{"id":10512,"date":"2020-03-12T12:28:54","date_gmt":"2020-03-12T04:28:54","guid":{"rendered":"https:\/\/leasing.dmcihomes.com\/?p=10512"},"modified":"2023-01-27T09:28:09","modified_gmt":"2023-01-27T01:28:09","slug":"philippines-credit-scores","status":"publish","type":"post","link":"https:\/\/leasing.dmcihomes.com\/blog\/philippines-credit-scores\/","title":{"rendered":"Everything You Need to Know About Credit Scores in the Philippines"},"content":{"rendered":"

As we entered the new year, a lot of you probably think that by now, you should have already achieved your dream car or dream house.<\/span><\/p>\n

By now, you’ve certainly fantasized about that independent lifestyle and when you’re going to achieve that status at this point. You’ve certainly said to yourself that you would’ve attained something at a certain age or stage in your life.<\/span><\/p>\n

\"achievePhoto courtesy of <\/em><\/span>Pixabay<\/span><\/a> via Pexels<\/span><\/em><\/p>\n

Despite having the liquidity to purchase some of those items you want, it is still better to split them into parts than to pay them as whole to keep your funds on track and to have that nice cash flow that could pay for your other wants and needs. This way, you’re sure on your way toward <\/span>achieving financial stability<\/span><\/a>.\u00a0<\/span><\/p>\n

Usually, when this happens, it is almost a common practice to apply for a loan or credit from financial institutions. This gives you more financial flexibility when you only have to pay the bank or lending companies in installments, plus interest depending on which bank you approach. Sound convenient?<\/p>\n

While all of this sounds easy and ideal way to be granted the loan you’re applying for, you still have to <\/span>pass a credit investigation<\/span><\/a> to even qualify for one. The one thing that you need to pass the investigation with is to have a very good credit score. Now if you’re applying for a loan for the first time, this is what you need to know about credit scores and how to boost your credit score to get that approval.<\/span><\/p>\n

What exactly is a credit score?<\/h3>\n

\"creditPhoto courtesy of <\/em><\/span>energepic.com<\/span><\/a> via Pexels<\/span><\/em><\/p>\n

A credit score is a number that is used in certain countries that aim to predict your chances of meeting financial obligations, such as paying back a loan. The higher your score, the easier is your access to various financial services and credit options and as well as faster approval for your application to them. It opens a lot of doors for borrowers to different loan opportunities, from financial institutions to credit <\/span>app<\/span>lications, and boosts their chances of approval.<\/span><\/p>\n

On the other hand, many countries still don’t use the credit score system. If they do, many don’t adhere to the system being used in the US and Canada, which is Fair Isaac Corporation (FICO). While here in the Philippines, the one who handles credit scoring is the <\/span>Credit Information Corporation<\/span><\/a> (CIC). However, there is no centralized credit reporting just like in the US, but that doesn’t mean that you shouldn’t watch out for your score or even learn how to improve your credit score for that matter.<\/span><\/p>\n

Banks nowadays tend to take a look at your transactions and bank statements as well as if you’re meeting payments; thus, summarizing more or less what your credit score is.<\/span><\/p>\n

What makes up a good <\/b>credit score in the Philippines<\/b>?<\/b><\/h3>\n

Now that you know what a credit score is, the next question you have in mind is what makes up good credit and how you can build up your credit score. Here are <\/span>five factors that determine your credit score<\/span><\/a>, which include the following:\u00a0<\/span><\/p>\n