Most of us Pinoys in the middle or working class already own a credit card or have a personal loan. But have you ever wondered what are the categories credit card companies and loan agencies are looking for whenever they are approving or rejecting an person's loan or credit card application?
The Credit Management Association of The Philippines or more commonly known as CMAP governs all member banks, credit card companies and loan agencies. What that means is whenever a person has a poor credit history due to non payment of a personal, commercial or housing loans and unpaid credit cards bills. His name will be black listed and he or she cannot obtain a loan from any CMAP member financial institution for a period of five years or more.
Upon recieving your loan or credit card application, they will immediately do a credit investigation to determine your credit score. They will enter your name of the CMAP database. If your name is included in the CMAP, your application will immediately be rejected. If it produces no hits, your application will proceed to the next level. They will enter your financial information like the credit cards you own, your income based on the ITR and assets you posses, each of them has a different weight on the credit score, some are rated more than others . Barring any other negative findings and if your credit score is high enough. Your application will get approved.
Aside from the CMAP, there are other Philippine governing bodies that exchange information with them, which is required by the Anti money laundering act or AMLA that makes it harder for people to create fictitious accounts and for those who have pending cases like estafa from opening a checking account or obtaining any loan.