The Philippines as a country is astonishing with a warm welcome and friendly people, beautiful nature, and confusing culture. It has lately experienced economic growth in the past few years offering various employment opportunities for both Filipinos and immigrants. Based on the middle class, the relevant person is paying more attention to property investment and financial future. Among such institutions that can be said to be vested with very central roles within these plans, we can name the Philippine Housing Loan Credit (HLC) Corporation otherwise known as Pag-IBIG. Pag ibig is an essential aspect for anyone who wants to own their own home or even rent an apartment in the Philippines you need to understand how this works and how it impacts your credit score. In this blog post, we will answer the question of whether Pag-IBIG considers your United States credit score.
Understanding Pag-IBIG
Pag-IBIG or Home Development Mutual Fund is an attached agency of the Department of Human Settlements and Urban Development. It was organized in 1978 to ensure the country has a feasible and sustainable socialized housing finance structure in the Philippines. Pag-IBIG Fund explains its intended market of the Filipino population- Filipino and household helpers around the world, allowing them to own quality and affordable homes. This organization provides such services in the field of finances including savings, investments, and loaning schemes meant for the benefit of the members of the reorganization.
How Does Pag-IBIG Work?
Interested members of, and individual shareholders x28; must contribute to the Pag-IBIG Fund every month or invest in the PAG-IBIG Fund Investment Program (PIF). No age, nationality, or income requirement was set in the program allowing any Filipino or foreign national to join the program.
The primary services Pag-IBIG offers are:
1. Pag-IBIG Savings: It is an amultiple-productt savings program designed to assist members in developing their capacity to save for the future. Donations are payroll-weighed from the member’s monthly remuneration and the interest accrued on the contributions is tax-free
2. Pag-IBIG Fund Investments: The members have the option to place their money in the PAG-IBIG Fund Investment Program (PIF) to earn better interest. Still, the PIF can afford different investment opportunities, for example, some can be placed as a fixed-term deposit, while others as an equity fund.
3. Housing Loan: Pag-IBIG offers a low interest; fixed term loan to finance acquisition of shelter product/ housing. The loan limit depends on the contribution made by the member, the loan rating, and the capacity of the member to repay the loan. Another part of the consumers’ credit needs is housing loans which are necessary for first-time home buyers as well as for those who already have a second house.
Credit Score and Housing Loans
Credit scores significantly determine credit worthiness of an individual. They are simply numeric statements of a person’s credit profile and spending pattern. Corporate credit scores vary between 300 and 850 in the United States where the higher scores present better credit risks to companies offering out credits. No one wants a black list and a good credit score proves the efficiency of an individual in the payment of his/her debts and so on for loans.
Of course, as mentioned, Pag-IBIG provides members with housing loans. Pag-IBIG loan offers housing loans to its members, some of the considerations that the loan officer checks include credit status, credit score, stability of income, working history, and guarantee. Although Pag-IBIG concerns a member’s credit history and savings about the Pag-IBIG fund, they might look at a member’s credit reference/bureau scores, especially in bigger loan requirements, or if they lack a Pag-IBIG credit history.
Does a United States Credit Score Get Checked?
Pag-IBIGFund'sd major decision criteria are credit standing about Pag-IBIG and the contribution history of the member seeking the housing loan. However, they might include a member’s external credit rating especially if from the United States under certain things.
For instance, if a member applying for credit does not have enough Pag-IBIG credit history or in case of large loan eligibility, the Pag-IBIG may require the member to furnish a copy of his credit report from any recognized credit bureau in the United States. Such additional information is of help in deciding from a general credit position of the member and the chance of him repaying the loan. On the other hand, should the members of Pag-IBIG have had a long history of Pag-IBIG savings as well as credit history, then external credit reports may not be required.
However, it is likewise important to bear in that even though pag-big takes into consideration the credit score of the member from another institution, this may not always be the case as it depends on the discretion of the loan officer, terms and conditions of the loan and other factors relating to member’s circumstances. However, for most situations, it is more advisable to depend on your credit history with Pag-IBIG rather than any external credit rating.
Ways on How to Increase Your Pag-IBIG Fund Credit Rating?
It is always important to increase your credit score not only for cases like applying for a loan in Pag-IBIG but also for traditional lending companies. Here are a few tips to help you enhance your Pag-IBIG credit score:
1. Maintain a consistent savings contribution: Consistent & prompt savings deposit helps in showing intention to the Pag-IBIG program besides giving signals regarding one's proper financial management.
2. Avoid delinquency: Lastly, never miss any contributions to Pag-IBIGsavingsg to avoid any problems on default in paying your contributions.
3. Keep your loan payments current: Those who have an existing Pag-IBIG housing loan must continue paying their monthly remittances on time. Oversights in payment timelines are not good for one’s credit score.
4. Make timely loan payments: If you are among the lucky people with a Pag-IBIG loan, then avoid missing out on your remunerations. This is enough to show your capacity to manage the debts responsibly so that you can be enrolled for more credit you do not need.
Conclusion
The Pag-IBIG mainly assesses a member’s Pag-IBIG credit history and savings contribution to determine the capacity to qualify for a housing loan, but they may go for other types of credit especially those of the US kind of credit scores, in certain circumstances. However, Pag-IBIG account history should be the priority before counting on borrowed external credit histories. This means that every time you make your contributions towards your Pag-IBIG savings account or pay the current outstanding loan balance, your credit rating in Pag-IBIG improves which in turn enhances the possibility of you getting a housing loan or any other services offered by the organization.
