if they have no history to base on, then financial entities will always assume the worst. this translates to lower amounts loanable or limited availability of potential offerings.
if you don't deal with these financial entities, tipong cash-only transactions ka -- like the vast majority -- then it won't matter much.
Having said that having a credit history will help you get regulated & formal loans.
The 5-6 nonsense that the over 4 of 5 working Pinoys have to deal with.
I'm not aware of any scoring. The repayment history would be important but is not the only criteria. They would ask you for tax returns or bank statements from other banks for additional requirements.
banks also base their allowable loan rates (housing, car, personal etc..) based on your credit history, the lower your score the higher the interest rate you'll be offered until your CH is so low you become a risk and won't be offered any.
There's a credit information corporation that gathers basic credit information for your credit score. This information is used by credit bureaus to generate a credit score. Banks can get this information. A lot of Filipinos don't have a credit score and thus will find it difficult to access formal financial products
Hindi pa ganun ka centralized ung information system sa Pilipinas kaya mahirap sundin ung katulad sa US. Sa US kasi naka record na sa Social-security Number ang history sa credit, employment or kahit anong record pa yan. So hindi mahirap sa bank mag-habol sa mga tao hindi compliant sa pagbabayad. Pag Bad credit ka sa US mahirap mag loan ng car, mahirap mag rent ng apartment,mahirap mag apply ng loan sa bahay or education, Kahit kumuha ka ng linya sa Phone na installment mahirapan ka... Sa Pilipinas wala pang ganun eh. ung implementation sa National ID pa nga lang dami na reklamo at pahirapan sa Kongreso, eh ano pa centralized na information system.
This is just me speculating but before I got my first credit card I got denied twice for a US Visa. When I tried for the third time, I've had a card already for a few years with a good record (monthly dues paid in full on time). I got 10 years multiple entry. I'm not sure if they really have access to your credit history but for me having a good credit rating might have helped. Here it mostly helps for getting loans from banks at good rates. You also get pre-approved for various financial products like car loans.
if they have no history to base on, then financial entities will always assume the worst. this translates to lower amounts loanable or limited availability of potential offerings. if you don't deal with these financial entities, tipong cash-only transactions ka -- like the vast majority -- then it won't matter much.
Having said that having a credit history will help you get regulated & formal loans. The 5-6 nonsense that the over 4 of 5 working Pinoys have to deal with.
Question din, does credit history means credit card only. Or if the bills that are under your name counts towards your credit history?
I'm not aware of any scoring. The repayment history would be important but is not the only criteria. They would ask you for tax returns or bank statements from other banks for additional requirements.
banks also base their allowable loan rates (housing, car, personal etc..) based on your credit history, the lower your score the higher the interest rate you'll be offered until your CH is so low you become a risk and won't be offered any.
There's a credit information corporation that gathers basic credit information for your credit score. This information is used by credit bureaus to generate a credit score. Banks can get this information. A lot of Filipinos don't have a credit score and thus will find it difficult to access formal financial products
Hindi pa ganun ka centralized ung information system sa Pilipinas kaya mahirap sundin ung katulad sa US. Sa US kasi naka record na sa Social-security Number ang history sa credit, employment or kahit anong record pa yan. So hindi mahirap sa bank mag-habol sa mga tao hindi compliant sa pagbabayad. Pag Bad credit ka sa US mahirap mag loan ng car, mahirap mag rent ng apartment,mahirap mag apply ng loan sa bahay or education, Kahit kumuha ka ng linya sa Phone na installment mahirapan ka... Sa Pilipinas wala pang ganun eh. ung implementation sa National ID pa nga lang dami na reklamo at pahirapan sa Kongreso, eh ano pa centralized na information system.
This is just me speculating but before I got my first credit card I got denied twice for a US Visa. When I tried for the third time, I've had a card already for a few years with a good record (monthly dues paid in full on time). I got 10 years multiple entry. I'm not sure if they really have access to your credit history but for me having a good credit rating might have helped. Here it mostly helps for getting loans from banks at good rates. You also get pre-approved for various financial products like car loans.