10 Ways To Avoid Having A Bad Credit History

Your credit history is a record of your responsible repayment of debts. It is how banks decide if giving a loan to someone (let’s say, you) is a good credit risk or a bad one. It records all of your transactions, from banks, credit card companies, collection agencies, and governments. In short, it’s who you are as a buyer and debtor!

A person’s credit history usually matters when it comes to taking out loans – which Cebuana Lhuillier offers to everyone; from TODA operators, self-employed individuals, and small business owners! Most of all, you get your cash fast. Check out the different types of loans we have.

The way it works is all very simple: if you have a good credit history, they’ll give you better interest rates (additional fees put on top of what you owe the lender) on your loans (borrowing money from a bank), clear you for a new credit card, and approve your emergency loans as quick as possible. If not, you’ll suffer bad interest rates, landlords might deny you permission to rent a condo, and even getting a job can be a bit of a challenge.

Keeping your credit history in the green can be very simple, or very challenging; it all depends on how you discipline yourself. Avoid a life of debt by following these 10 ways to keep your credit history shining.

1. Build your credit history early.

The simple act of having a credit card, and not missing any payments, is a very easy way of building a good credit history. Banks are more likely to trust credit card holders with loans! When you have the chance, look up some banks that you might like and apply for a starter credit card – nothing too fancy, maybe one with a PhP10,000 limit to get you started!

2. Be consistent with your payments.

Your credit history improves over time, especially if you have a good track record spanning years without missing a single payment. The act of paying on time is one of the most noticeable contribution to your credit history. Keep it up, and you’ll keep yourself in the green side of your credit history for a very long time.

3. When you miss a payment, catch up.

There will be situations where you have to make the decision between paying off your loan, or choosing another, more crucial thing. Don’t fret! Usually, missing a payment won’t affect your credit score much if you pay within the next 30 days. Banks would chalk it up as an unintentional mistake, and your history remains intact. Beyond that though, you’re going to have a hard time catching up.

4. Keep your debt-to-credit ratio in the low thirties.

Credit experts in the US would tell you to keep that debt-to-credit ratio at 30% to avoid two things: 1) maxing out your credit limit, and 2) keeping your credit score safe. For example, you have a credit limit of P50,000. Keep your debt at around P15,000 to avoid hurting your credit score.

5. Keep ALL your bills paid, and on time.

Payment Due Date Circled In Red On A Calendar

It’s not just your credit card payments you have to look out for, but also for your utilities, phone bills, and more. Avoid getting reported to credit bureaus (such as TransUnion for the Philippines), which would hurt your credit score. Consistency is key!

6. Keep track of what you owe.

Having too many revolving debts can hurt your credit score, as it is hard to trust someone who is paying off too many debts. Applying for a loan at this stage can prove to be even worse for your financial condition In the long run.

7. Check your credit report often.

Even if you’re the most efficient and on-time payer of credit card dues ever, it’s hard to be sure. Check your credit report for every detail, down to the last purchase. Identity theft and credit card fraud are very real concerns, so you should watch out for any suspicious activity on your card, such as purchases you don’t remember getting. The sooner you address these anomalies, the better your credit score remains.

8. Having a long credit history helps.

Banks are likelier to trust those who have been credit holders for longer, as your credit score is reflected by experience over time. A nice, long credit history will mean to lenders that you are a good credit risk, able to pay and be consistent about it.

9. Apply for credit you actually need

Taking out several loans over a short span of time will make lenders suspicious, and may lead them to believe that your economic situation is in the red. For example, most banks would charge additional fees to people with too much existing debt, as they deem that the borrower is a big credit risk. It’s a matter of covering their bases. This is why you should take only what you need, one at a time, and complete your payments before even thinking about applying for a new one.

10. Educate yourself.

good credit scores just ahead illustration design over white

This article is only a quick glance at the many things you need to do to keep your credit score healthy. Read up on more tips, do your research, and inquire with your banker regarding ways to keep your credit history good, to avoid any delays on credit when you actually need it

Image Source:
http://www.cheapcarinsurance.net/check-your-credit-score-first-before-buying-a-car/
http://inspirationformoms.porch.com/5-tips-paying-bills-time/
http://unionoak.com/2015/12/08/3-steps-for-brushing-up-your-credit-score-before-home-shopping/

CORPORATE AGENT PARTNERS

  • ACTION.ABLE, INC.
  • ALL ACCESS GATEWAY INC.
  • ANTRECCO (AGUSAN DEL NORTE TEACHERS, RETIREES, EMPLOYEES & COMMUNITY COOPERATIVE)
  • ACM VIP
  • ALL CASH
  • AGRILIFE/ AGRIVET
  • ASENSO PINOY STORE, INC. (EASY DAY SHOP)
  • AVICOM ENTERPRISES
  • AYALA ALABANG VILLAGE ASSOCIATION
  • BAUG CARP MULTI PURPOSE COOPERATIVE
  • BAGUIO BENGUET COOP
  • CARD BANK INC
  • CARD MRI RIZAL BANK INC
  • CARD SME BANK
  • CARITAS BANCO NG MASA, INC.
  • CEBU PEOPLE’S MULTIPURPOSE COOPERATIVE
  • CIS BAYAD CENTER, INC
  • COOPERATIVE BANK OF BOHOL, INC
  • COUNTRY BUILDERS BANK
  • CREDENCE FINANCING, INC.
  • CURAMED PHARMACY
  • DALTON PAWNSHOP AND JEWELRY INC.
  • DANIELA PAWNSHOP
  • DIRECT AGENT 5 (DA 5)
  • DEVELOPMENT BANK OF THE PHILS.
  • EXPRESSPAY INC.
  • EVRIJEM FOREIGN EXCHANGE AND MONEY REMITTANCE
  • FILHAI MULTI PURPOSE COOPERATIVE
  • GLOBAL PINOY REMITTANCE AND SERVICES (GPRS)
  • GEMARY PAWNSHOP AND JEWELRY (CORP.)

OVER 600 BILLER PARTNERS NATIONWIDE

  • 123 FINANCE CORPORATION
  • 123 LENDING CORPORATION
  • 2C2P
  • 8AMC (VIA ECPAY)
  • ABEJO WATERS CORP.
  • ABRA
  • ACOM CONSUMER FINANCE CORPORATION
  • ACTIVE REALTY & DEVELOPMENT CORP.
  • ADA MANUFACTURING CORPORATION (VIA ECPAY)
  • AEON CREDIT SERVICE
  • AETERNITAS CHAPELS AND COLUMBARIUM (VIA ECPAY)
  • AFC SME FINANCE INC
  • AFTERWEST MICROLOANS INC
  • AGODA – DRAGONPAY
  • AGRIBANK
  • AGRO-INDUSTRIAL FOUNDATION COLLEGE OF THE PHILS.
  • AGUSAN DEL NORTE ELECTRIC COOPERATIVE, INC.
  • AIR YOU GO TRAVELS PHILIPPINES CO.
  • AKLAN ELECTRIC COOPERATIVE, INC.
  • ALAMINOS CITY WATER DISTRICT (VIA ECPAY)
  • ALLIANZ PNB LIFE INSURANCE INC.
  • ALPHA FUND SAVINGS & CREDIT COOPERATIVE (VIA ECPAY)
  • AMADEO WATER DISTRICT (VIA ECPAY)
  • AMYA POLYTECHNIC COLLEGE, INC. AND FINANCING CORPORATION (LENDPINOY)
  • ANGAT WATER DISTRICT (VIA ECPAY)
  • ANGELES ELECTRIC COMPANY ANGELICUM SCHOOL , INC. ILOILO CITY (VIA ECPAY)
  • ANJELMAN REAL ESTATE LEASING
  • ANTIQUE ELECTRIC COOP, INC ANTRECCO (BILLS PAYMENT)

OVER 600 BILLER PARTNERS NATIONWIDE

  • 123 FINANCE CORPORATION
  • 123 LENDING CORPORATION
  • 2C2P
  • 8AMC (VIA ECPAY)
  • ABEJO WATERS CORP.
  • ABRA
  • ACOM CONSUMER FINANCE CORPORATION
  • ACTIVE REALTY & DEVELOPMENT CORP.
  • ADA MANUFACTURING CORPORATION (VIA ECPAY)
  • CREDIT SERVICE
  • AETERNITAS CHAPELS AND COLUMBARIUM (via ECPAY)
  • AFC SME FINANCE INC
  • AFTERWEST MICROLOANS INC
  • AGODA – DRAGONPAY
  • AGRIBANK
  • AGRO-INDUSTRIAL FOUNDATION COLLEGE OF THE PHILS.
  • AGUSAN DEL NORTE ELECTRIC COOPERATIVE, INC.
  • AIR YOU GO TRAVELS PHILIPPINES CO.
  • AKLAN ELECTRIC COOPERATIVE, INC.
  • ALAMINOS CITY WATER DISTRICT (via ECPAY)
  • CREDENCE FINANCING, INC.
  • CURAMED PHARMACY
  • DALTON PAWNSHOP AND JEWELRY INC.
  • DANIELA PAWNSHOP
  • DIRECT AGENT 5 (DA 5)
  • DEVELOPMENT BANK OF THE PHILS.
  • EXPRESSPAY INC.
  • EVRIJEM FOREIGN EXCHANGE AND MONEY REMITTANCE
  • FILHAI MULTI PURPOSE COOPERATIVE
  • GLOBAL PINOY REMITTANCE AND SERVICES (GPRS)
  • GEMARY PAWNSHOP AND JEWELRY (CORP.)

List of Accepted Government/ Valid IDs

  • Passport
  • Driver’s License
  • Professional Regulation Commission (PRC) ID
  • National Bureau of Investigation (NBI) Clearance
  • Police Clearance
  • Postal ID
  • Voter’s ID
  • Philippine Identification (PhilID) card
  • Government Service Insurance System (GSIS) e-Card
  • Social Security System (SSS) ID
  • Senior Citizen’s ID
  • Overseas Workers Welfare Administration (OWWA) ID
  • OFW ID
  • Seaman’s Book
  • Alien Certification of Registration (ACR)
  • Barangay Certificate or ID (with picture and signature)
  • Birth Certificate (applicable to minors only)
  • Firearm License
  • Immigrant Certificate of Registration
  • Marriage License
  • National Council for the Welfare of Disabled Persons
  • New TIN ID
  • OWWA ID
  • Student ID
  • Alien Certification of Registration (ACR) / Immigrant Certificate of Registration
  • Government Office or Government Owned and Controlled Corporations (GOCC) ID (e.g. AFP ID, HDMF (Pag-ibig Fund) ID, etc.
  • Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
  • Department of Social Welfare and Development (DSWD) Certification
  • Integrated Bar of the Philippines ID (IBP)
  • Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP (Bangko Sentral ng Pilipinas), SEC (Securities and Exchange Commission) or IC (Insurance Commission)

IDs Accepted

As required by Bangko Sentral ng Pilipinas (BSP), clients who engage in a financial transaction with covered institutions for the first time shall be required to present the original and submit a clear copy of at least ONE (1) valid photo-bearing identification document issued by an official authority. For our clients’ convenience, Cebuana no longer requires submission of the photocopied ID. IDs are captured using a webcam in all branches. Clients are also required to submit an updated photo and other relevant information whenever the need for it arises.

Forms of identification accepted are the following;

Pawn Accepted IDs
1. Passport
2. Driver’s License
3. Professional Regulation Commission (PRC) ID
4. National Bureau of Investigation (NBI) Clearance
5. Police Clearance
6. Postal ID
7. Voter’s ID
8. Philippine Identification (PhilID) card
9. Social Security System (SSS) Card / Unified Multi-Purpose ID (UMID)
10. Barangay Certification
11. Government Service Insurance System (GSIS) e-Card
12. Senior Citizen Card
13. Overseas Workers Welfare Administration (OWWA) ID
14. OFW ID
15. Seaman’s Book
16. Alien Certification of Registration/Immigrant Certificate of Registration (for foreigners)
17. Government Office and GOCC ID, e.g., Armed Forces of the Philippines (AFP ID)
18. Home Development Mutual Fund (HDMF ID)
19. Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
20. Department of Social Welfare and Development (DSWD) Certification
21. Integrated Bar of the Philippines (IBP) ID
22. Company IDs issued by private entities or institutions registered with or supervised or regulated either by the Bangko Sentral ng Pilipinas, Securities and Exchange Commission or Insurance Commission
23. ID issued by the National Council on Disability Affairs (NCDA)