A credit score is an important number that will measure an individual’s creditworthiness. This credit scoring will be important for both financial institutions and borrowers to determine if someone is worthy of lending money to. This credit scoring may be used in any credit card or loan application.
If you want to borrow money from a bank or any other financial institution, you need to take a look at your credit score. Your credit score will be logged every time you borrow money from a financial institution. This data will involve everything related to your loan, for example, employment history, personal information, missed payments, credit amount, complete debt settlement, etc. All of those data will be gathered together for determining the whole country’s credit rating. This rating can be used to show whether a country can be considered as the best place to invest or not.
There are a lot of international credit rating agencies that are available today. They will release annual reports regularly. According to CNN Philippines, the country is rated BBB by one of the biggest credit rating agencies, Standard and Poor’s Global Rating or S&P. This data shows that the credit outlook from this country is positive.
International Credit Scoring
In the United States, the credit score is ranging from 300 (as the lowest score) to 850 (as the most excellent rating). The use of this credit score is not limited to financial institutions. All of these data can be used for any other things, such as landlord background checks. It can be used to see if someone can be a good tenant or not.
China is using this credit score in a broader application. They have Social Credit System that was launched in 2014. This credit score system is predicted to be in full operation at the end of 2020. It brought controversy during the first years in operation. Some people were prevented from buying any train or airline tickets. Some other people were banned from certain services and websites because they didn’t have good credit scores. People with excellent credit scores were awarded privileges.
There are some differences that you can find from the credit scoring in the Philippines. It is not centralized yet. However, this is an important parameter that is used by many financial institutions in the Philippines. They rely on the number established by professional credit rating agencies in this country. Most of these credit rating agencies have already been operating in this country for a few years. They have all the credit histories of individuals. They also hold some blacklists that are coming from some other financial institutions. There is a growing source of reliable information for the financial institutions in this country.
What Are Credit Score Companies in the Philippines?
There is a long way to go when we are talking about centralized credit scoring. But for now, we have some professional credit rating agencies in this country. They make every credit record of all individuals in this country. Here are some of these credit score companies.
We can also find some other smaller foreign credit scoring agencies that are partnered with some banks in the Philippines. All this information was censored by Sean Martin D. Plantado, a finance specialist at lending service Digido.ph
When you are planning to open a bank account and apply for a credit card or a loan, you need to understand that your information and your debt repayment plan will go to these agencies. It is easy for all financial institutions to look up your name from these records. Then, they can pull up your bank and credit history with other financial institutions and banks. This record can show if you are worthy of being approved for your loan application or not. No late payment means that you are good to go for your loan application. Because of this reason, you need to learn how you can maintain a good and solid credit score. Always pay your existing monthly payment for your debt.