The Credit Information Corp. (CIC) is now accepting borrower’s data the various banks and financial institutions use to assess creditworthiness.
CIC President and CEO Jaime P. Garchitorena said the data system is ready to accept credit information beginning today, June 15.
Banks and other financial Institutions are currently working with the CIC to start contributing data to the system.
In the next six to 18 months, CIC will focus building the database and increasing its usability. The CIC will ensure that the data can be accessed by the entire ecosystem of users with the highest level of accuracy.
When banks share information, loan officers can assess any borrower’s creditworthiness using objective criteria.
For regulators, the credit information systems provide a powerful tool for supervising and monitoring credit risk in the economy.
“We hope that in 24 months, we will be able to say that everyone gets the credit they deserve from their credit history,” he said.
He expects full compliance of financial institutions that are technologically capable of contributing to the credit information system by December 2016.
The CIC will keep credit information of a person who has current contracts, closed contracts and contracts in default.
CIC serves as a central credit registry which collects positive and negative credit data on borrowers.
It provides consolidated basic credit information to individuals, businesses, financial institutions, private credit bureaus and other entities, that are afforded the right to access the credit information.
In the recent past, the various banks and financial institutions refused to share what credit information they have in their respective database, with each one keeping what information they have only to themselves.
This state of affairs led to very high loan rates for consumers, as banks endeavor to impute a rate that effectively covers the risk for each credit extended to relatively unknown borrowers.