How to Know Your Credit Score in the Philippines
Last updated: November 15, 2022
- If you are planning to borrow money for housing loan or a car loan, it is important that you take care of your credit score.
- If you have a bad rating, you will not be able to borrow money, especially from banks.
- For small loans, getting approved is a lot easier than that with large loans from banks, one example is Digido.
- You have a chance for a Digido loan even with a bad credit history, but you have to pay it back on time anyway.
- It will improve your credit rating.
A credit score is not a new thing. It is a measurement of your “credibility” as a borrower. The higher your score, the more likely you will get approved for a loan or credit card.
You can achieve and maintain your good credit standing by paying bills on time and only applying for loans that you need.
In countries like the United States, there are several facilities or organizations that gather and score its citizens as far as credit is concerned.
In the Philippines, only a few people know about their credit information or credit standing. Verification is done through the Philippine credit scoring system. What many Filipinos do not realize is that credit score is something that has existed for a long time.
Today, you will learn the basics of credit ratings in the Philippines and why this is important.
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Credit Score, Credit Report, and Credit History – What’s the Difference?
There are several terms that people may find confusing. In this section, we will define the differences between good credit score, report, and history.
1. What is Credit Score Philippines?
A credit score is a three-digit figure which determines your creditworthiness. There is no single global standard as to how the ratings are made. Some institutions use letters, while some use numbers. No matter what they use, your goal is to have a high rating.
A high credit score means that you are trustworthy in the eyes of banks and creditors, and that you are a good borrower who pays your debts.
On the other hand, if your credit standing is low, it means that you have a history of not paying your loans or bills on time. If a lender sees this, he is not going to approve your loan or credit card.
There are many factors that affect your credit information in the Philippines, such as:
– Annual income
– Borrowing history
– Timeliness of payments.
Not all financial institutions use the same factors, and not all of them use the same formula. What matters here is that you can get a good credit rating in the Philippines by paying your debt on time.
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2. What is Credit Report?
A credit report is a document which contains your credit score. It also includes details about you, plus your credit history if the financial institution needs it.
Here are some of the details you will find in a credit report:
- Your name, address, gender, age, address;
- Details of your credit line as if you have a credit card
- Details about your public records such as if you filed for a bankruptcy
- List of institutions that have asked for your credit report in the past
Different credit reporting bureaus have different data reporting methods.Not all of them have the same access to your personal and public financial history, so this information is going to vary.
3. What is Credit history?
Your credit history refers to your credit activity, the credit cards and loans that you have and whether you’re paying them on time. As the term implies, it refers to your historical behavior of using credit and paying loans in the past.
Did you pay on time and in full or did you bailout?
The credit history is part of the report. If you borrowed, for example, ₱100,000 five years ago and paid only ₱50,000, this history will be included in your financial credit history. Once a lender sees this, the natural tendency is for the lender to say that you are a high-risk individual.
Some credit history reports also show your bank accounts, average daily balance, spending habits with your credit card, and many more. The credit history is used to determine your final credit score in the Philippines, and it also tells a lender whether you are worthy of another credit or not.
What factors affect your credit score?
These factors affect your credit standing, so you should take note of these:
- Payment history: banks and private lenders will take a hard look at your credit payment history – how often do you pay, how much you’re paying, and if you’re paying on time.
- Types of credit that you use(d): refers to your personal loans, credit cards, housing loan, car loan, if any.
- Length of your credit history: refers to how long you’ve had your credit card or loans
- The amount of credit that you owe: refers to the amount that you owe, whether on loans or credit cards. The higher the amount, the less likely you’ll be granted a new loan or credit.
- Applications for new credit: your credit report will take note if you have pending applications for new credit, and how often you are applying for new loans. Having new credit all at once is not a good look.
Why do I need a good credit rating?
You need to have a good credit rating in order to have a better standing and relationship with banks and financing institutions.
Having a good credit score gives lenders the confidence to lend money to you or give you new credit. It means that you are a good payer who does not miss a payment cycle. Having a positive credit standing allows you to have higher loan amounts at more favorable rates. Your bank may opt to waive your annual fees if you’re paying on time, too.
A good credit score also signifies financial stability. It means that you are responsible enough to have a stable income and not rely on loans for your daily expenses. Applying for new loans or credit cards every now and then is not a great look.
Your credit history will also affect your chances of getting insured. If you have a favorable credit score, insurance companies will offer you better premium rates on your car or life insurance, for example.
Potential employers may also look at your credit history during background checks. A good credit score will increase your chances of getting hired.
How Can I Get My Credit Report?
Now, let us talk about how to get your credit report in the Philippines. In the United States, there are several credit reporting agencies that you can rely on. But how can I check my credit score here in the Philippines?
One agency that you can trust is the Credit Information Corporation (CIC). To get your CIC credit report, go to the CIC website and register for an account. They will guide you how to check credit history in the Philippines.
You must complete the verification process, also known as Know Your Customer, and then proceed with the online application. The thing is that you have to personally visit the physical office of CIC in Makati City to be able to get your credit data if you do not qualify for the online reporting.
Another company where you can get your credit score is called TransUnion. It is a global entity, and it is also the first credit bureau of the Philippines. If you want to get an idea on your credit behavior, you can go to the TransUnion website and request for a report.
TransUnion gives out two types of credit score reports. The first one is business reporting, which is for insurance companies, banks and lenders. On the other hand, a personal report will show you your personal credit score and history here in the Philippines.
Credit scoring system in the Philippines
The credit score system in the Philippines ranges from 300 to 850, with 850 being the highest score you can possibly attain. If your score is around 800 to 850, it means that your credit standing is exemplary.
If you have a score ranging from 700 to 799, you have a good credit standing. A number between 650 to 699 is a fair score; a number between 600 to 649 is a poor score.
Anything below 600 means a bad credit score. If your score is 600 and below, you will have a hard time getting approved for loans, applying for credit cards, and even getting insurance policies.
To maintain healthy credit, try to keep your credit score at 650 and above.
What is a Good Credit Score in the Philippines?
There is no single number that can represent a good credit score in Philippines. Some lending services use numbers higher than 3,000, some higher than 600, and some use letters. To know what a good credit history is, you have to contact the reporting bureau of your choice. Generally speaking, an excellent credit score is above 750.
How to Improve Your Credit Score in the Philippines
Once you have received your credit information and found out you got a low grade, the next step is to make sure that you make an effort to improve your credit score in the Philippines.
Here are some tips:
1. Pay your bills on time – institutions report to credit bureaus whether you are paying your utilities on time or not. This includes electricity, gas, water, phone bills, internet bills, credit card bills, and more.
2. Keep debts low – do not borrow money so often and in large amounts.. But if you do, make sure you pay them on time. If you are not paying the full amount due, make sure that the amount you owe is small.
3. Do not borrow money or apply for credit cards very often – Doing so will give the impression that you are heavily reliant on credit. Do not apply for different types of loans or credit at once. Before you apply for a new credit, make sure that you really need it.
4. Do not close unused credit cards – if you have credit cards that you are not using, keep them open, but make sure you pay your annual fees and that they do not cost you a lot of money to maintain.
It takes a while to build a good credit score in the Philippines. The trick here is that you maintain a habit of being finance responsible. Do not take money that you cannot pay. If you get a loan or if you get approved for a loan or credit cards make sure you pay what you owe before the due date.
How to Check My Credit Score in the Philippines
Another company where you can get your credit scores is called TransUnion. It is a global entity, and it is also the first credit bureau of the Philippines. Just go to the website and get your report in the Philippines.
There are 2 types of data here. The first one is a business reporting, which is for insurance companies, banks and lenders. If you want to know your credit scores and history in Philippines, you have to select a personal report. Loan companies check borrowers using credit scoring.
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How to Improve Your Credit Score Philippines
Once you have received your credit information and got a low grade, the next step is to make sure that you make an effort to improve your credit score Philippines.
Here are some tips:
1. Pay your bills on time – institutions report to credit bureaus whether you are paying your utilities on time or not. This includes electricity, gas, water, phone bill, and many more.
2. Keep debts low – do not borrow large amounts. If you do, make sure you pay them on time. If you are not paying the full amount due, make sure that the amount you owe is small. Do not type in many different types of credit at once.Before you apply for a new credit, make sure that you really need it.
3. Do not close unused credit cards – if you have credit cards that you are not using, keep them open, but make sure you pay your annual fees and that they do not cost you a lot of money to maintain.
It takes a while to build a good credit score in Philippines. The trick here is that you maintain a habit of being finance responsible. Do not take money that you cannot pay. If you get a loan or if you get approved for a loan or credit cards make sure you pay what you owe before the due date.
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Loans with a Bad Credit Score in Digido
Just because you have a bad score does not mean you cannot get money. You can still get approved, especially in facilities like Digido.
The good thing about Digido financial corporation is that it is an honest company. It does not exploit a borrower with a bad credit information by inflating the interest. Everyone is treated fairly here.
Here are the requirements of Digido:
- You must be a Filipino citizen from any part of the country between 21 and 70 years old;
- You must show proof of identity and proof of income.
As you can see, the requirements are really minimal. The best part is that Digido applications have so many benefits compared to traditional lenders or banks.
Here are the features of Digido:
- Low interest and high credit limit
You will not pay a higher interest rate just because your score Philippines is low.
- Online application
You do not have to visit a physical location to apply for a loan. Everything is online. You will fill out the form online and also upload your documents.
- Fast approval
Loans in Digido work in as short as 24 hours; no need to wait for several weeks to be approved. The credit limit for the first loan will be 10,000 pesos and 20,000 pesos for future loans.
Whether you have a high or low credit score or or you are blacklisted from Philippine banks, you can rely on Digido. All you get here is convenience, and you will not be exploited like you would if you applied for a loan from other conventional financial corporations. However, you still have to pay your bills on time. Otherwise, the facility will also rate you with a low score, and you will not be able to borrow next time. If you have a Digido unpaid loan, you can extend it or contact the company on (02) 8876-84-84 and they will offer you a solution depending on your situation. Immediately after repayment you can apply for a new credit. Your payment should be made on time, and then the limit will increase. You can also make early repayment of an existing loan.
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