In the Philippines, credit bureaus play a crucial role in managing credit information. There are three major credit bureaus operating in the country: CIC, TransUnion, and Equifax. They collect and maintain credit data from various sources.
These credit bureaus gather information from banks, credit card companies, and other financial institutions to create credit reports. Credit reports are essential for lenders to assess a borrower's creditworthiness.
A credit report typically includes personal details, credit account information, and payment history. This information is used to determine a person's credit score, which ranges from 150 to 1,200.
History of Credit Bureaus
The history of credit bureaus in the Philippines is a relatively recent development. In 2016, the Credit Information Corporation or CIC announced the first six credit bureaus in the country.
These credit bureaus consist of five international firms and one local credit bureau. The accreditation was a significant step towards establishing a robust credit system in the Philippines.
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The CIC President at that time, Jaime Garchitorena, stated that the bureaus could start operations as soon as they become incorporated. This marked the beginning of a new era in credit reporting in the country.
The complete and substantial collection of credit data were planned to be ready by the end of 2016 or early 2017. This ambitious goal aimed to provide a comprehensive credit profile for consumers and businesses alike.
Credit Bureau Services
In the Philippines, credit bureaus play a crucial role in maintaining credit information and providing credit reports to lenders.
Credit reports are made available to consumers through the Credit Information Exchange System (CIES) of the Philippine Stock Exchange (PSE), which allows individuals to access their credit history for free.
The three major credit bureaus in the Philippines are CIC, CRIF Philippines, and Philcredit, each with their own strengths and weaknesses.
CIC, for instance, offers a wide range of credit reports and services, including credit scoring.
CRIF Philippines, on the other hand, has a strong presence in the country and provides credit reports and other services to various industries.
Philcredit, a joint venture between a local bank and a foreign credit bureau, offers a unique blend of local and international expertise.
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Accredited Credit Bureaus
In the Philippines, there are four accredited credit bureaus that provide credit information and intelligence to businesses, individuals, and organizations. CIBI Information, Inc. is the first credit bureau in the Philippines, established in 1982 as a quasi-government body to initiate a credit information exchange system.
CIBI has a rich history, starting as Credit Information Bureau, Inc. in 1982, and becoming a private entity in 1997. Today, it supplies compliance reports to suppliers, industry partners, and even hiring professionals. Marlo R. Cruz is the current President and CEO of CIBI.
TransUnion Philippines is another accredited credit bureau, which partnered with banks in the Philippines in 2011. This partnership has helped to establish a robust credit information system in the country.
Compuscan Philippines Inc. was licensed in October 2015 as a Special Accessing Entity, and it currently operates from Manila. It is a subsidiary of Compuscan, a company that specializes in credit information systems.
CRIF of Italy is also an accredited credit bureau, established in 1988 and specializing in credit information systems, business information, and credit management solutions.
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Credit Score and Report
You can request your credit score from the Credit Information Corporation (CIC).
They publish the request information, including the date and time you requested your credit score, and the purpose of the request.
The CIC tracks your credit score request with a unique tracking number, which you can use to identify your request.
For example, A. Arcilla's request was tracked with the number #CIC-402624893527.
You can check your credit score online or through a third-party service, but be aware that the information may not be up-to-date.
The CIC only publishes the date of coverage for each credit score request, which tells you the time period covered by the information.
The CIC also publishes information about credit reports, which include more detailed information about your credit history.
For example, R. Roldan requested a credit report on November 5, 2023, for the purpose of a loan application.
Some banks in the Philippines are working together to create a centralized credit information system, which will make it easier for lenders to assess credit risk.
This system will include both positive and negative credit information, and will help lenders to better distinguish good from bad borrowers.
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International Presence
International firms have made their mark in the Philippine credit industry. TransUnion Philippines, a local office of a Chicago-based firm, partnered with banks in the Philippines in 2011.
Compuscan Philippines Inc., a subsidiary of Compuscan, opened in Manila in 2015 and was licensed by the Credit Information Corporation (CIC) as a Special Accessing Entity (SAE).
The credit industry has seen an influx of international players, with CRIF of Italy also making its presence felt.
Here are some key players in the international scene:
- TransUnion Philippines
- Compuscan Philippines Inc.
- CRIF of Italy
Information System Act
The Credit Information System Act of 2008 is a significant piece of legislation in the Philippines.
This act established the Credit Information Corporation, which is the primary credit bureau in the country.
The Credit Information System Act is also known as Republic Act No. 9510.
It aims to regulate the credit information industry and ensure the accuracy and integrity of credit reports.
The act provides a framework for the collection, storage, and dissemination of credit information.
This includes the establishment of a centralized database for credit information.
Credit bureaus in the Philippines must comply with the provisions of the Credit Information System Act.
Failure to comply can result in penalties and fines.
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Bank Partnerships
The Philippines' first international private credit bureau was established by five of the country's largest banks, including BDO, BPI, Citibank Philippines, HSBC, and Metrobank.
BDO, BPI, Citibank Philippines, HSBC, and Metrobank teamed up with Chicago-based credit information management TransUnion to centralize credit information system.
This partnership aimed to ease credit flow by reducing risk for lenders and lowering the cost of money for good borrowers.
The five banks are in the final stages of incorporating a local company called TransUnion Philippines.
Its system went live in July and data will be ready to be accessed within the next few weeks.
Banco de Oro Unibank, Bank of the Philippine Islands, Citibank Philippines, HSBC, and Metrobank shared their negative list of delinquent accounts before, but now they can share both positive and negative data.
This means that banks can better distinguish good from bad borrowers and adopt a tiering system on interest rates.
The partnership will boost the financial system by allowing banks to build better customer portfolios and tap under-served market niches.
About four million borrowers hold around six million outstanding credit cards in the Philippines, according to BPI president Aurelio Montinola III.
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Frequently Asked Questions
How do I know if I am blacklisted for credit in the Philippines?
To check if you're blacklisted for credit in the Philippines, obtain a copy of your credit report from a credit bureau. A credit report will show any negative marks that may have led to a blacklisting.
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