How important is your individual credit scoring?

CNN Philippines (Metro Manila) — Credit might be an intimidating issue for most Filipinos, but it can open doors to financial well-being.

CIBI Information, Inc., the country's first and only Filipino credit bureau, is helping Filipinos understand and utilize their own creditworthiness to improve their standard of living.

"For individuals, we started to implement a credit scoring system. We're trying to change the lending landscape of the Philippines from asset-based to risk-based," said CIBI Information, Inc. President and CEO Marlo R. Cruz.

But what is a credit score and why should it matter?

With the use of credit score, people would be able to borrow money easily even if they don't have any hard assets for collateral. This is a game changer for the credit industry.

"In the Philippines, if you want to borrow money, they always ask you what is your collateral? But right now even if you don't have any hard collateral to offer banks, even if you're only a good payer or paying your debts and bills on time — this is already a good indicator." Cruz said.

In this way, Filipinos would be able to get financing just for having a good debt payment track record regardless of collateral. Credit history is recorded in a person's credit report. This will be a source of information for analytics to determines the credit score.

For more than 36 years, CIBI Information has been paving the way for Filipinos to have better access to credit.

Better credit access will help the ordinary Filipino grow, and the economy as well.