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Credit Card Basics

A credit card application can either be approved or rejected— a decision made if banks hold you creditworthy. There's no sure-fire way to get a credit card approval on your application but we've listed a few question you can ask yourself to know if you're ready for the thrills of a card or the heartbreaks associated with it.


Am I creditworthy based on my profile?

The form you sign during credit card application holds your profile, which can present your credit worthiness or whether or not you are good enough to be granted a card or be slapped with credit card rejection. For example, you will need to fill in information about your employment record and how long you stayed in each company. Details like these will let the bank know if you can pay your credit dues on the particular card you specified in the application.

Or if you end up in debt for credit card misuse.


Am I creditworthy based on my credit history?

Credit history pertains to the transactions you made with banks, like credit cards and any past as well as outstanding loans. It holds details of how many credit cards you have, delinquent payments or finance charges under your name because of cash advance transactions, and also loans you've made in the past.

In order to provide a good credit history (and be considered more credit worthy), always be diligent and make on-time payments, which will reflect on your credit card details and other credit lines, including loans.


Am I creditworthy based on my debt utilization ratio?

The what?!

A good debt utilization ratio is a good credit card detail which is significant in order to get the next credit card approval. Simply put, it is a factor when there is less tendency for you to "max out" your credit card. To calculate your DUR, you can compute your outstanding balance on your credit card in one month divided by your total credit limit.


Am I creditworthy based on my employment record?

For the young, aspiring CEOs, there is a tendency to go "company hopping" in order to find meaning and drive to your career life. This may become a problem on the approval of your application if you have an unemployment record in between jobs. This lowers your ability to repay credits or loans in full or diligently, making you less credit worthy based on the perception of the bank or insurer. It will also affect the approval of your credit limit, which is determined by your spending habits and income.

Credit worthiness is also different if your source of income is your own business or if you are only working on project-based or freelance work.

Still unsure which bank or credit card to pick after you assessed yourself as creditworthy? Compare credit cards with GoBear Philippines to search for the best credit card for you!