If one plans to apply for a loan from the bank, one should consider the health of one’s credit score in the Philippines first. Even if they meet the qualifications and submit complete requirements, having a low credit score can get their application denied.
So what is a credit score? Banks and other financial institutions use this as a basis for accepting or rejecting loan and credit card applications. To know more information, including how they work and how to check credit score in the Philippines, read more below.
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What is a credit score?
A credit score is a three-digit numerical value determining one’s ability to repay their loans or debts. Banks and financial institutions base this on the information from their credit report, where the higher their credit score, the more creditworthy they are.
Credit bureaus look at five criteria for calculating one’s credit score, which include:
- Credit payment history – refers to whether one pays debts and bills on time.
- Credit utilization rate – refers to how much one uses their available credits.
- Credit history length – refers to the average age when their accounts were opened.
- Type of credit – refers to the type of credit one has, including car loans, credit cards, mortgages, etc.
- New credit – refers to how often they open new credit accounts.
Since there are different factors included in getting approved for a loan or credit card, it’s important to make it a habit to check one’s credit score in the Philippines regularly.
Is there a credit bureau in the Philippines?
Credit bureaus are institutions licensed and accredited by the Philippine government and Credit Information Corporation (CIC) to collect people’s credit information, making it available to financial institutions and credit card companies.
Currently, CIC authorizes these three credit bureaus in the Philippines:
- CIBI Information, Inc.
- CRIF Philippines
- TransUnion Philippines
What is a good credit score in the Philippines?
Before one finds out how to get a credit score in the Philippines, let’s explore what a good credit score should look like.
Credit scores in the Philippines range between 300 and 850, where 850 is the highest score.
For banks and financial institutions to consider one’s loan and credit card application, keeping one’s credit score between 650 and 699 or 700 to 759 is good.
Anything lower than those ranges can be considered low or poor credit score, resulting in denied applications.
How can I fix my credit score in the Philippines?
If one currently has a low credit score, there’s no need to panic because there are steps one can take to fix and maintain it at a good range, such as:
- Paying credit card bills and loans on time.
- Spending within your credit card limit.
- Avoiding successive credit card or loan applications.
It can take several months or years to improve one’s credit score. This can depend on one’s financial situation, consistency, and commitment to fixing it. To know whether one’s credit score is improving after applying the above methods, below is a short guide on how to check credit score in the Philippines.
Can I check my credit score in the Philippines?
If you’re wondering how to know your credit score in the Philippines, CIC’s Direct-to-Consumer (D2C) Program allows online and walk-in access from accredited Accessing Entities (AEs).
Since each AE will have specific requirements for requesting your credit report, it’s best to contact your AE. You can refer here for a complete list of their names and contact numbers.
If you prefer to go through the walk-in process, check which nearest financial institutions are accredited AEs here.
Aside from the two methods, you can request credit reports from CIBI Information, Inc. via the Lista app. To access it, follow the steps below:
- Download the Lista app on your smartphone.
- Register for an account, and log in.
- Tap the Your Credit Score button on the home screen.
- Then, tap Request Now.
- Read the Terms and Conditions before ticking the box. Then, tap Proceed.
- Enter your personal information on the Know Your Score page before tapping Submit.
- Pay PHP199 for your credit report.
- Upload your valid ID and provide the details before tapping Confirm Details to proceed to the Liveness Check.
- Once done, tap Check My Score to complete your request.
Does GCash affect my credit score?
GCash has GLoan, GGives, and GCredit features where users can borrow money for emergency loans or online purchases. Each feature has a credit limit and requirements for qualifying. Like bank loans, users will have to repay the borrowed amount with interest later.
Since lending or credit institutions can access GCash users’ financial records, missing or skipping loan payments can affect their credit score in the Philippines.
To prevent this, users can use GCash’s auto-deduction feature to pay their dues on time and avoid additional fees.
Maintaining a good credit score in the Philippines is good practice because it can affect one’s ability to get loans, credit cards, and other financial opportunities. The CIC has also made requesting a credit report easier through online and walk-in processes, so one can check whether they’re maintaining a healthy and accurate credit score or if there’s room for improvement.