- 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.
Credit Score Philippines
A credit score is not a new thing. It is simply a measurement of your “credibility” as a borrower. The better your score, the more likely you will get approved for a loan or credit card. In advanced 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, few people know about the credit information. 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 history and why this is important.
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. Credit Score Philippines
This is a number that represents your grade. In school, you have a report card that indicates your grade per subject. In most institutions a grade of A+ means “the best” and a rating of F means poor.
The same goes with a credit scores in the Philippines. 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 scores mean that you are trustworthy, and that you are a good borrower who pays his debts.
If your score is low, it means that you borrow money but do not pay. If a lender sees this, he is not going to approve your loan or credit card.
There are many factors that affect your free credit nformation in the Philippines as the following:
· Annual income;
· Credit 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 get a high score Philippines by paying your debt on time.
2. Credit Report
A credit report is a document. This is where your score is reported. It also includes details about you, plus your credit history if the financial institutions 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 types. Not all of them have the same access to your personal and public financial history, so these nformations are going to vary.
3. Credit history
The credit history refers to your ability to pay your debts. As the term implies, it refers to your historical behaviour when you borrowed money 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 5 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 he should lend you money or not.
The Сredit Score Importance for a Loan or Credit Card
Your credit history is either positive or negative. It is important because lenders and insurance companies use this as a basis to make a decision. If you have a negative credit history, insurance companies may not accept you as a consumer. Sometimes, even employers will not want to hire you.
How Can I Get My Credit Report?
Now, let us talk about how to get a report in the Philippines. In the United States, there are several credit reporting agencies that you can rely on. But what about the Philippines?
One agency that you can trust is CIC. To get your credit report, just 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.
How to Know Your 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.
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 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.
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, 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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