How to Improve Your Credit Score in the Philippines

improving credit scoreA low credit score can keep you not only from best interest rates but also from getting your housing loan approved. If you’re planning to buy a house in the near future, build a good credit history to win the hearts of lenders.

No matter how low your credit score right now, you can improve it slowly but surely by doing the following:

Beat the Due Date

Any Lancaster review on Land Price List would advise you never to miss your payments. Punctuality is one of the biggest contributors to excellent credit rating. Know your due dates at heart to strategize the best ways to pay your bills.

Moreover, always choose the fastest payment method available. Ask your bank if you can set up auto-payment. Or, take care of business online so you can do it anytime, anywhere. With so many bayad centers these days, especially at malls, you have plenty of convenient options to avoid missed payments.

Pay in Full

Even if you’re not required to pay the entire balance on the due date, make every effort to zero out your bills every month. The unpaid balance will be carried over to the subsequent bill (possibly with interest), making the next harder to pay. If you make it a habit, it will reflect badly on your credit history.

Recover Fast

If you miss a payment, get back on track ASAP. In the eyes of lenders, accounts that are less than 30 days late aren’t necessarily bad. Credit grantors understand that missed payments are sometimes unavoidable due to banking system downtime and the late arrival of the billing statement among others.

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Don’t Max Out Your Credit Cards

The regular use of credit cards is the bedrock of credit scoring. However, don’t maximize your credit limit just because you can. Revolving debts are a red flag to lenders. They might think that you rely on them too much, which paints a bad picture. A good rule of thumb is to use just 30% (or less) of your credit limit regularly.

Building a good credit history takes time, discipline, and consistency. Request for a copy of your credit report from the Credit Information Corporation to ensure your information is accurate before applying for a housing loan.