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Most of us Pinoys from the middle or working class already have a credit card or have personal loans. But have you ever wondered what categories credit card companies and lending agencies go through whenever they are approving or rejecting a loan or credit card application of an individual?
The Credit Management Association of the Philippines or more commonly known as CMAP regulates all member banks, credit card companies and lending agencies. This means whenever a person has a bad credit history due to non-payment of personal, commercial or housing loans and unpaid credit card bills. His name will be blacklisted and he cannot avail loan from any CMAP member financial institution for a period of five years or more.
On receipt of your loan or credit card application, they will conduct an instant credit check to determine your credit score. They will enter the name of your CMAP database. If your name is included in CMAP, your application will be rejected immediately. If it doesn’t generate any hits, your application moves to the next level. They will enter your financial information such as credit cards you have, your income based on ITR and assets you have, each of them have different weighting on the credit score, some are rated higher than others. Barring any other negative findings and if your credit score is high enough. Your application will be approved.
In addition to CMAP, there are other Philippine governing bodies that exchange information with them, which is required by the Anti Money Laundering Act or AMLA to make it difficult for people to create fictitious accounts and have pending cases such as Estafa , prevent them from opening. checking account or getting a loan.
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