Quote Originally Posted by Dende View Post
Actually po di nabubura records, nakakakita pa rin ako ng negative records as far as 1997. Kahit na 80s pa yang record mo pwede gamitin yan ng bangko para madecline ka maliban na lang if you have high income and good debt to income ratio to compensate dun sa bad record mo.
This is true. I work with a financial institution.

Your records stay with you. That's what CIBI (Credit Information Bureau, Inc.) does. The only way it gets erased is if you can have access to BSP's computers, and its multiple back up layers.

It's also true that even if you have a "bad" record, you can still get a loan depending on the risk appetite of a lending institution/bank. Some banks are aggressive, and will be willing to take the risks. Some will stick to individuals or groups with sterling records, especially for sizable loan amounts.

It's also true that car loans are easy to avail nowadays, as most bank categorizes this as a low-risk, low-yield, but high-volume revenue-generating segment. Anyway, loan will be "fully" secured, and we haven't considered that a bubble can form within this segment. One drawback with this repossessed assets: those who religiously pay their loans, (and future borrowers as well ) also suffers, as they have to bear the brunt of higher financing costs. Banks have anticipated all of these risks and we have factored them in in your interest rates! Why, that's the essence of Risks Management! ;P