How to keep a good credit record

Posted at 03/28/14 7:00 PM

MANILA, Philippines – Having a bad credit record will pose problems when applying for a new loan or a credit card.

Someone with bad credit score is also more susceptible to unscrupulous money lenders.

To maintain a good credit history, Alex Ilagan, the executive director of Credit Card Association of the Philippines (CCAP), said it is important to stay gainfully employed.

A steady income stream looks attractive to banks and credit card providers because it means having the ability to pay for goods and services and being a low-risk borrower.

It also helps if you have held a job for a long time.

Building a good credit record also requires being a responsible credit card user.

Ilagan said to improve credit score, bills should be paid in full before the deadline.

Missing a credit payment will negatively affect personal credit records.

Owning a credit card is also useful as several service providers, as well as government institutions such as consulate offices processing visa applications—and even hotels, require individuals to present a valid credit card as proof of their financial capacity.

Opening a checking and a savings account can also help in proving financial stability.

“Managing your financial affairs well, and being prudent will help you improve your credit record, and your ability to achieve you and your family’s future dreams,” Ilagan said.