Credit Report Philippines Updated on July 2024

Got your loan application declined again?

You might wonder why banks have turned their backs on you when you need them the most. While you may need to get quick cash now, the problem with your loan application could have been rooted in something that started long ago: your credit history.

There are various reasons why your past credit behavior affects your current financing status. You might not be aware of it, but the statement—you reap what you sow, is relevant to a personal loan application. That’s why you must act diligently with your financial obligations. 

Your credit report is more than just a simple document. It is a revelation of your past repayment performance. An ugly report indicates your poor capability to handle another financial responsibility.

Meanwhile, a favorable credit report highlights your potential for a higher loanable amount. This is how crucial your on-time repayment is. It paves the way toward a brighter financial plan. 

Do you want to achieve the best credit report in your lifetime? Do you have plenty of questions on how a credit history works? Don’t worry. We got the answers you need. 

Why is a Credit History Important?

Your credit report is one of the biggest factors prominent banks and other authorized moneylenders use when evaluating your creditworthiness. If you get an unsecured loan, especially from banks such as BPI and BDO personal loans, the bank will try its best to determine whether you can pay the loan with the charged interest.

Of course, no lender will approve a loan to someone who did not pay their past loans.

A credit history is like a report card for grown-ups. It shows how well you handle borrowing money and paying it back. In addition, it affects your future financial goals, such as the following scenarios.

Getting Loans

When you want to apply for a loan to make a big purchase, like a house or a car, banks and licensed moneylenders look at your credit history. They trust you more if you have a good history. Your credit history reflects that you’re a less risky borrower. That’s why they are more likely to approve your loan.

Better Interest Rates

A good credit history often gets you lower interest rates. This means you pay less interest over time for things you buy with a loan. Therefore, you can save more funds to settle the principal cash loan. 

Renting a Home

Landlords often check your credit history before letting you rent an apartment. They want to see if you pay your bills on time. If your credit history indicates poor financial management, approving your lease is least likely. 

Applying for a Job

Some employers check credit histories to see if you’re responsible for money. They believe it reflects on your overall responsibility. If you’re excellent at handling your finances, you’re most likely an accountable person when it comes to work. 

Better Loan Deals

With a healthy credit history, you might get the best end of any agreement, like insurance. Companies see you as less risky with a positive credit report, offering you lower prices and favorable packages. 

A good credit history can mean something other than an excellent one. But still, having a better history can help you in many ways. Therefore, it makes your life easier and less expensive.

What is the Credit Report Definition?

A credit report is a detailed record of your financial history. It records your past debts and how you have dealt with them. 

Were you a responsible payer? 

Can you meet all the due dates, or did you default? 

Banks and trusted money lenders can check your credit report. They must determine whether you are worth the risk. These legit loan providers can’t repossess anything from a borrower who took out an unsecured loan.

Wait. Does this mean someone is keeping your credit records, and any bank or financial institution can view your financial data?

Is it even legal? Yes. It is legal according to Republic Act No. 9510, also known as the Credit Information System Act. This law mandates banks, other authorized moneylenders, and financial institutions to submit their borrowers’ credit records into a centralized system that the Credit Information Corporation (CIC) keeps. The CIC collects all the documents and makes them available to the lender to whom you have applied for a loan.

In the Philippines, your credit report shows how well you manage your finances, especially when taking out and repaying debts. Often, it includes the following confidential information. 

Personal Information

Your details are evident in your credit report’s content, including your name, address, and other essential information.

Credit Accounts

It lists all your loans and credit cards, including past and current statements. Banks and legal moneylenders can see how much you owe from the past and currently. Also, it shows whether you pay on time regularly. 

Payment History

This part of your credit report discusses your payment records. It highlights more details about whether you have made your payments on time or missed any.

Public Records

As the name implies, it is open to the public. It includes any serious financial issues that you have encountered, such as bankruptcies or court judgments related to your finances.

Inquiries

This part of your credit report shows any data on who has checked your credit report and when. It can be yourself, the bank, or any licensed moneylender in the Philippines. 

In the Philippines, having a good credit report is essential. It helps banks and legit money lenders decide if you are worth lending. In addition, it affects the interest rates they offer you. A good credit report makes getting loans and other financial services easier.

How does this help both the Lender and the Borrower?

A good credit report guides the lender and the borrower in several ways. 

Banks and Licensed Money Lenders

Trust: Loan providers, like banks and legal money lenders, use credit reports to determine your reliability. They trust you more if you have a good credit report. Your report proves that you can pay back loans on time.

Risk Management: A credit report helps lenders decide how risky it is to lend you quick cash. If your report is good, they feel safer lending to you because you are less likely to miss payments. However, if you have a poor credit report, expect your loan denial.

Decision Making: With a credit report, lenders can quickly decide whether to approve your loan or credit card application. They can easily judge your financial management. Therefore making their job easier and faster.

Borrowers

Better Loan Terms: With a healthy credit report, you can take out quick cash loans with lower interest rates. Banks and licensed money lenders trust that you can handle the repayment well. Therefore, you will pay less interest in the long run.

More Opportunities: A positive credit report makes getting approved for any loan, credit card, or apartment renting easier. It opens up more financial opportunities than you can imagine. 

Building Trust: With a good credit report, you build trust with legit moneylenders. Your previous favorable records indicate that you are indeed trustworthy. That’s why you can get better deals and financial services in the future.

Sample Scenario

Let’s say you got a loan from Lender A. Lender A will report your repayment activities with them to CIC. When you apply for a loan from Lender B, it will request a copy of your credit report from CIC to review your payment history and past credit details, including your loan details with Lender A. This information lets Lender B decide whether to approve or reject your application. It prevents the lenders from taking too much risk with borrowers who have been delinquent payers.

A credit report helps loan providers by giving them a clear picture of your financial reliability, making it safer for them to approve your loan. A good credit report leads to advantageous loan terms and more economic opportunities for borrowers. Thus creating a win-win situation for both sides.

Does this also Benefit the Borrower?

Since reputable money lenders now have an easier way to assess borrowers’ creditworthiness, they devised more unsecured loans for more borrowers to choose from. With better fair competition in the lending industry, the interest rates are now more competitive.

Easier Access to Loans

With the easy accessibility of checking your creditworthiness, licensed moneylenders can offer various types of loans. Borrowers have more choices. You can apply for an auto loan, mortgage loan, or personal loan when you need quick cash based on your current financial need. 

In addition, with your positive credit report, you can get unsecured loans. These loans don’t need collateral, like a house or car. It’s less risky because you don’t have to put your property on the line. Plus, you can spend your instant cash loan wherever you need it. 

Better Interest Rates

Banks and trusted money lenders are driven to attract loan applicants. However, legit moneylenders offer better and more competitive interest rates. Therefore, the total interest you pay throughout the loan is less than that of others. 

Furthermore, with the number of moneylenders competing, you can find fairer loan products and services more suited to your needs. You don’t have to risk a property to get approved. Or you don’t need to spend your quick cash solely on car expenditures. A personal loan offers versatility to whatever you need fast cash. 

Benefits of Competition

More competition means banks and moneylenders try to win borrowers over. They offer better loan services and terms to attract you. As a result, you can experience high-quality customer service and more flexible loan options.

In comparison to other loan providers, licensed money lenders are more transparent. They offer detailed discussions about their loan terms and conditions to stand out in a competitive market. It helps you understand what you’re signing up for.

Reputable money lenders have an easier way to assess your creditworthiness. They create more loan options, including unsecured loans. It leads to better competition in the lending industry, resulting in more competitive interest rates and better deals for you. It benefits borrowers by giving them more choices, fairer terms, and better services.

Still worried with lenders sharing your information in a centralized system for other lenders to access?

What about your personal information, banking details, assets, and stocks? There is no need to worry, as the financial institutions only submit your name, the credit facility, and payment activities.

What Loan Providers Share

Banks and trusted moneylenders only share your name for personal details. But it includes information about your credit facility, such as the type of loan or credit you have, like a car loan or credit card. The most vital part of what loan providers record is your payment activities. Legal money lenders share if you pay on time or miss payments.

What Loan Providers Don’t Share

Although banks and legal money lenders disclose your name, they do not share your address, phone number, or other personal details. In addition, your banking details, such as your bank account numbers and transaction history, are kept private. Most importantly, information about your house, car, stocks, assets, or other investments is kept private.

Banks and legal moneylenders are careful with your information. They prioritize your privacy protection. That’s why they only share vital details to assess your credit. In addition, your credit report is like in a safe vault. It is under strict security measures that keep all the facts about you safe, secure, and private. 

How are Good Credit Reports Created?

Now that your credit report can make or break your loan application approval, you must also learn how to keep it in good shape.

Creating a good credit history is not an overnight miracle. 

It takes years of discipline. Also, most financial institutions may reflect this negatively if you do not have a credit history. It means they have nothing to evaluate your payment behavior.

You must refrain from making late repayments to prevent burning down your credit report. 

All payments, whether on time, late, or default, will be reported to CIC. The worst is to have a bankruptcy and tax evasion record, which will be on your record for five or more years. So, to keep your credit report in good shape, pay your debt diligently on time.

Keep away from loan sharks. 

Illegal moneylenders do not use credit reports. Thus, they are not competitive, and their interest rates are skyrocketing. No matter how diligently you pay your loan from a loan shark, it won’t be reported to CIC.

Build Long-Term Relationships.

Maintain stable accounts. Always keep your bank accounts, credit cards, and loans active for a long time. Longevity with financial institutions can improve your credit report. It indicates that you’re trustworthy for the bank and for the fast cash loan approval. 

Monitor Your Credit Report

Just like your physical and mental health, regularly check your credit report. Sometimes, although very rare, errors or discrepancies occur in a credit history. You can get a copy from credit bureaus like the Philippines Credit Information Corporation (CIC).

Take time first to ensure your credit report is back in good condition before applying for a loan to have a higher chance of approval. However, if you need a personal loan now without much fuss, you can get it from Cash Mart.

How To Know Your Credit Score in the Philippines?

Knowing you need to observe your credit report regularly, you’re probably wondering how. You can access your credit report to monitor your credit score on mobile and desktop. Follow these steps to request approval successfully. 

If you’re a mobile user, you must do the following. 

Step 1. Download the App. Get the CIBIApp from your phone’s Google Play Store or App Store.

Step 2. Create an Account. Open the CIBIApp and create an account. Choose an easy-to-remember username and password for future logins.

Step 3. Enter Your Details. Fill in your contact info, name, address, and other personal details.

Step 4. Upload Your IDs. Please upload clear copies of your primary and secondary IDs, such as your SSS, GSIS, TIN, UMID, driver’s license, PRC IC, Passport, voter’s ID, or senior citizen’s ID. Most importantly, include your digital signature.

Step 5. Schedule a Video Call. Within the CIBIApp, you can schedule a video call for ID verification. This service is available Monday through Friday, from 8:00 AM to 6:00 PM. Wait for a confirmation email from CIBI about your appointment.

Step 6. Prepare for the Video Call. On the appointment day, bring the IDs you uploaded ready. At the scheduled time, start the video call using the MeetMe feature in the CIBIApp.

Step 7. Make the Payment. After the video call, pay PHP 235, including VAT.

Step 8. Receive Your Report. Once payment is confirmed and verification is complete, CIBI will email you your credit report.

Meanwhile, you must do the following if you’re a desktop user. 

You must access the official website. Go to CIBIApp’s website. Then, follow the same procedure as stated in the mobile device access. Ensure you create an account, enter your details, upload IDs, schedule a video call, and pay so you receive your credit report.

Remember, the fee is fixed unless the CIBI otherwise announces any changes. Don’t fall from fraud and scammers claiming to help your credit report request. Most importantly, your credit history is the utmost confidential information. Never disclose it to anyone except from your trusted licensed moneylender like Cash Mart. 

Do you need a quick cash loan without a credit check? Cash Mart is a trusted money lender in the Philippines. It approves low-interest personal loans without the hassle of assessing your credit report. The legit moneylending company assesses your creditworthiness based on the credentials you submitted. What an excellent opportunity to overcome your unexpected financial trouble. Check out their loan product and services today!

Frequently Asked Questions: Credit Report Philippines

Can I decline to have my data submitted to the CIC?

No, you cannot refuse. The CIC collects your credit data from banks, lending institutions, and service providers, as required by law under R.A. 9510. Licensed money lending institutions and service providers must provide your credit information to the CIC. This way, they can maintain a fair and transparent credit system in the Philippines.

I would like to request a copy of my relative’s or another person’s credit report.

No, you cannot get a copy of someone else’s credit report. Only these people can do so:

• The Borrower: Only the person whose credit report it is can request.
• Financial Entities: The bank or legal money lender the borrower is dealing with can access it.
• Accredited SAE: They can get it only if the borrower gives explicit permission.

So, you can only get a credit report for yourself, not for your relative or another person.

How often does the CIC Credit Report get updated?

The CIC credit report is updated every 30 days after reputable money lending institutions receive new credit information from borrowers. It ensures that the credit report is current, accurate, and relevant.

Who can view my credit report?

With your permission, certain people can only access your credit report—you and the financial entities you transact with. However, the latter only works only with your explicit authorization. It keeps your credit information private and secure.

Can others use my credit report for purposes other than what I allowed it to do?

Your credit report is only used for a specific purpose, often for applying for a loan. Also, its purpose is for the time you agreed to, specifically during the time needed for the loan transaction. After that, it cannot be reused, shared, sold, or used for any other purpose without your explicit authorization.