How to Maintain a Good Credit Score

Tips on how you can manage and use your credit wisely and responsibly

Building and maintaining a good credit score are two different things you need to look at for your long-term financial goals. Building something means you must start somewhere- be it through credit cards or loan applications. Though it’s easy to start your journey, committing and maintaining good standing is not a walk in the park.

Before you start your journey, here are some tips on how you can manage and use your credit wisely
and responsibly:

Establish Good Payment Behavior
If you’re in your late 20’s or early 30’s, you might have plans of getting your dream house or upgrading your secondhand car. Having this plan implies going to banks to check for interest rates and corresponding loan product offers. Financial institutions run different adjudication processes to assess and validate a borrower’s loan request. One of the priorities is the client’s payment behavior. Banks and loan providers will not approve an account if they know this will turn sour over time. Establishing a good payment behavior also provides you an option to negotiate charges and interest rates especially if you can show proof that you have paid off all your loans on time.

Manage Your Debt
It’s best to understand how keeping your credit involves managing both your new and outstanding accounts. It pays to limit your new applications and existing credit to fully manage your debts. Loan balances and credit lines may cause a big impact to your credit score. As suggested, limiting your applications and keeping your credit balance low is important to note. Try to set your big purchases and goal on a yearly basis to allow you some time to breathe from constant spending and to avoid burning cash due to impulsive purchases.

Watch Your Credit Report
The Philippines is part of the growing market. There’s a lot of opportunities and best practices we can learn from other developed countries- one of which is the value of credit report. Remember to regularly have your credit health checked! Errors can end up in your credit report and there’s a high chance that loan providers did not update your information causing loans you have accomplished to show up in your report. You can secure your credit score yourself once a year by requesting a report from CIBI Information Inc. Doing so will help you assess and evaluate if getting another loan will put you in a more favorable state in your next credit/loan application.


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