How To Get Credit Without Bank Account Philippines? – popular question among Filipinos, so, in this article you can find out about it more.
Overdue loans, large debts – all these things ruin your credit history. We tell you what it is, how to improve it, and get a new loan even with a bad history. If you want to take a loan in the Philippines, it will be really easy for you. Thus, don’t hesitate to contact one of the local banks, for example, Tonik bank, just call the bank and ask for a loan. But beforehand, check the conditions because each bank in the Philippines has different conditions of loan taking.
In the Philippines, consumer credit is growing at a high rate, including the reason for the lax monetary policies of local banks. “Rates are affordable, inflation expectations are high. And the desire to get into credit, but to buy quickly, before it goes up in price, of course, people have,” say local authorities.
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Credit Without Bank Account Philippines
Banks use the information provided by creditors – not only banks and microfinance institutions, but also bankruptcy trustees, mortgage agents, lessors, and guarantors. In addition, the bureau may receive data on court orders and recoveries. For example, from debts for telecommunication services, housing, and utilities, from unpaid alimony.
Credit history is divided into four parts:
- a title part;
- the main part;
- the private part;
- the informational part.
- The first part includes personal information: your passport number, date of birth, and so on. The main part describes the loans, their term, delinquencies, information about bankruptcy, the borrower’s credit rating. It can also include data on recoveries.
- The closed part includes information about who gave you loans, whether your debts were transferred to someone else, and information about organizations that have asked for your credit history. The information section lists credit and loan applications, including those where you have been rejected, and describes the reasons. In addition, this section spells out the “signs of default,” if any. These are two consecutive delinquencies within 120 days.
- The information part can be viewed by any legal entity, but only for the purpose of issuing a loan or credit. The basic part can be looked at by a bank, insurance company, or employer, but only with your written permission.
- Credit history includes seven years of records. Usually, credit history is kept at several bureaus. Lenders choose their own, so your history may be kept in pieces in several places.
A borrower can request his or her credit history from the bureau at any time. You can order it electronically for free twice a year.
How Can I Challenge My Credit History?
If you already have a loan with overdue payments, which you have not yet paid off, it is unlikely that you will get a new loan. However, there are different situations. For example, there may be a mistake in your history, so it is worth checking it yourself.
Credit history can be challenged if it has typos, irrelevant and unreliable data. To do this, you need to contact the bank where the history is stored and write an application to make changes or additions. After that, the bureau will send an inquiry to the source of the credit history, which is usually the creditor. The verification will take 30 days.
From January 1, 2022, in order to challenge the credit history, you will be able to apply directly to the creditor, instead of filing an application to the bureau. If he confirms the veracity of the new information, the credit history will be corrected, if not – everything will remain as it is. A refusal can be challenged in court. If the bureau does not verify your application, you can also go to court.
How Do I Get a Loan With a Bad Credit History?
If you had a difficult period in life, you could not pay your loans on time, but you closed all debts, your credit history is still damaged. You can’t remove information from it. However, you may still be able to get a new loan. Some banks offer programs to improve your credit history, in which, accordingly, you need to take certain loans and pay them off successfully. This way, your credit history will show up with paid loans, which will have a positive effect on it.
If this option does not suit you, you can try to do it on your own. Some banks give loans even to customers with a bad history. As noted in Equifax, in this case, you should not expect to be given a large loan. The interest rate in this case will be high. If you are approved, it is better not to refuse it. You should make timely payments, and then there will be a new, positive record in your history. And, in the future, it can be easier for you to take out a new loan.
For example, you can apply for a credit card or take out a loan for inexpensive appliances, if you are sure that you will be able to repay your debt on time. Financial institutions do a very thorough review of your credit history in the past two to three years, so you can build up a good history with your creditors during this time.
You can also refinance your current loans if you find a better offer at your bank. This will help reduce your credit load. We wrote more about refinancing here.
In addition, it is worth collecting as many documents as possible to get a positive response from the bank. This includes a certificate of income. The guarantee of a person with a good credit history can also help. However, you should remember that this is a big responsibility. If you do not pay the loan on time, the delinquency will be recorded not only in your credit history but also in the history of your guarantor.
Banks will be more willing to give you a loan if you take it on the security of the real estate. However, this option should be considered only in case of an emergency. If something happens and you are unable to repay the loan, you will lose your real estate. Under the law, you cannot be deprived of your only home, especially if you have minor children. But the risks are serious.
If you want to take a loan in the Philippines, just check that the bank is safe and can be trusted. A good bank has a license and all the necessary certificates for providing financial services to people. There are many safe and trustworthy banks, they are usually advertised in local mass media and social media.