How to Upgrade Your Secured Credit Card to an Unsecured One in the Philippines

Introduction

If youre new to credit cards, chances are your first card was a secured credit card. Its the easiest way to start building your credit history in the Philippines. But once youve built a good track record, the next big step is to upgrade to an unsecured credit card a card that doesnt 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?

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 youre 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 youre ready. Banks in the Philippines typically look at these factors:

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.

2. Good Credit History (6 to 18 Months)

Most banks want to see 612 months of responsible usage. For higher-limit unsecured cards, aim for 18 months.

3. Higher or Stable Income

Some banks require updated proof of income, like payslips, COE, or ITR.

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 banks hotline or visit the branch. Ask if youre 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)

Using the Credit Card Cost Calculator

Before upgrading, you should know how much your credit card debt could cost you if you dont 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 youre 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 youve:

• Built at least 612 months of on-time payments
• Maintained a good credit record
• Met your banks 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 612 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 youve 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.