How to keep a good credit record

MANILA, Philippines – Having a bad credit record will pose problems when applying for a new loan or a credit card.

Someone with bad credit score is also more susceptible to unscrupulous money lenders.

To maintain a good credit history, Alex Ilagan, the executive director of Credit Card Association of the Philippines (CCAP), said it is important to stay gainfully employed.

A steady income stream looks attractive to banks and credit card providers because it means having the ability to pay for goods and services and being a low-risk borrower.

It also helps if you have held a job for a long time.

Building a good credit record also requires being a responsible credit card user.

Ilagan said to improve credit score, bills should be paid in full before the deadline.

Missing a credit payment will negatively affect personal credit records.

Owning a credit card is also useful as several service providers, as well as government institutions such as consulate offices processing visa applications—and even hotels, require individuals to present a valid credit card as proof of their financial capacity.

Opening a checking and a savings account can also help in proving financial stability.

“Managing your financial affairs well, and being prudent will help you improve your credit record, and your ability to achieve you and your family’s future dreams,” Ilagan said.

source: www.abs-cbnnews.com

Credit card users told: Shop wisely this holiday season

MANILA, Philippines – The Credit Card Association of the Philippines (CCAP) has urged shoppers to use their credit cards with caution this holiday season.

“Using a credit card for holiday shopping is truly a practical and convenient choice, but cardholders need to be smart and safe,” CCAP spokesperson and executive director Alex Ilagan said.

Ilagan said to prevent overspending using a credit card, shoppers should make a list in advance, set a budget, and only charge within your means.

“Credit cards are an ‘avail now and pay later’ facility…they should not be treated like ‘free money’,” Ilagan said.
“As such, the same budgeting rules apply: compute how much you can realistically afford, and use that number as your guide.”

CCAP said December is the strongest month in consumer spending using credit cards issued by CCAP member banks.

Data also showed that consumer spending using credit jumped 6 percent from P445.12 million in 2012 to P471.76 million this year.

“The great thing about credit card shopping is that many banks provide zero percent installment promos on purchases that would otherwise leave a dent in your wallet…The ability to spread out expenses over a period of time has proven to be very useful for countless consumers,” Ilagan said.

As the incidence of credit card theft during the holidays is higher, Ilagan offered these safety tips:

For those with multiple credit cards, bring only one or two
Avoid lending out credit cards, especially to children or friends
Put your card away after each use
Avoid putting it in your pocket
Don’t linger at the cashier with your credit card exposed
“We’ve had reports of people standing in line at checkouts for the sole purpose of memorizing credit card numbers,” he warned.

Ilagan also urged consumers to pay their balances in full come January to avoid incurring interest charges.

“That's the great part about setting a budget and charging only what you can afford, you’ve managed your Christmas expenses, and start the year debt-free,” he said.

source: www.abs-cbnnews.com