Data from state-run Credit Information Corp. revealed that installment transactions—a series of payments instead of a lump sum made for afforded goods usually with corresponding interest rates—dominate the Filipino borrowers’ credit reports.
Of the 56,481,088 contract data in the country’s sole public credit registry as of Dec. 16, 2019, about 36,833,166 or 65 percent were installment transactions.
This was followed by credit card transactions with 18,816,821 and non-installment contracts with 633,192.
“Installment transactions being the bulk of CIC data is significant. Until now, most transactions captured by other credit bureaus were credit card transactions which may not necessarily reflect an accurate picture of the broader type of lending that is happening in the Philippines,” CIC president and CEO Jaime Casto Jose Garchitorena said.
Installment transactions cover everything from microfinance institution loans to vehicle and housing loans.
Being the Philippines’ foremost repository of credit information, CIC has the largest credit database with the most diverse set of contributors—rural banks, thrift banks, cooperatives, financing/leasing corporations, universal and commercial banks, thrift banks, insurance companies, lending corporations, credit card issuers, microfinance institutions, cooperative banks, savings and loans associations and government-owned and controlled corporations with credit facilities including the Government Service Insurance System which has already started submitting data.