Credit Report and its Safety

"A credit rating is an opinion on the financial soundness of an enterprise and its capability to repay its debts and the corresponding interest. It is a tool for risk assessment and as such, it provides investors with a simple and objective indicator of default risk to supplement their own credit evaluation." (Business Finance and Philippine Business Firms, Nenita D. Mejorada, 2006)

Some of us are willing to give up the complacency and security of a regular job to go into business. We are willing to invest our money on a business where we can be our own master and employer. We make feasible studies, build our network, and offer our products through social ecommerce. But getting into business means having the acumen to take advantage of opportunities. We should know our target market, the goods and services our market needs, the growth and stability of our business, and the financial resources that we have.

There's a great deal of business opportunities to try out there. A lot of us are willing to grab them but we don't have the sufficient capital to do so. We may gradually save from our monthly pay, invest our money on assets, or if we're lucky, we can make use of what our family has. Another option is to approach other parties who are willing to invest in our business. But most people opt to get loans for their business capital instead. These days, banks are more than willing to offer assistance in starting a capital. This what makes credit report an imperative source of information to get loan approval from banks.

What's in a credit report?

Credit report contains your credit history – the types of credit you use, your account payment history, recent credit and loan applications and how much credit you've used. Your basic information, employment history are also included.

This data is being used by credit bureaus to generate your credit scores so you may gain access on your financial situation.

Safety of a credit report

We see a number of credit report available online. We see advertisements enticing us to see our online credit report and score by a click of a button. Initially, we are curious on our credit scores and how we can improve our assets.

But finding a reputable credit reporting is also an important thing to consider. Credit report information and its safety solely relies on verifying the legitimacy of a credit bureau. It should be valid and legal.

In the Philippines, there is a credit bureau called CIBI Information, Inc. or CIBI, established in 1982, that is "engage in collating, developing and analysing credit information on individuals, institutions, business entities and other business concerns. It aims to develop and undertake the continuing exchange of credit data within its members and subscribers, and to provide an impartial source of credit information for debtors, creditors and the public." (

Having a secured credit bureau like CIBI will provide us a privacy policy that gives us details on how our information will be used.  They guarantee a secured place for our information which is crucial in safekeeping our data.  

Good credit for financial freedom

Managing our credit plays a vital role in our financial life. It is essential not only on getting a strong credit history but it also qualifies us to get a better option in accessing our credit line. What knowledge we have about credit management gives us the control over our future. It is better to be equipped especially when it comes to our finances. And when it comes to finances, it works hand in hand in planning for our future. Financial management draws us away from obligations that may keep us from gaining financial failures. Securing a credit bureau like CIBI gives us back that financial freedom.

About the Author

Thelma Villaroel