The SEA region has limited resources for learning about personal credit
Financial literacy and fintech are empowering Asian credit consumers to participate in the evolution taking place in the lending market.
Financial literacy is an essential life skill. Currently there’s a lack of understanding among many Thais on finance fundamentals. Many people we’ve spoken to at outreach events have said they don’t know what their credit score is, or how it works.
… I know that National Credit Bureau (NCB) is really important during asking for loans, but have no idea how to check it. I usually asked officials whether it is ok or blacklisted when making any loan.
…Loan wouldn’t be sanctioned if I miss mobile bill payment.
…I think it takes 2 years to get my credit history clean.
hese insights also tell us that people seem to only see the downside in getting blacklisted but not the benefits in having a good credit score.
Understand why your personal credit score
The first step to getting a better deal for loan is knowing and understanding your personal credit score.
What is personal credit score?
A personal credit score is a number that reflects a person’s credit worthiness. This score comes from the credit history collected by National Credit Bureau (NCB).
There are 2 parts include in personal credit data:
- Personal data, for example, name, address, marital status, job status and personal income.
- Behaviour data. This includes number of loan inquiry, payment history on outstanding loans or credit card.
Why is your personal credit important?
A personal credit shows the creditworthiness and the probability that a person repays his debts. Lenders use this data combining with other your financial information to assess your credit score. The higher the score, the more financially trustworthy a person is considered to be.
How is credit data collected?
Banks and financing companies submit borrower’s credit data and update every month. The data will be recorded with the National Credit Bureau (NCB) for 3 years from the date the members have sent the data.
At the center of Peer Power’s mission is to provide credit consumers with a personalized loan rate based on their credit score. Loans are then matched on our marketplace platform.
As awareness of the benefits of knowing your personal credit score increases, there is a rise in consumer strength for better deals when applying for their loan.
“From our customer interviews, we were shocked by how low the credit awareness in Thailand is, even amongst highly educated individuals. This needs to change!” – Jim, CEO of PeerPower