full every month. And I have stashed my emergency savings in the bank, so I have my reputation built up. (That’s probably all there is for this article, but if you are Interested about the details, read on. )
Ever since I started working online / freelancing, I never really indicated what my real age was in the job sites. I wanted my profile to look credible and I wanted employers to at least give me a chance. It’s not that I’m too old, but I was too young to even start working. I was 15.
So my point is that I’ve already been earning, and I’ve been loyal to my bank for years.
At first I tried opening multiple banks at once, but it was a head ache, so when I moved to another city, I opened one account then another one on the same bank (though I already had an account of the same bank in my home province, which I eventually had to close as it was compromised and I can’t go home.). If you want to know why I had to open another account, read this.
I’ve already been planning to apply for a credit card because of the following things:
- I wanted to build up my credit score – as early as now. Because I had plans of purchasing real estate properties or apply for loans in the near future (like 1-2 years).
- A credit card is very convenient for online purchases – because although debit cards are widely used anywhere online, there are still some exceptions like airlines, hosting sites, airbnb, uber, etc.
So, I finally applied. Note that I couldn’t show any supporting documents or income tax returns or pay slips because I was a freelancer, and I had no definite employer. But because my account balance went above the minimum maintaining amount (20k) for endorsement, I was endorsed by the bank teller, and all the necessary requirements were waived! Easy, right? So if I were you, start building your reputation in your bank and make sure your balance doesn’t go below 20-50k for at least 6 month, much better 1 year.
Within 3 weeks, I got my card! My application was approved and I got another supplementary card specifically for shopping.
Now remember, I applied for a credit card not because I want to spend, but because I want to build my credit score. So every month, I tried to not go beyond the 30% debt-to-credit ratio, meaning, if my credit limit was P20,000, I tried to not have beyond P6,000 outstanding balance. If I did, I immediately paid it off before using the card again. But then there were months when I almost maxed my limit, because of installment purchases I needed, but at the end of the billing period I immediately paid it, so I don’t think it will put a dent.
Now on top of this story, just recently after almost maxing out my limit, I got a minimal credit limit! Perhaps they were able to detect that my limit was not enough. Remember, do not let credit cards run and ruin your lives. Use it wisely to your advantage.
