Young adults in their early twenties often joke about being “broke” or avoid checking their accounts after a shopping spree. But avoiding financial responsibility is not forever. As more of the new generation starts earning, it’s time to take personal finance seriously, and that starts with understanding credit.

In today’s digital age, as access to online payment tools becomes more widespread, some Filipinos are more inclined to use e-wallets than credit products. Beyond simple digital transactions, many are also leaning towards alternative financing options such as installments, personal loans, and buy-now-pay-later (BNPL) schemes.

But credit, despite being a flexible financial option for consumers to manage expenses, is often overlooked.

What many may not realize is that credit comes with a score. Unlike BNPL or short-term installments, credit contributes to one’s financial health, which could soon translate to bigger financing, such as saving up for a home, a trip abroad, or even starting a business.

Miguel, a 24-year-old account manager, has been working for two years since graduating from college. During that time, he has been using his credit card for daily expenses instead of frequently relying on e-wallets for ride-hailing apps and food delivery.

“I use my credit card as my ‘spending card’, so any transaction that can be bought with a credit card, I will use it,” he said in an interview.

“As soon as you build responsible financial habits and build your financial literacy to a decent point, then it’s the best time to start building your credit, so in the future, if there is an emergency or a big purchase you want to buy, your bank will trust you,” Miguel shared.

So, how does your bank determine if you’re a good borrower? It’s not based on one’s appearance nor personality— it’s about spending habits and how they’re tracked. That’s where the credit bureau comes in.

Banks and lenders rely on credit reporting agencies like CIBI Information, Inc., a company designed to accelerate financial inclusion by providing credit data to assess an individual’s financial health. Before becoming a private firm offering credit solutions and employment screening services, CIBI began as a division under the Bangko Sentral ng Pilipinas (BSP) around 43 years ago.

In an exclusive interview, CIBI’s Chief Executive Officer, Pia Arellano, described CIBI as a “financial empowerment” tool for companies that determine the loans they grant to their clients.

“With CIBI, it’s really just a bigger financial empowerment story, because we talk to the entire financial services sector. Whether it’s a co-op, a rural bank, or a big bank, or a big lender in the tech-digital, those are all our customers. We also talk to SME (small, medium enterprise) lenders,” she said. “It's so many segments… that's why I really feel like we're such a catalyst for nation building because it's pretty much, yeah, all those industries.”

According to Arellano, CIBI plays a crucial role in supporting financial inclusion in the Philippines by helping fintechs and traditional lenders manage risk through access to high-quality credit data.

“In order to continue supporting this and managing risk for lenders, you need access to more data,” she explained. “With CIBI, we’re the only ones who have advanced-tier access to the Credit Information Corporation (CIC)… It’s the gold standard when it comes to CIC data access,” she added, emphasizing the information accuracy they provide to their partner clients.

The more credit evaluations a person goes through (and passes responsibly) the better their credit score becomes. That’s how credit scoring works: the higher the number, the better one’s credit standing will be. With a healthy credit score, bigger financial goals like starting that cafe or restaurant business, buying a house or condo, or even owning a car become more attainable.

Arellano expressed hope that CIBI could further expand its knowledge-sharing initiatives as a credit bureau, emphasizing that financial literacy is essential— especially in a time when many people fear debt or lack the tools to manage their budget responsibly.

Besides tracking expenses and keeping a record of them, CIBI has also launched the Fraud Bureau, a collaborative initiative focused on detecting and preventing financial fraud through accurate, data-driven insights. According to Arellano, the group was created in response to the growing number of fraud cases, particularly in the rapidly expanding fintech sector.

So far, the Fraud Bureau consists of four fintech companies and four traditional banks, as well as ongoing discussions with the Credit Card Association of the Philippines (CCAP), Fintech Alliance PH, and Bankers Association of the Philippines (BAP)

The CIBI chief is also encouraging more partners to join the initiative and emphasizing the importance of involving the public sector in the effort.

As part of her wish to move the bureau forward, she also hopes to partner with the Philippine National Police (PNP), the National Bureau of Investigation (NBI), as well as the Department of Information and Communications Technology (DICT) to scale up the program.

“Imagine how that could help with regard to really making this fraud consortium more robust… We have been reaching out to BSP and they are very supportive,” she said, citing active discussions with the central bank following the release of the implementing rules and regulations (IRR) for the Anti-Financial Account Scamming Act (AFASA). 

This law aims to crack down on financial scams, protect consumers, and bolster financial trust.

Whether you’re a soon-to-be business owner, an avid traveler, or a future homeowner, it’s never too early or too late to get your finances in order. Understanding how to manage money is important, but being responsible with it is what truly makes the difference.