Sonnie’s Porch

With a booming economy of 7.3% growth, the best performance in the last 31 years, the Philippines can expect increased spending because of business expansions, and increased purchasing power of the people. With these, we can also expect increased credit availment either thru loans from financial institutions or in an individual level, growth in the use of credit cards.

But consumers must be careful on their spending habits, specially if they are living above their means, or living on credit. We must understand that our borrowing (and paying) habits, affect our reputation and credit standings.

What is bad credit?

Bad credit refers to the credit standing of people or companies who have history of late payments or bankruptcy. A not so good credit ratings will affect future credit, and in extreme cases, employability and employment.

Though it will take another blog post to talk about prudence in managing finances, let me close with a thought that if we borrow money, either thru a bank, financial institution, or used credit card, by all means, we must also pay on time and keep a good credit reputation.