- 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 Robocash.
- You have a chance for a Robocash 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 and Credit Report in the 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. 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 score. 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 score 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 credit score, credit report, and credit history.
1. Credit Score
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 score. 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, and that you are a good borrower who pays his debts.
If your credit 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.
There are many factors that affect your free credit report 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 by paying your debts on time.
2. Credit Report
A credit report is a document. This is where your credit score is reported. 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 reporting bureaus have different report types. Not all of them have the same access to your personal and public financial history, so these reports 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 credit 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, and it also tells a lender whether he should lend you money or not.
Why Is a Credit History Important?
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 client. 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 credit 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 score 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 report if you do not qualify for the online report.
How to Know Your Credit Score in the Philippines
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. Just go to the website and get your credit report in the Philippines.
There are 2 types of reports here. The first one is a business report, which is for insurance companies, banks and lenders. If you want to know your credit score and history, you have to select a personal report.
What is a Good Credit Score?
There is no single number that can represent a good credit score. Some institutions use numbers higher than 3,000, some higher than 600, and some use letters. To know what a good credit score 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
Once you have received your credit score and got a low grade, the next step is to make sure that you make an effort to improve your credit score.
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 of money. 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 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. The trick here is that you maintain a habit of being financially responsible. Do not borrow money that you cannot pay. If you borrow money or if you get approved for a loan, make sure you pay what you owe before the due date.
Loan with a Bad Credit Score in Robocash
Just because you have a bad credit score does not mean you cannot borrow money or get approved for a loan. You can still get approved, especially in facilities like Robocash.
The good thing about Robocash is that it is an honest company. It does not exploit a borrower with a bad credit score by inflating the interest. Everyone is treated fairly here.
Here are the requirements of Robocash:
- You must be a Filipino citizen 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 Robocash applications have so many benefits compared to traditional financial institutions.
Here are the features of Robocash:
– Low interest – you will not pay a higher interest rate just because your credit score 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 Robocash can be approved in as short as 24 hours; no need to wait for several weeks to be approved.
Whether you have a high or low credit score, you can rely on Robocash. 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 institutions. 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 any money next time. If you have a Robocash 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.
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