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The Importance of Maintaining a Good Credit Score as a Filipino Expat: Tips for Building and Maintaining Your Credit

The Importance of Maintaining a Good Credit Score as a Filipino Expat: Tips for Building and Maintaining Your Credit

08 Dec 2023


One of your top priorities as a Filipino expat who lives and works overseas is surely sending money home to support your family. Sending money to Philippines online is essential, but it's also important to make decisions about your financial future and take action to establish and keep a great credit score. The significance of having a high credit score as a Filipino expat, as well as advice for establishing and managing credit, will all be covered in this article.

 

Why Is It Essential for Filipino Expats to Keep a High Credit Score?

Everyone who wants to take out a loan or get a credit card must have a decent credit score. However, you can encounter more difficulties as a Filipino expat trying to establish and maintain your credit score. For instance, it could be challenging to get credit if you have a weak credit history in your new nation of residency. You might also need to handle debts or other financial responsibilities in the Philippines, which could reduce your credit score.

 

Higher ratings indicate better creditworthiness, ranging from 300 to 850. Typically, a credit score of at least 700 is regarded as good. Credit bureaus like Credit Information Corporation (CIC) and TransUnion compute credit ratings in the Philippines.

 

Importance of Credit Score

There are various reasons why having a strong credit score is important for Filipino ex-pats:

 

Access to Credit

Whether you need credit for a car loan, mortgage, or credit card, having a high credit score can simplify getting it. If your credit score is low, you might have trouble getting credit or be given loans with excessive interest rates.
 

Reduced Interest Rates

If your credit score is high, lenders are more likely to give you credit cards and loans with lower interest rates. Long-term savings and easier money management are both possible as a result.
 

Better Financial Health

Keeping up a high credit score is an indication of good money management. It demonstrates your financial responsibility and ability to handle your bills and financial commitments.
 

Improved Housing Options

If you want to buy a house in the Philippines, you could be able to get a mortgage with better terms and conditions if you have a decent credit score.

 

Job Possibilities

Some businesses run a credit check as part of the recruiting procedure. Your chances of finding a job may increase if you have a strong credit history that demonstrates your dependability and responsibility.
 

Advice for Improving and Keeping Your Credit Score

As a Filipino expat before money transfers online to Philippines, it is important to maintain a good credit score. Let's look at some advice for establishing and maintaining credit.

 

Establish Credit

If you are a recent immigrant to your country of residence, your credit history may not yet be well-established. Opening a credit card account is one approach to begin establishing credit. You might need to start with a secured credit card, which uses a deposit as security if you have no credit history.

 

Make prompt payments

One of the key elements affecting your credit score is your payment history. Be careful you always make payments on time. 

 

Keep Your Credit Usage Low

Your credit utilization refers to how much of your available credit you are using. Your credit score might rise if your credit use is kept low (below 30%).
 

Watch Your Credit Report

You can identify mistakes or fraudulent activities by keeping a regular eye on your credit report. Contact the credit bureau to dispute any mistakes or inconsistencies you see on your credit report.

 

Credit card accounts shouldn't be closed because doing so might lower your credit score. Instead, consider keeping your account active and being cautious about its usage to preserve your credit history.

 

Utilize a Variety of Credits

Having a variety of credit available to you, including credit cards, personal loans, and mortgages, will help you raise your credit score.

 

With the rise of online money transfer services, sending money to the Philippines has become significantly simpler. One such service is ACE Money Transfer, which enables users to send money from the comfort of their homes to the Philippines and other nations. Let's discuss how to use ACE Money Transfer to send money online to Philippines.

 

How to Use ACE Money Transfer to Send Money to the Philippines

It is easy to send money to the Philippines using ACE Money Transfer. You must first register on the website for ACE Money Transfer. You may do this by giving your name, address, phone number, and email address. 

 

You must provide the information for your recipient after creating an account. Name, address, and phone number are all included. If you transfer money directly to your recipient's bank account, you must include that information.

 

The amount of money you are sending must then be selected. The exchange rates offered by ACE Money Transfer are competitive, and the costs related to transferring money are frequently less expensive than those charged by conventional banks.

 

You will be prompted to choose a payment option after choosing the amount you want to send. Bank transfers, credit cards, and debit cards are just a few of the possibilities ACE Money Transfer provides.

 

After choosing your payment option, you will be asked to review your transaction information. The sum of money you are transferring, the costs you will incur, and the anticipated time of delivery for your transfer are all included in this. You can submit your transfer request if all is in order. Once your receiver has received the cash, ACE Money Transfer will complete your online money transfer to Philippines and let you know as well.

 

Wrap Up

Keeping a strong credit score is essential for Filipino ex-pats who wish to use financial services and goods. If you need to send money to the Philippines or make investments back home, having high credit can make it simple for you to get loans, credit cards, and other financial products. It's necessary to pay your payments on time, keep your credit utilization low, and routinely check your credit report to increase and preserve your credit score. Moreover, think about using online money transfer providers that provide competitive exchange rates if you need to send money to the Philippines.
 

FAQs

Why is it important to maintain a good credit score as a Filipino expat?

Maintaining a good credit score is crucial because it can impact your ability to access financial services, such as loans, credit cards, and mortgages, both in your host country and back in the Philippines. A good credit score can also lead to better interest rates and favorable terms on financial products.

 

How can I build a credit history as a Filipino expat in a foreign country?

To build a credit history, consider opening a local bank account, getting a secured credit card, or applying for credit with local utility providers. Timely payments and responsible credit usage are key to establishing a positive credit history in your host country.

 

Can my credit history in the Philippines affect my credit score as an expat?

While credit bureaus in your host country may not directly consider your Philippine credit history, having a positive credit history in your home country can be beneficial. It can demonstrate your financial responsibility and help you access certain financial products when needed.

 

What are some tips for maintaining a good credit score as a Filipino expat?

To maintain a good credit score, always pay your bills on time, avoid carrying high credit card balances, and use credit responsibly. Regularly check your credit report for errors and fraudulent activity, and update your contact information with credit bureaus and creditors.

 

How can I improve my credit score if it's currently low as a Filipino expat?

Improving a low credit score may take time, but it's possible. Focus on making on-time payments, reducing outstanding debt, and avoiding new debt. Consider working with a credit counselor or financial advisor to develop a strategy for improving your credit score over time.


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