What if the key to financial freedom wasn’t about avoiding debt — but using it wisely? Many view credit as a burden, but when managed wisely, it becomes a powerful tool for monetary growth. It opens doors to seize life-changing opportunities — buying a home, starting a business, or even securing your financial future.
Credit is more than just borrowing — it’s a powerful tool for stability. However, many Filipinos still lack the understanding needed to use credit effectively.
In fact, only 2% of surveyed Filipinos answered questions on basic financial literacy correctly according to the “2021 BSP Financial Inclusion Survey.” In the end, this result shows that there is an urgent need for persistent efforts in financial education, including debt management.
Mastering your credit score: Essential steps to unlock financial advantages
It is time to transform the perception of credit from a burden to an opportunity, by learning how to use it wisely — starting with these three key steps:
Firstly, understand what affects your credit score and how you can maintain it. It is a crucial indicator of your financial health, reflecting your ability to manage and repay borrowed funds. A low score can hinder your access to loans, while a high score can open doors to better financial opportunities.
To enhance your creditworthiness, focus on these five key factors:
- Timely payments — consistently paying your bills on time is paramount. Late or missed payments can significantly lower your credit score and remain on your report for up to seven years. Setting up automatic payments or reminders can help maintain a positive payment history.
- Manage credit utilization — aim to use less than 30% of your available credit limit. For instance, if your limit is ₱100,000, try to keep your outstanding balance below ₱30,000. High utilization rates may signal financial stress to lenders.
- Maintain long-standing credit accounts — the length of your debt history contributes to your score. Keeping older accounts open, even if they’re not frequently used, can positively impact your debt profile.
- Limit new debt applications — each new inquiry can slightly reduce your score. Apply for new loans only when necessary, and avoid multiple applications in a short period.
- Diversify loan type — a mix of accounts, such as credit cards, installment loans, and retail accounts, can benefit your score. However, only take on loans you can manage responsibly.
Secondly, understand the importance of good credit scores.
Securing a loan is a tool that plays an important role in assuring your financial stability. While developing a strong debt score takes time, the long-term benefits are invaluable.
Here’s why it is worth the effort:
- Easier approvals for loans and cards. Banks and lenders trust good debt scores, making securing approvals easier for you.
- Lower interest rates and better borrowing terms. A strong debt profile helps you secure lower interest rates and more favorable borrowing conditions, which saves you money in the end.
- Enables investment opportunities. If you are eyeing an opportunity, whether that is buying a new car or even starting your own business, a good debt score can help in making that more accessible for you.
- Increased financial flexibility. Good debt scores give you the freedom to seize opportunities that can contribute to your peace of mind and well-being.
Now that you know what shapes your debt score, it’s time to take control of it.
CIBI, a homegrown credit reporting agency in the Philippines, has been building one of the country’s most powerful data ecosystems for over 40 years — covering 269 million tradelines, 1,000+ submitting entities, and over 60 million individuals and businesses.
Turn knowledge into action
And here’s the best part: you can now check your CIBI Credit Score anytime, straight from your phone. To check your score, simply open the Lista app, tap on Marketplace, scroll to the Others section, and access your report instantly — powered by CIBI.
Download or update the Lista app today to start making smarter financial moves and unlock better
loan decisions that lead to long-term wins. With the right info at your fingertips, it’s easier to stay on top of your finances and avoid loan slip-ups.
Taking out a loan isn’t something to fear — it’s something to master. With CIBI and Lista, that mastery starts now.
Securing loans and employment made more accessible for Filipinos
Image source: The image used in this material references the official announcement from Lista, originally published in their blog post titled “Find your CIBI Credit Score in its new spot,” dated Sept. 4, 2024. Visual elements from the Lista app interface are used to illustrate the updated location of the CIBI Credit Score feature within the app. All rights and trademarks belong to their respective owners.
CIBI Information Inc. is the Philippines’ pioneering reporting agency and only local background screening provider, established in 1982 under the Central Bank of the Philippines (now Bangko Sentral ng Pilipinas).
Accredited by the Credit Information Corporation (CIC), CIBI serves as a trusted intelligence partner to over 500 organizations across diverse industries.
The CIC, the state-owned public credit registry, was created under Republic Act No. 9510, also known as the Credit Information System Act (CISA). The CIC ensures that lending decisions are based on accurate and reliable data, fostering responsible borrowing and risk management.
With a team of over 200 dedicated professionals, CIBI offers a wide range of solutions that make credit and employment more accessible and inclusive for Filipinos. Acquired by Creador, a private equity firm, in 2020, CIBI has since collaborated with global leaders such as FICO, GDS, and Smart Consulting. It also works closely with CTOS, Malaysia’s leading credit reporting agency, to integrate international best practices into the Philippine market.
CIBI is committed to remaining at the forefront of the information services industry, driving financial
inclusion and creating economic opportunities nationwide. For more information, visit www.cibi.com.ph.