Comments on: Marketman’s Credit Card Series 2011, Part I – An Industry Overview

By: Marketman

Marketman — Sat, 20 Aug 2011 10:32:32 +0000

Gian, if you are doing a comprehensive study, then you need to do some primary and secondary research. There are several sources you need to tap into like the credit card association of the philippines, published central bank statistics, annual reports, etc.

By: Gian

Gian — Sat, 20 Aug 2011 09:05:32 +0000

Hi, Mr. Marketman!

Great article! I just want to ask, where did you get your credit card statistics? I’m currently making a comprehensive analysis of the Philippine credit card industry and it would really help if I could get a head start.

Thank you and I’m hoping for your immediate reply!

Cheers!

Gian

By: Disappointed Citibank Cardholder

Disappointed Citibank Cardholder — Thu, 16 Jun 2011 03:57:27 +0000

I received my statement from one of my Citibank credit cards. As per my cc statement, I was being charged P1,200 for my membership fee instead of P1,500. They had given me an automatic P300 annual fee discount. I wasn’t happy with the measly P300 discount as I always get the full annual fee reversed with all my credit cards.

I called the Citibank hotline and requested the CSR to reverse the annual fee charges. The CSR told me CB instructed that reversal of annual fees will not be permitted this year. I asked to talk to his supervisor and he said that he is an officer and cannot grant my request.

I asked the CSR if they had any offer I could avail of that would reverse my annual fee. He said if I availed of a cash loan, CB would reverse my annual fee charges. I told him that was ridiculous because I didn’t need money and I wasn’t stupid enough to avail of a loan with a predatory interest rate just to have P1,200 waived!

I told him that I will just cancel my cc since I only use that particular card as a back up card and not my primary one. I refuse to pay P1,200 for a cc that I hardly use. This is the first time I’ve encountered a bank that refused to waive my annual fee. CB used to waive their annual fee but all of a sudden they refuse to do it this year.

I am disappointed with CB’s new policy of refusing to waive their annual fees. CB should take into consideration their cardholder’s credit standing and payment history as the basis for whether or not to waive their annual fee. Makes me think that they refused to grant my request since they haven’t made money off me because I’ve never gotten cash from ATMs using my cc, availed of any of their high interest loans and balance transfers or revolved any balance.

By: Fleeb

Fleeb — Sun, 15 May 2011 13:55:38 +0000

@Mm, I know but well it’s a loophole. Same tactic is applied even in gas station stores in the US. It was a topic of discussion I read in another forum. Most just conceded it to be a loophole.

By: joyce

joyce — Fri, 13 May 2011 18:30:48 +0000

thanks for this!! i only keep one credit card based on lessons learned from three good friends who couldn’t afford to pay their six figure debts, and this was the time we were only three years out of college and they were earning more than me! one friend maxed out all her five credit cards and would just pay minimum interest every month. while another used her credit cards to literally pay for everything: car repairs, insurance, mba school. and the other friend used it to pay for her family’s needs. the first two were bailed out by their parents who saw their bills and almost had a heart attack. and the other friend had to watch her money to pay off debt afterward.

By: Mojow

Mojow — Thu, 12 May 2011 15:48:55 +0000

Thank you for this post MM!
I’m one of those who immediately got a credit card after I got regularized in my first job. That was the first mistake I made. Then a series of mistakes followed from then on, as I squandered my salary thoughtlessly in my first few years as an employee using the credit card and I can only afford to pay part of the balance. The next few years and I had to acquire 2 other credit cards to pay for my balances in my 1st card. Then the balances and charges started piling up from all 3 of my credit cards and even if I’m getting a decent enough salary, it’s still not enough to settle all these debts. Suffice it to say that I wasn’t able to save anything from my first 6 years of working, really bad financial management on my part. I’ve learned from my mistake and now only keep 1 card, I literally cut the other 2 in half. What I did was got a bank loan and paid all 3 in full, so then it’ll be easier for me to pay just one debt and wouldn;t have to divide my payments into 3.

People should be given ample education on credit cards so they’d know exactly what to expect and what they are getting theirselves into – I think CC Companies in partnership with banks/government financial institutions should even host these kinds of seminars! And I agree with you that relevant stats and data such as the ones you presented should be readily avaiable to aid the education of consumers so there trial and error experiences such as mine will be lessened (i hope) to a great degree.

By: Marketman

Marketman — Thu, 12 May 2011 01:42:25 +0000

shiko, pay close attention to the posts when they get to my recent horrific experience with a credit card company… Noel, thanks for that link. Angelo, absolutely go ahead and like this on your facebook. I have also allowed re-publication in full on the “Pro-Pinoy” website, and I think the hits on this post alone are well over 50,000 page views by now and still rising as folks disseminate the information either by reposting or linking on their own facebooks, blogs and twitter accounts… Thanks everyone, I am just really swamped with work, hence the delays in the succeeding credit card posts…

By: shiko

shiko — Wed, 11 May 2011 07:42:51 +0000

Let me join the chorus of the grateful, MarketMan. I’ve only begun to swim the shark-infested waters of responsible adulthood (God help me) and credit cards can seem awfully tempting sometimes. I know better than to want one, but they do come in handy for international transactions, booking flights and hotel rooms, etc.

I have heard good things about HSBC in particular, so I wonder if you’ll eventually confirm that or disprove it. Hehe.

Thanks again and I’m looking forward to the next in this series!

By: Noel

Noel — Tue, 10 May 2011 07:13:40 +0000

Wow! Very informative post. I always knew that local credit card issuers charge exorbitant rates on unpaid balances. I was a bit surprised that less than 5% of the country’s population maintain a credit card.

From my own credit card experiences, I wrote a blog post on managing the credit card. So for those who want to escape from credit trap, follow the link below.

https://noelizm.blogspot.com/2010/04/managing-credit-cards.html

MM: If my link will spoil your credit card education series, feel free to delete the second paragraph onwards. Regards – Noel

By: Angelo

Angelo — Mon, 09 May 2011 13:30:34 +0000

MM, may I link this article on my facebook page? This is such an informative piece and people really ought to take time to read this. This is especially poignant for me as a few years back I was literally buried underneath massive CC debt. Had I known these things then I wouldn’t have been so cavalier about CC’s.