It’s been a year since I got my Secured Credit Card from Security Bank. It was my first credit card since my HSBC card got defaulted in 2010. I initially applied for a regular credit card, but they offered me to get a secured credit card instead.
Here’s a short review of the Secured Credit Card from Security Bank after a year.
Let’s first highlight the fact that a secured credit card has exactly the same uses and benefits as a regular credit card. Everything that you can do with a regular credit card can be done with a secured credit card. What are the only differences? I could only think of two:
1. The approval is 100%.
2. Your credit limit is dependent not on your income, but on your holdout amount. What is an holdout amount? I’ve discussed this in this post: Getting a Secured Credit Card from Security Bank
So one year later, I’d say I’ve been using my card literally everyday.
I made it my default payment method for Grab and Uber (although I already stopped using Uber in December). I never missed any payment deadlines, and I tried my best to pay the total amount due in full the entire time.
I got my card in March 2017, and as early as ten months later, I already started receiving offers from agents offering me cash loans and credit cards:
It looks like I can now apply for a regular credit card! I did not entertain these messages because I am not really interested in getting a regular credit card yet. I am planning to request Security Bank to convert my secured credit card into a regular one, and see if they’ll do that for me. If not, I’ll consider submitting an application to BPI or EastWest. I’ll update this post when that happens.
The holdout amount is still on hold; I haven’t contacted my bank to release it yet. I believe that releasing the money will result to the closure of the credit card, subject to the bank’s evaluation.
Because if you’re in good standing, the secured card will be converted to a regular credit card even if the holdout amount is released.
Overall, it’s been great having a credit card again after seven years. I’ve matured financially through those years, so I am now a responsible and wise credit card holder.
Having a secured credit card is a perfect way for people to gauge if they could own a regular credit card without falling into debt. This is the safest way to “try” owning a credit card for at least a year. So, if you are unsure if you could still manage your spending if you have a credit card, try getting a secured credit card first.
September 2018 Update:
Around 18 months after getting a secured credit card from Security Bank, I went to my branch and made a request to release my money on hold. They called SB cards and they let me spoke with the representative; the call lasted for about 15 minutes.
I learned that the processing will go through SB cards first. They will assess whether or not your card can be retained (unless you request to cut it already).
I received an email three days later asking me to submit a proof of income for my credit card to be converted into a regular one. I sent them a copy of my ITR (they also accept payslips and CoE).
The branch told me that the entire process will take a month. However, when I checked my account via their app two weeks later, the hold out amount has already been released! And my card is still active, which means, it is now a regular credit card. Awesome!