Credit Standing

[juankaliwete]

How does one go about repairing bad credit history?

 

Due to circumstances beyond my control, I had credit cards cancelled a few years (dating from 1998-2002) back. All outstanding liabilities have since been settled with the credit card organizations.

 

However, every time I try to apply for a loan or for a new credit card these days, I get rejected because the credit check report indicates WITH CANCELLED CARDS. No details attach to this comment so that the organizations requesting for credit information do not know that all liabilities have been settled.

 

How does one go about fixing this particular scenario?

 

Appreciate any worthwhile advise on steps to take.

 

Thanks.

[vader2007]

I am in the same situation. Hope someone out there can provide suggestions.

 

Thanks.

[hitomi]

i don't think you can do anything about that guys, only time can heal 'em

 

banks typically let those records pass when they are 5-10 years old.

[Dr_PepPeR]

i don't think you can do anything about that guys, only time can heal 'em

 

banks typically let those records pass when they are 5-10 years old.

 

That's true, but I noticed that the CBCI maintains records that are up to 20 years old. If you feel you that you are still a good credit risk, you can always ask for an exception. Banks are starved for loans right now, and the consumer loans market is really a borrower's market.

[vader2007]

That's true, but I noticed that the CBCI maintains records that are up to 20 years old. If you feel you that you are still a good credit risk, you can always ask for an exception. Banks are starved for loans right now, and the consumer loans market is really a borrower's market.

 

Sorry for asking but what is the CBCI? Can people with bad credit histories go to this agency or association to rectify credit records?

 

Thanks.

[hitman531ph]

Nothing you can do about bad credit standing.

 

For banks, before they lend you any money, they check the following records:

 

CMAP - Credit Management Association of the Philippines - a list of all court cases (criminal and civil) involving money. These are: Estafa, Robbery, Theft, BP22, Ejection, Sum of Money, Replevin. If you have a common name, such as Jose Cruz, you can easily overcome this. CMAP does not include addresses. However, if there is a co-defendant, and it happens to be your spouse and it is exactly the same name, more explanation or justification for loan is needed.

 

CCAP - Credit Card Association of the Philippines - a list of all persons with bad payment records with credit card companies. Hard to get around this since it includes addresses and spouse (if any), credit card issuer and dates.

 

BAP-BCW - Bankers Association of the Philippines - Bouncing Checks Watchlist - If you issue 3 bounced checks in a week or 5 in a month, your name will be found here. Even harder to get around this since there is a number of bouncing checks involved and includes name, spouse (if any), address, bank branch, date closed.

 

BAP-LIS is also taken into consideration. BAP-LIS is issued by Bankers Association of the Philippines - Loandex Information System. Since it takes a few days for this information to come in, consumer loan borrowers are usually exempted from this rule. Commercial borrowers have to go through this. It's a list of all loans, amount involved, balance, date of first avail, term and rating of how you handle the loan.

[juankaliwete]

Thanks for the info.

 

From the way things look, it seems I need to be rich and don't need to borrow before the banks will again consider lending.

 

Will keep you posted on developments.

[kaju]

Get a certification from those banks that you have already settled your account with them in full. Then next time you apply for a loan, you attach a photocopy of those.

 

Good luck!

 

what about a company that consolidates all your loans and credit card balances? is there such a company. in america, there is a so called "credit advisors or credit consolidators". can someone shed light on this? is there one here in our country?

 

thanks

[hitman531ph]

A credit bureau is in the works at the Bangko Sentral that consolidates all these. However, it has been two years and the credit bureau is still not set up.

[Dr_PepPeR]

Sorry for asking but what is the CBCI? Can people with bad credit histories go to this agency or association to rectify credit records?

 

Thanks.

 

Sorry for the typo that should be CIBI or CIBI Information Inc., a credit investigation company.

[kadjo]

any loan company that can pay up all your debts and you can pay them in differed payment in lets say umm....3 years?

[vader2007]

Sorry for the typo that should be CIBI or CIBI Information Inc., a credit investigation company.

No worries Dr. Pepper...btw, similar to the query of the other poster. Are there people you can hire to do the leg work and fix your credit standing by interfacing with all the necessary agencies and companies? It seems to be a daunting task to get all these certifications and then talk to all these credit "people" before a certification can be issued or my bad record will be erased or updated.

Edited August 15, 2007 by vader2007

[hitomi]

No worries Dr. Pepper...btw, similar to the query of the other poster. Are there people you can hire to do the leg work and fix your credit standing by interfacing with all the necessary agencies and companies? It seems to be a daunting task to get all these certifications and then talk to all these credit "people" before a certification can be issued or my bad record will be erased or updated.

 

i think you can get anyone to do it, just give 'em a SPA (unsure though, let's wait for the experts hehe)

 

but it would be better if you get someone close to you because you wouldn't want strangers mucking about

your credit records right?

[kadjo]

can anyone answer my question with regards to credit consolidation?

[golden boy]

any loan company that can pay up all your debts and you can pay them in differed payment in lets say umm....3 years?

 

 

can anyone answer my question with regards to credit consolidation?

 

 

from my knowledge, we don't have a company that consolidates loans like the ones from US. but want you can do is do a balance transfer to a credit card company and avail of an installment scheme. if your credit card loans are small amounts ,what you can probably do is do a balance transfer of all your outstanding balances from your other cards into one credit card company then pay them in installment. but, this will depend on your credit limit. the total oustanding balances from your various credit cards should not be more than atleast 80% of your credit card limit to which you will consolidate all your debts. another option is to avail of a personal loan or salary loan or an instant cash facility from your credit card from which the proceeds will be used to pay all your outstanding loan balances - this way you have consolidated all your debts and will just pay one provider. hoped this help.

 

for those who are getting out of some credit card problem/s, i suggest you read the book by david bach entitled " start late, finish rich". if you can buy a copy the better. if not just browse thru it either in national bookstore, powerbooks or fully booked. if you can't find the book you may also try" the automatic millionaire" by the same author. there is a section there dedicated in solving your credit card problems. very practical suggestions. will try to post a summary some other time (sorry quiet sleepy na). :sleepysmiley03: