US firm to launch cred­itscor­ing sys­tem

Manila Times - - BUSINESS TIMES - LISBET K. ESMAEL

A SYS­TEM that will al­low lenders to eval­u­ate an in­di­vid­ual’s cred­it­wor­thi­ness will soon be avail­able in the Philip­pines, a US-based an­a­lyt­ics com­pany said.

In a state­ment is­sued late on Thurs­day, FICO an­nounced that it had part­nered with Con­sumer Cred­itscore Philip­pines (CCS) for the sys­tem which it said would fa­cil­i­tate lend­ing in the coun­try.

a per­son’s cred­it­wor­thi­ness, the like­li­hood to pay back a loan. The higher the score, the more be,” it said.

The com­pany said it cal­cu­lates a per­son’s credit stand­ing us­ing his “pay­ment his­tory, level of in­debt­ed­ness, length of credit his­tory, new credit, and types of credit used.”

As only 14 per­cent of the pop­u­lace have bank ac­counts, FICO said the part­ner­ship with CCS would al­low it to es­tab­lish a new strat­egy where Filipinos can be as­sessed us­ing “telco be­hav­ior, pay­ment be­hav­ior in util­ity bills (wa­ter, elec­tric hos­pi­tal bills.

The com­pany urged Filipinos to “im­prove, main­tain, or re­pair” their credit stand­ing if they wanted to se­cure loans.

“Good credit in­creases a bor­rower’s chances of get­ting a loan or the credit card faster; se­cured with bet­ter, lower in­ter­est rates and terms,” it said.

FICO said the es­tab­lish­ment of the sys­tem in­clu­sion in the coun­try.

“[W]hen you look at a na­tional in­clu­sion pro­gram, and you want to ac­tu­ally em­power and em­bet­ter the peo­ple, you have to come up with some­thing that is equal to ev­ery­one, so ev­ery­one pays the same rate based on their risk,” FICO coun­try direc­tor Bur­ton Crapps said.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.