For many Filipinos, the term credit score sounds technical or intimidating—but the truth is, improving it is surprisingly straightforward. Whether you’re eyeing a housing loan, planning to start a business, or just want better financial freedom, a good credit score can open doors. And the best part? You don’t need to be a finance guru or a high-income earner to build one.
“It’s not about being perfect with money; it’s about being consistent,” says Atty. Aileen Amor-Bautista, Executive Vice President of CIBI Information Inc., one of the country’s top credit bureaus. “Credit scores are reflections of behavior over time, and good habits always pay off.”
If you’re ready to take control of your financial future, here are five simple but powerful habits that can steadily boost your credit score—starting today.
1. Pay Your Bills on Time, Every Time
When it comes to credit scoring, payment history is king. Whether it’s a credit card bill, personal loan installment, or even a utility bill, paying on time is the most important thing you can do.
“Missing payments—even by a few days—can hurt your score and signal to lenders that you’re unreliable,” warns Maricar Reyes, a personal finance consultant and former bank credit officer. “Timely payments build trust, and trust is currency in lending.”
To stay on top of payments, set calendar reminders, enable auto-debit arrangements, or use budgeting apps. Over time, this habit alone can make a significant difference.
Pro Tip: If you’re struggling to pay, communicate with your lender. Many are willing to restructure payments or offer grace periods.
2. Keep Your Credit Card Balances Low
Your credit utilization ratio—the percentage of your credit limit that you’re using—matters a lot. Ideally, aim to use less than 30% of your available credit.
“If your card has a ₱50,000 limit, keep your monthly balance below ₱15,000,” explains Reyes. “Going beyond that consistently makes it look like you’re living beyond your means, even if you’re paying in full.”
Paying more than the minimum each month also shows you’re not just scraping by, which reflects positively on your credit behavior.
Pro Tip: If you tend to overspend, consider lowering your credit limit voluntarily or using a debit card for non-essential purchases.
4. Review Your Credit Report for Errors
Even the most responsible borrowers can be penalized due to mistakes in their credit reports. That’s why it’s crucial to regularly check your credit history for errors, such as payments marked as late or loans incorrectly listed as unpaid.
In the Philippines, you can get your free credit report through the Credit Kaagapay app as it has collaborated with Credit Information Corp. (CIC).
“Everyone has the right to know their credit standing,” says Joseph Tan, a fintech policy advisor. “And if something looks wrong, don’t just accept it—dispute it. A clean report is your foundation for financial health.”
Pro Tip: Credit Kaagapay offers resources to help you understand and manage your credit report, and how to correct errors directly with the credit bureaus.
5. Maintain Long-Term Credit Accounts
The length of your credit history also plays a role in determining your score. The longer you’ve had credit—and the more responsibly you’ve used it—the better.
“Many people think closing old credit cards helps their score, but it often does the opposite,” explains Tan. “If an old card has a good payment history and no annual fee, keep it open.”
Even if you’re not actively using a card, its age contributes positively to your score, especially if it has a high limit and low or no balance.
Pro Tip: Use your oldest card for small, regular expenses—like a Netflix subscription—just to keep it active and show continued use.
Building Credit Takes Time—But It’s Worth It
While these five steps might seem simple, the power is in their consistency. Good credit isn’t built in a week—it’s built through small, smart decisions made month after month.
“Think of your credit score like your personal brand in the financial world,” says Reyes. “If you manage it well, lenders, landlords, and even employers may take you more seriously.”
Improving your credit score means you’ll eventually qualify for:
- Lower interest rates
- Higher loan or credit card limits
- Easier approval for housing, auto, or business loans
- Stronger financial reputation
And more importantly, it gives you peace of mind and control over your financial life.
Take Control of Your Credit Story
Your credit score isn’t set in stone. Regardless of where you’re starting, you can change the narrative through intentional, responsible action. Whether you’re working toward owning a home, starting a business, or simply becoming more financially independent, it all begins with the right habits.
“Building a good credit score doesn’t require perfection—it just requires progress,” says Amor-Bautista.
Let Credit Kaagapay be your guide in this journey. From understanding your report to making informed decisions, we’re here to help every step of the way.
Want to know your credit status? Download the Credit Kaagapay app and have free access to your credit report and guides to start your journey toward better credit—today.
