Building Your Credit Score

Philippine credit scores explained

The Credit Information Corporation (CIC) maintains credit records for all Filipinos. Your score ranges from 300–850. Banks and lenders check this score when you apply for credit cards, personal loans, home loans, and car loans. A score above 700 is considered good for approval with favorable rates.

How to check your score

You can check your CIC credit score for free twice per year using the CIC App 3.0 (available on Android and iOS). You'll need a valid government ID to register. Your report shows all credit accounts, payment history, and inquiries from lenders.

Building credit from scratch

If you have no credit history (common for fresh graduates), here's how to build it:

• •Start with a secured credit card: Deposit P2,000–P10,000 as collateral and get a credit card with that limit. BPI, Security Bank, and RCBC offer these.
• •Use it for small, regular purchases: Groceries, gas, subscriptions. Spend 10–30% of your limit.
• •Pay the full balance every billing cycle: This costs you P0 in interest and builds a perfect payment history.
• •After 6–12 months: Apply for a regular credit card. Your payment history from the secured card will support your application.

The golden rules of credit

Credit is a powerful tool when used correctly, and a dangerous trap when misused:

• •Always pay the full balance — minimum payments trap you in 24–36% annual interest
• •Never use more than 30% of your credit limit (utilization ratio affects your score)
• •Never use credit cards for cash advances (25–30% interest + additional fees)
• •Set up auto-pay for at least the minimum payment to avoid late fees
• •Don't apply for multiple credit cards at once — each application creates an inquiry that temporarily lowers your score