GCredit on GCash: How it's useful and when it's a bad idea
MANILA, Philippines — While you use your GCash app, you may have encountered GCredit as among the many options the e-wallet offers. The service, powered by CIMB Bank, can be used to pay for bills even with zero GCash balance.
GCredit can be used for paying almost anything, such as utility bills, online payments or QR payments, for those time when you're just a bit short of cash.
GCredit requirements and other things you need to know
GCredit provides a base of P10,000 credit line and is only available for fully verified users with high GScores. GScore is the user's overall "trust score" from using GCash—depending on how a user buys, pays bills, invests, saves and uses other GCash features.
The difference with GCredit as an utang or loan option is that interests are prorated. That is, if you pay your dues early, the lower interest the credit will generate.
GCredit users must be at least 21 years old, a Philippine citizen, a fully verified GCash user, and must meet eligible credit requirements, according to the CIMB disclosure sheet.
It is good practice to update contact information whenever your personal details change.
GCredit risks or what you should watch out for
Users are required to pay the balance mentioned in their statement presented on a monthly basis, 15 days before or on the due date.
Pay a day to 30 days late and you will be charged a penalty of P200. If the payment is made much later, the following are the corresponding penalties:
- 31-60 days – P300
- 61-90 days – P400
- 90+ days – P600
Failure to pay and fulfill obligations presented by CIMB Bank will result in the cancelation of the user's credit facility and the bank will demand through a seven-day notice the payment for the full amount owed by the user.
Unlike other banks, CIMB Bank Philippines—which is regulated by the Banko Sentral ng Pilipinas—does not require collateral or a guarantor.
Similar to any other banking facility, GCredit opens up the risk that users' loan transactions lead to larger debt due to fees. This happens when, as a GCredit user, you are unable to manage your finances properly.
So if you think you cannot fulfill the obligations and pay part of the loan on time, do think twice about purchasing or paying on credit.
