“Please prepare twelve (months) post-dated checks”. That was the message that I received from the landlord when I was inquiring about the studio apartment that they are renting out. At that time, I didn’t even know what a post-dated check was, which makes me not the tenant they want.

Years later, I was again in need of a checking account in order to pay my downpayment to SMDC. They referred me to BDO, where it felt like my application was treated as a credit card application.

Do we really need checking accounts here in the Philippines?

We couldn’t pay in cash and card all the time. A checking account has the same function as a savings account, plus more. It has no transaction limits. I think, the added security is probably the best privilege it could offer. There is a paper trail to every issued check, while cash or card can be spent by anyone and could be difficult to trace. A check is regarded as the safest form of payment.
I have yet to find out if this is true in the Philippines, but if you are re-building your credit history, a checking account may also help. If you have just paid off a defaulted credit card like me, consider your checking account an asset. Along with my Security Bank secured credit card, and a home loan amortization which I get to pay in full and on time, I have high hopes that I’d be able to get a regular credit card again in the future. Although, I am more than happy with the secured credit card, quite honestly.

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