Wednesday, April 21, 2010

I'm credible now

Sometime last year, I tried to apply for credit cards but failed miserably. I blogged about how frustrating it is to be bombarded by sales people egging me to get their free cards but when I filled up the long forms and submitted the required documents, they rejected me without any explanation.

After a few tries last year, I gave up. I tried a few things but didn't work. These include:

1. Showing them a fat bank account flushed with cash
2. Sending them 3 years of tax assessment notice
3. Paying 5 bucks for a CBS report to check my credit worthiness

It seems a funny thing right? Banks consider self employed as less credit worthy as someone who is employed. That's how the world works, I can do nothing much about it. But recently, just 2 weeks ago, my application for POSB everyday credit went through and I received the card through my mail.

Plastic plastic - life's fantastic

It was a joyous occasion to me, not because now I have a piece of plastic dangling in my wallet. It's because my concerns - about not being able to borrow money to finance my purchase of property - might not be a problem anymore. It's important to have a good credit history so that institutions can lend you money when you need it. This is definitely the unexpected disadvantage of being a full time tutor. Maybe I shouldn't generalise because it might just happen to me only.

I'm going to apply for a few more cards.


Createwealth8888 said...

maybe POSB read that you save $50K a year. LOL

Buggery said...

Don't go overboard now. Haha
I took the chance to apply for 3 cards before I took a large pay cut to work in another field where I had more passion in.

Still holding onto those cards! But yeah, having problems applying for new ones... zzz

AK71 said...

LP is Jeremy Wong?

Dou said...

Maybe he already got $5 million in the POSB saving account liao haha

la papillion said...

Hi bro8888 and dou,

No lah, I don't keep a lot of money in cash in the bank. Most are in MMF earning a slightly higher interest. If I got 5 mil, really don't need their lousy cards already, haha

la papillion said...

Hi Buggery,

Oh, you too? I think I'm gng to apply 2-3 more, to get all the discounts in places/shops that I frequent.

I seriously don't need credit to buy everyday stuff. Good to have, but not essential :)

la papillion said...

Hi AK,

No lah, boo! There's the default name for their advertising :)

Buggery said...

Haha yeah anyway it makes sense to earn the credit card points. At least can use it to redeem something!

AC88 said...

They dun like to lend us money ............ we can think better so usually we onli get their rebate instead of paying them interest :)

la papillion said...

Hi buggery,

Ya, collect points also no bad. Actually I applied for posb because my wedding needs to be paid by posb/dbs card in order to enjoy some discounts.

la papillion said...

Hi AC88,

Cash rebate you mean...ya, can get some rebates here and there to offset some expenses.

I think the best one is the UOB one card. My gf has it and I had a supplementary card from her. It really gives you cash provided you meet certain quotas for spending. Easily done with 2 person spending one card.

JW said...

My Everyday Card, I didn't see the points until too late and let it expire :(

But imagine I have a stable job, near to $70k in networth at that point in time, and still got rejected by Maybank and HSBC while my fellow graduate and colleague got accepted... I was like huh?

From then on, I didn't bother about HSBC cards anymore. I don't have much time to go to the movies anyway.

Patrick T. said...

Does this mean your budget for treating us is now only limited by the available credit? :)

Enjoy the convenience of your plastic but don't go overboard - I know you won't! :D

la papillion said...

Hi momo,

Oh, I thought for the points, they will send you a letter to tell you that it's expiring? Oh probably won't miss it.

I read your post...I didn't know that you had problems applying too. I'm applying for hsbc, possibly also maybank and see if the credit are more easily available now.

Let you know.

la papillion said...

Hi Pat,

Haha, treats are not that limited by anything :) As long as my monthly targets are met, I can basically spend all the excess, though I usually don't :)

Thanks for the reminder, I won't spend so much one lah, knowing me :)

PanzerGrenadier said...


I guess banks are still conservative in that their credit risk assessment is premised on employees having greater job security and income flows than self-employed.

However, this would change as more people take a different route towards earning a living.

Congrats on getting the POSB everyday card.

Anonymous said...

I have posb everyday. It did not go by point. It is cash dividend, if I remember correctly. Therefore, if I go to spc or watson, I will use the cash dividend to pay for my purchases.


la papillion said...

Hi PG,

Yea, I guess you're right. Well, I can't just stand there and wait for them to realise that more and more people are getting contract based jobs.

I'm really glad that I got the card.

la papillion said...

Hi Elaine,

I think it's cash rebate. I do not seem to be able to find out how many points I got. But I do see in the internet banking that I can log in to redeem comfort vouchers or something.

Got to find out more.