CMAP and You

Last time, I wrote about the CiC and the possible new role our credit information and history will play in our finances.

However, as a source of credit information, it's not unique nor even the first in the Philippines.

For about 80 years now banks, credit cards and other lenders could get credit information from CMAP - Credit Management Association of the Philippines, Inc.

So what's CMAP?

It's basically a group of banks, credit card companies, lenders, and even insurance, real estate, and telecommunications companies; and their members share credit information with one another.

If you defaulted on a loan or never paid back what you owe on your credit card, this is how other banks and credit card companies know about it.

And if your property developer is a member, they'll most likely check with CMAP before approving your request for "in-house" financing.

So why do we need the CiC?

Well, for one, CMAP data isn't available to the general public. If they somehow got some of their info wrong, there's no way for you to know and therefore fix it.

Second, it's not as comprehensive; though that statement might be a bit misleading.

Since its members are banks, credit cards, lenders, insurers, realtors and even telcos, their  information is pretty solid. If I were a lender (and member of CMAP), I'd have pretty sound info with which to make a decision.

As ordinary folks though, we're at a disadvantage.

Armed with a credit report, you'd have an idea that you might be getting higher rates than is ideal because of a few negative items. And consequently, you'd be able to correct or remedy such data.

With just CMAP (and no such report), it's possible you could be paying a higher (maybe unfair) rate without even knowing it. Unless you knew and asked other people taking out a similar loan during the same time frame.

At the same time, with CiC, you'd have more ways to show credit worthiness (cooperatives, utility bills, etc.)

Of course, all that is almost beside the point. Good things can happen if you're responsible with your finances, and the reverse is true. Credit information matters, but not as much as your responsibility in handling your finances.

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photo credit: marsmet543 via photopin cc

1 comment:

  1. Is there really no way to check one's record in CMAP? With the existence of CIC, what will be the role of CMAP? I tried requesting for Negative Report from CIBI and their report says that i have no negative records. Despite this, i am still having a hard time getting approved for credit cards, not one!