Banks and financial institutions got their eyes on every financial move we make.
You’ve probably heard about credit score in the Philippines (yes, they exist and we use them). But is it really a big deal as people make it out to be? Well, guess what — yes, it is.
Kung akala mo extra layer of financial jargon lang ‘yan, credit score is actually something we should start caring about, lalo na if you own a credit card or have several loan accounts.
Ayon sa Republic Act No. 9510, a.k.a. the Credit Information System Act (CISA), the Credit Information Corporation (CIC) holds the key to our credit info, and pretty much the entire financial story of everyone.
Meaning, they’ve got the ‘goods’ on your ‘creditworthiness’. And one crucial aspect of this is your credit score.
So… what exactly is a credit score?
Much like in other countries, the CIC provides credit standing and various financial reports that show you your creditworthiness, including credit scores.
A credit score works exactly like a report card you get in school. But instead of being awarded with gold stars, bibigyan ka nila ng score between 300-850 to assess your ability in handling debt.
So kung iniisip mo na banks don’t judge a book by its cover, well, truetoo naman. They do base their decisions on giving you a credit card or loan using your credit score because it actually tells them if you’re a responsible borrower or not.
Siyempre, the higher your score, the better.
A high credit score, or anywhere ranging between 700-850, opens the doors to favorable loan terms and credit card interest rates. This also guarantees fast approval from banks and lenders.
On the flip side, fair and poor credit scores (649 and below) may mean that you’re not juggling your financial commitments as well as you could be.
Ayon sa Republic Act No. 9510, a.k.a. the Credit Information System Act (CISA), the Credit Information Corporation (CIC) holds the key to our credit info, and pretty much the entire financial story of everyone.
While this signals you might be kind of a risk, lagi naman may chance to turn things around. You can start with making your payments on time (and in full) or calling your bank to ask for a debt restructuring para mas manageable for your budget.
The good news
You can now keep tabs on your credit score right from your smartphone, thanks to Lista!
So if need mo ng extra validation at confidence to finally apply for the loan or credit card of your dreams, eto na ang sign mo!