PASIG CITY, 14 August 2018 – The Credit Information Corporation, true to its mandate, advised the borrowers to update their credit records with financial institutions so that, in the long run, it could be used as their reputational collateral.

In an interview with Atty. Aileen L. Amor-Bautista in DWIZ 882’s In the Heart of Business, the SVP for Business Development and Communications Group also advised the submitting entities such as banks, credit card companies, cooperatives, insurance companies, among others, to promote awareness campaign among borrowers to ensure that their information is current and updated.

Atty. Amor-Bautista emphasized that access to credit report, which contains both positive and negative credit information of an individual, can be used as a tool for lenders to monitor the total exposures of borrowers and know their payment capacity and behavior in no time – thus, easing the process of loan applications.

Borrowers on the other hand, will be knowledgeable on their capability to pay and report erroneous data to the financial institution they have transaction with.  Aside from preventing over indebtedness, CIC expects that this will also strengthen its campaign towards the general public to access loans with formal lenders instead from informal lenders or loan sharks.

Through CIC, the positive and negative credit information collated will deliver balanced and comprehensive payment history of a borrower, diminishing the common practice in the industry where only negative payment behavior is being collected, limiting not only the individual from obtaining credit facility, but many Filipinos on having a better quality of life.

Data Privacy

The Republic Act No. 9510 also known as Credit Information System Act (CISA) is exempted in the implementation of Republic Act No. 10173 also known as Data Privacy Act of 2012. The borrowers will be informed, but cannot refuse to submit their credit data to the CIC because data submitted will determine the comprehensiveness and effectiveness of the Credit Information System (CIS) generating the credit report.

SVP Amor-Bautista also ensured that thorough security process is implemented within the CIC when it comes to submission and access to credit data of borrowers.

National ID System

When asked if credit rating will be part of the national ID system recently signed by President Rodrigo Duterte, she replied that it will definitely help in the future to ease transaction with the CIC limiting various ID requirements into one.