Credit Score Philippines – Ultimate Guide & Explanation

People who have poor credit may find it difficult to get a loan, find a job, get electricity, rent a house, buy a car, and more. But what exactly is a credit grade? And how does it work? Our article will look at the different aspects of a credit score, how it’s calculated, what affects it and how it can help you.

What is a credit score?

What is a credit score?

Table of Contents

What Is A Credit Score? 

A credit score is a three-digit number. It shows lenders or companies where you can apply for loans or credit your capacity to repay their loan.

Filipinos usually have credit scores ranging from 300 to 850. 850 is the highest grade. As a borrower, it’s best to have as high of a score as possible so that you can take advantage of all the benefits and lower interest rates made available to those with good/excellent credit.

What Factors Influence Your Credit Score?

Credit score factors

Credit score factors

Five factors are used to generate your credit grade. Always bear the following points in mind when working on improving your grade:

Payment history

How frequently you pay bills, how much you refund, and whether or not you pay bills on time.

The owing amount or credit usage ratio

How much of your bank balance are you using? Your bank balance is a representation of the amount of trust your bank has in you. When your score drops too low, you can’t be trusted, which damages your relationship with your financial institution.

Credit history length

The number of years since you’ve established each account.

Credit types used

Whether you’ve used various sorts of credit like a vehicle loan, credit card, or mortgage, this information informs lenders about your ability to manage various types of credit responsibly.

New credit

The frequency with which you have created new accounts. Applying for many credit cards or loans simultaneously might harm your credit score and increase the number of inquiries in your report. Also, it could lower your grade.

What Factors Are Not Considered In Your Credit Score?

  • Age
  • Gender
  • Income
  • Assets
  • Affiliations (ethnicity, race, political affiliation, religion, etc.)
  • Non-credit banking data (investment accounts, checking accounts, savings accounts, prepaid cards, debit cards, and other bank accounts)

How Does The Philippine Credit Reporting & Scoring System Work?

The Credit Information Corporation (CIC) is a Philippine-registered data organization. CIC is the country’s only centralized source of credit data. 

It gathers, consolidates, and disseminates information regarding debt collectors, creditors, and intermediaries with financial institutions in the Philippines.

Cooperatives, banks, insurance companies, and telecommunications providers submit their clients’ credit histories to the CIC. The CIC compiles this data into thorough credit reports, which it provides to authorized lenders.

In the Philippines, there are four accredited credit bureaus or special accessing firms that process credit information:

  • CIBI Information, Inc.
  • CRIF Philippines
  • TransUnion Philippines
  • Compuscan Philippines

Why Is A Good Credit Score Vital?

Why do you need a good credit score?

Why do you need a good credit score?

​A strong credit score is vital, so much so that it’s regarded as a huge deal in love relationships. 

Several studies have revealed that having a higher credit grade increases the probability of finding a lifetime relationship with an individual who carries responsibility and respects debt commitments.

There’s even an internet dating page ( It connects people based on their credit scores and takes dating one step further by adding the element of finances. The service’s slogan is “Good Credit is Sexy”.

Lenders & borrowers follow the same rules. To acquire the bank’s trust, one must demonstrate dedication and responsibility in repaying their debts on schedule. Thus, your report and score can serve as a form of proof to your lender that you’re reliable.

Why Should You Improve Your Credit Score?

  • Simple to obtain a credit card or a loan

You’ll have easier access to loans with a good grade since lenders will regard you as a reliable borrower. You can expect to receive your credit cards or loan much faster than those with bad grades.

  • Lower interest rates and higher loan amounts

When processing loan and credit card applications, lenders need to have an early indication of how creditworthy you might be when assessing anticipated risks.

Having a great credit record will clearly show the lender that you are more trustworthy in paying back whatever amount of money you borrow from them. 

Thus, this will give you better chances of being granted higher loan amounts and additional perks such as reduced interest rates.

  • Reduced insurance expenses

The credit grade may also determine the insurance rate (or premium) you will pay for vehicles, homes, and life insurance. A strong grade might get you a discount on auto or apartment insurance, but a bad score could lead to additional expenses out of your pocket.

  • Better deals on real estate leases

In the Philippines, the significance of a credit score goes well beyond credit cards or loans. It’s also important for negotiating better bargains, such as when renting a house.

If you know this already, you might use it to negotiate a one-month advance payment instead of the standard two-month deposit with a potential landlord.

  • Increased odds of being employed

Prospective employers will do a background check when selecting you for a job. People in the business world usually do this by obtaining a credit grade. The better your credit score is, the more manageable it will be to find a job.

How Can You Check Your Credit Score?

Filipinos can access their information from the CIC or approved credit agencies. Choose “Services” on the site and select “Get a Credit Report”. 

To request a report, you will need to show your identification document (ex: a passport) along with full and accurate details about yourself, including your birth date, full name, and contact information.


If you want to receive the best deal on a home loan, vehicle loan, personal loan, or credit card, checking your credit report and credit score is beneficial. This is a simple step to help improve your credit grade and financial future.

Did you find this article helpful? If so, let’s share this post with others! Thank you for reading!

See also: What is debt? What is bad debt?

Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *