Are you hurting your Credit Score? Here’s how you can repair your Credit Standing (2024)

Life happens and sometimes we are forced to make decisions that negatively impact our credit. But with the right actions, you can repair your standing.

Your credit score is the foundation of your financial identity, it’s what influences your ability to access credit cards, loans, and other financial services.

Per TransUnion Philippines, a credit score is rated from 300 to 950, with 950 being the highest. This means that the higher your score, the better.

When you have a good credit score:

• You get an increase on your card’s credit limit, and/or access to card features like cash advance or cash installment that you can use for emergencies.
  
• You can easily get approved for a loan that allows you to make major life upgrades such as owning a car and a home.
  
• If you’re an entrepreneur, you can take out a loan to grow your business.
  
• Essentially, you get access to more credit, when you need it.
  

On the other hand, when you have a bad credit score:

• Financial institutions are likely to restrict your access to credit.
  
• It will be difficult to get credit in times of emergencies or financial distress.
  
• You’ll be subjected to higher interest rates when you apply for a loan (e.g. car loan, housing loan, personal loan).
  

But the good news is, there are steps you can take to repair your credit and once again enjoy the benefits of a good credit score. Here’s how:

1. Request a credit report from TransUnion Philippines via www.transunion.ph
2. Review your report and address the negative items it identifies;
3. Pay off all your unpaid obligations, or you can also reach out to your bank for more manageable payment arrangements such as balance conversion or paying in installments; and
4. Manage your credit card usage to reduce your balances.

Once you’re able to do these steps, make sure that you:

• Spend only what you can pay for.
  
• Pay your credit card bills and loans on time.
  
• Create a budget to manage finances more effectively.
  
• Avoid opening new credit accounts in close succession.
  

For your Metrobank credit card bills, you can pay via any of these convenient payment channels:

• Online Banking: Metrobank Online, M Online, PSBank Online, Security Bank Online, RCBC Online, BancNet Online
  
• Mobile App: Metrobank App, PSBank Mobile App
  
• e-Wallets: GCash, Maya, Coins.ph, ShopeePay, Lazada, CIMB, RCBC Diskartech, Tonik, Glyph, PitakaMo
  
• Others: Cebuana Lhullier, SM Bills Payment Counters, ECPay, Robinsons Department Store, Automatic Debt Arrangement (ADA)