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#CreditConfidence: How to build your credit score from scratch

It’s gonna be quite a journey. But rest assured the rewards awaiting are truly worth it.


#CreditConfidence: How to build your credit score from scratch

Let’s address the elephant in the room first: having credit is a privilege, not a right. That’s why it’s essential to approach it with responsibility and mindfulness. Kasi mahirap na ‘pag nasira ang pangalan mo diyan, and that’s something you may want to avoid in the future.


Like domino effect, taking great care of your credit standing spreads like wildfire to every aspect of your finances — from applying for a loan, renting an apartment, or even getting a job (in the States, especially), your credit plays a crucial role in determining your financial health.


While building your credit score from scratch can seem daunting, it’s entirely achievable with the right knowledge and habits. Here are a few tips to get you started on improving your credit score:


  1. Consider getting a secured credit card. Opening a new line of credit that aligns with your current annual salary may be the norm. But if you’re just starting, applying for a secured credit card or taking out a small loan establishes a credit history. This shows lenders that you can manage credit responsibly.

  2. Pay your bills on time. Making regular timely payments is one of the most crucial factors in building and maintaining a good credit score. Set up automatic payments or reminders to ensure you never miss a due date.

  3. Aim to keep your credit balances low. Keeping your credit utilization low shows banks that you’re not overly reliant on credit and can manage your finances responsibly.

  4. Diversify your credit mix. Hindi lang credit cards at loans ang maaari mong apply-an to get some extra leverage*.* Now more than ever, there have been plenty of borrowing options available in the market, e.g. fast loans and revolving credit products offered by fintech apps. Having a mix of different credit accounts significantly impact your credit score because it demonstrates that you can handle various types of credit without question.

  5. Monitor your credit report. Regularly check your credit report to ensure that all information is accurate and up-to-date. Reporting any errors or discrepancies ASAP can help prevent any negative impact on your score.

Mahirap lang sa una magsimula. Hangga’t consistent ka at maayos ang paggamit mo ng mga credit accounts mo, you have nothing to worry about. Remember, building and boosting your credit score takes time and dedication — but it’s all gonna be worth it! Malay mo, you’re on the path na pala to unlock better financial opportunities.


Want to know your credit progress? Get your credit score and report for only P199 on the Lista app!

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