How to Upgrade Your Secured Credit Card to an Unsecured One
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How to Upgrade Your Secured Credit Card to an Unsecured One in the Philippines
Introduction
If you’re new to credit cards, chances are your first card was a secured credit card. It’s the easiest way to start building your credit history in the Philippines. But once you’ve built a good track record, the next big step is to upgrade to an unsecured credit card — a card that doesn’t require a deposit.
This guide will explain how secured credit cards work, why upgrading matters, and the exact steps to get approved faster.
What Is a Secured vs. Unsecured Credit Card?
Feature
Secured Credit Card
Unsecured Credit Card
Deposit Required
âś… Yes (collateral)
❌ No deposit needed
Approval Chance
High, even for beginners
Stricter, based on creditworthiness
Credit Limit
Equal to your deposit
Based on income & credit score
Best For
First-time users or rebuilding credit
Users with established credit history
Examples
BPI Secured, RCBC Instacard, Security Bank Fast Track
BDO Visa Gold, Citi Cashback, HSBC Red
Example: If you deposit ₱20,000 for a secured credit card, your credit limit will likely be ₱20,000. With an unsecured credit card, the bank trusts you enough to lend you that amount — no deposit required.
Why Upgrade to an Unsecured Credit Card?
Upgrading has several benefits:
No need for deposits — Your money is freed up for other uses.
Higher credit limits — Perfect if you’re making larger purchases.
Better rewards & perks — Cashback, points, miles, and promos.
Stronger credit profile — Helps with future loans and bigger cards.
When Can You Upgrade Your Secured Credit Card?
Before applying for an upgrade, make sure you’re ready. Banks in the Philippines typically look at these factors:
âś… 1. Consistent On-Time Payments
Pay at least the minimum due every month. penaltiesⓘ and interest, redu?" title="Loan Delinquency occurs when a borrower frequently misses monthly amortizations, causing the loan to fall behind schedule. Delinquent loans accumulate penalties and interest, redu?">Late paymentsⓘ lower your chances.
âś… 2. Good Credit History (6 to 18 Months)
Most banks want to see 6–12 months of responsible usage. For higher-limit unsecured cards, aim for 18 months.
âś… 3. Higher or Stable Income
Some banks require updated proof of income, like payslips, COE, or ITR.
âś… 4. Positive Relationship with the Bank
If you maintain savings, payroll, or other accounts, you have better approval odds.
Step-by-Step Guide to Upgrade Your Secured Credit Card
Step 1: Build a Solid Credit Record
Use your secured card regularly for small, manageable purchases.
Always pay on time and in full whenever possible.
Step 2: Contact Your Bank
Call the bank’s hotline or visit the branch. Ask if you’re eligible for an upgrade or conversion.
Step 3: Submit Your Requirements
Most banks will ask for:
Valid government-issued ID
Latest payslip or proof of income
Updated contact information
(Some banks may not require income documents if your secured card history is excellent.)
Step 4: Bank Review & Credit Check
The bank will check:
Your payment history
Your current deposit balance
Your overall credit score
Step 5: Approval & Refund of Your Deposit
Once approved:
Your secured card will be converted to an unsecured card.
Your deposit will be refunded or used to offset your balance.
Banks in the Philippines That Allow Secured-to-Unsecured Upgrades (2025)
Before upgrading, you should know how much your credit card debt could cost you if you don’t pay in full. Use our Credit Card Cost Calculator to estimate your monthly payments and interest charges.
This helps you plan better and avoid falling into debt when transitioning to an unsecured card with a higher limit.
Common Reasons Why Banks Reject Upgrade Requests
1. Missed or Late Payments
Even one late payment can affect your eligibility.
2. Too Short Credit History
If your secured card is less than 6 months old, your upgrade will likely be denied.
3. Insufficient Income
Some banks require updated income documents for unsecured cards.
4. High Utilization Rate
If you’re always maxing out your credit limit, banks may see it as risky.
Tips to Get Approved Faster
Use only 30% or less of your credit limit
Set up auto-debit payments to avoid late dues
Keep your deposit untouched until approval
Maintain other accounts with the same bank
TL;DR — Quick Summary
Upgrading from a secured credit card to an unsecured credit card in the Philippines is possible if you’ve:
Built at least 6–12 months of on-time payments
Maintained a good credit record
Met your bank’s income and usage requirements
Once approved, your deposit is refunded and you get higher credit limits, better rewards, and more flexibility.
FAQs
1. How long before I can upgrade my secured credit card? Usually 6–12 months, but some banks may require up to 18 months.
2. Will I automatically get my deposit back? Yes, once your card converts, your deposit is refunded or credited to your account.
3. Do I need a high income to upgrade? Not always. If you’ve been a responsible payer, some banks waive income requirements.
4. Can I apply for an unsecured credit card from another bank instead? Yes! If your secured card history is good, you can apply elsewhere without upgrading.
5. Will upgrading affect my credit score? No — in fact, it can improve your score if you continue to pay on time.
