Credit Repair in the Philippines: How to Fix Your Credit Score

Common Causes:

• Late or Missed Payments – Payment history makes up a significant portion of your credit score. Consistently missing due dates for credit card bills, loans, or utilities shows poor financial management.

• Loan Defaults or Unpaid Balances – If you’ve failed to settle a loan or allowed an account to go into collections, this seriously impacts your credit history.

• High Credit Utilization – Using a large portion of your credit limit (typically above 30%) signals to lenders that you may be financially stretched.

• Too Many Applications for Credit – Each time you apply for a loan or credit card, a hard inquiry is made. Too many inquiries in a short time can lower your score.

• No or Limited Credit History – Ironically, not having any loans or credit cards can also make it difficult to build a good score, as lenders have no data to assess your risk level.

By identifying the behaviors that cause a poor score, you can start changing your habits and make more informed decisions moving forward.

How to Repair Your Credit Score

A damaged credit score can feel overwhelming, but it’s absolutely repairable. Whether you’ve been rejected for a loan or are just looking to improve your standing, there are clear, strategic steps you can take to rebuild your credit. The key is to act early, stay consistent, and work within the existing credit system in the Philippines. 

In this section, we’ll walk you through the exact actions you can take—like reviewing your credit report¹, settling overdue accounts, and using tools like secured credit cards—to slowly but surely raise your credit score. Think of this as your personalized action plan for credit recovery.

Actionable Steps:

• Get Your Credit Report – Request your credit report from CIC or its partners like TransUnion. This report will show your score, open credit lines, payment history, and any delinquencies.

• Check for Errors – Mistakes can happen. Look for incorrect loan amounts, payment dates, or accounts you don’t recognize. If you find any, file a dispute with the credit bureau or your bank.

• Settle Past-Due Accounts – Prioritize paying off debts that are overdue. Lenders may be open to restructuring options or payment plans.

• Make Timely Payments – Pay all bills—especially credit cards and loans—on time. Automating payments or setting reminders can help avoid delays.

• Reduce Your Credit Utilization – If your card is maxed out, try to pay down the balance and keep usage under 30% of your limit.

• Use a Secured Credit Card – If you’ve been denied traditional cards, apply for a secured card where your credit limit is backed by a cash deposit. These cards report your activity to credit bureaus and can help rebuild your score.

• Stick with It – Credit repair doesn’t happen overnight. Continue making smart financial decisions, and over time, your score will recover.

How to Maintain Good Credit Score

Once you’ve repaired your credit, maintaining that progress becomes the next goal. Many people successfully improve their credit scores only to make the same mistakes that hurt them in the first place. But with a few simple habits and some financial discipline, you can avoid setbacks and enjoy the long-term benefits of a good score. 

This section shares practical, everyday tips to help you stay on track—from managing your credit usage to monitoring your accounts and being selective about new applications. A strong credit score not only helps with approvals—it gives you better rates, more options, and greater peace of mind.

Smart Habits:

• Always Pay on Time – Payment history remains the most important factor in your credit score. Timely payments build lender trust.

• Use Only What You Need – Try not to use more than 30% of your credit limit, even if you can afford more. This shows that you manage credit² responsibly.

• Avoid Frequent Loan Applications – Too many inquiries can temporarily lower your score. Only apply for credit when necessary.

• Monitor Your Credit Regularly – Stay informed by reviewing your credit report annually. This helps you catch errors and track your progress.

• Keep Old Accounts Open – Closing older accounts shortens your credit history. If possible, keep your oldest cards active by using them occasionally.

• Diversify Your Credit Types – Having a healthy mix of credit types—such as a credit card and a personal loan—can also boost your score over time.

With these habits, you not only maintain a good score but also improve your eligibility for better financial products like high-limit credit. 

Take the First Step to Better Credit

Improving your credit score doesn’t happen overnight, but it starts with a single step—being proactive. Whether you’re just beginning your credit journey or working to fix past mistakes, choosing the right financial tools is essential.

Use Moneymax to compare beginner-friendly, no annual fee, or secured credit cards that can help you rebuild credit while managing your finances smartly. Take control of your financial future today—your higher credit score is within reach.