GScore is a built-in credit score in GCash, and GCredit is a revolving credit line in GCash.
Think about the people that don’t have access to credit. They are the ones who fall prey to loan sharks and other predatory lenders. They get bogged down by paperwork and bureaucracy in government. They get refused by big corporate lenders and banks.
What if we could help them by giving them a way to borrow money safely, without collateral as long as they provide 1 official ID? In GCash you only need to be Fully Verified to access financial services.
Table of Contents
What is GScore?
GScore is a type of credit scoring that uses your GCash user data as a measure of your credit history. The higher the score, the more financially worthy you are considered to be.
In China, with a better Zhima Credit score, they can forego deposits with renting stuff like bicycles, or they can provide better loan rates for apartments or cars. Bad credit can mean more identification is needed for financial transactions. In the US, your FICO score determines your mortgage payments, your loan terms, and your credit card standing.
Here in the Philippines, we currently don’t have a nationwide centralized scoring system, however, we do have a credit bureau. Nonetheless, GCash created its own credit scoring system, using user behavior through transaction data as its source for scoring.
How does GScore work?
In the GCash app, your historical transaction data will be the source from which your GScore will derive. You can increase or decrease your GScore by the habits you practice regularly.
This may look like we’re giving up privacy to get credit but this is all voluntary. You can choose to ignore GScore in the app altogether. However, if you do decide to opt in you can get access to better deals and lending options in-app.
How can I make my GScore higher?
The algorithm GScore uses puts more weight on the quality of your transactions, meaning cashing in an amount and then simply cashing it out will not move the needle. Your GScore may increase or decrease depending on usage. If you are practicing good financial behavior in using GCash, then the GScore algorithm will reward you with a higher score.
Here are some simple tips to make your GScore go up:
- Keeping a healthy, positive balance; don’t leave your GCash wallet empty
- Linking a bank account then doing cash in and cash out via bank transfer
- Investing in GFunds by putting in money regularly
- Depositing money in your GSave account regularly, and using different GSave partners
- Using varied GCash features like Send Money, Buy Load, Pay Bills, and Pay QR regularly
- Using GCredit, GLoan, and GGives, and also paying off your loans without incurring penalties
- Use GCash regularly; you should be using it enough that GForest Energy Points matter to you
- Buying GInsure products and paying your dues diligently
- Checking out GLife stores and purchasing products
How often does your GScore readjust?
It is unclear when GScore readjusts, but we do know it does so regularly and seemingly looks at your transaction history data weekly. Do not get discouraged by a lowering GScore. Even if your GScore lowers, your credit limit will likely still remain the same as long as you keep using your GCredit.
What is GCredit?
GCredit is a line of credit provided by GCash, and it is tied to your current GScore. The higher the GScore, the higher the credit limit you can have.
GCredit is the one way we can utilize our GScore. Basically, it’s a revolving line of credit but with daily interest.
This is in line with GCash’s mission to provide financial services to people who are traditionally not covered by these. The truth is that Filipinos have the least credit card usage in the ASEAN region.
Can I cash out my GCredit?
You cannot cash out your GCredit. However, given a big enough GScore, you can be qualified to cash out a loan using GLoan. This is a feature where you are given a cash loan with terms depending on your GScore.
Can I use GCredit and transfer it to my bank?
No. If you would like to avail of a cash loan to transfer to a bank account, you can opt for GLoan.
Can I use GCredit and transfer it to another person via Send Money?
No, GCredit is only for personal use. If you would like to avail of a cash loan to send to someone else, you can opt for GLoan.
Can I borrow in GCredit via installment?
How do I get GCredit?
You need to be fully verified in the GCash app. Once you get to a high enough GScore, you will receive a notification that you can activate GCredit. The actual GScore that will unlock GCredit is not disclosed by GCash.
GCredit terms will depend on your GScore. There have been anecdotes from users that they were given big terms immediately, but for others, they were given smaller terms then these increased gradually from continued use.
Opting in to GCredit
GCredit is powered by CIMB Bank. This is why some promos with CIMB Bank are also tied up with having GCredit enabled. As such, you need to opt into agreements as CIMB is a third-party provider of GCredit.
Can I not use my GCredit?
You can opt not to activate GCredit. You will not incur any fees or penalties if you do so.
Can I cancel my GCredit?
You can have your GCredit terminated via GCash Support.
I have multiple GCash accounts. Does this also mean I have multiple GCredit accounts as well?
No, your GCredit is only tied to your main account.
Does GCredit have an annual fee?
There is no fee when using GCredit, aside from the interest and fees.
How do I unlock a GCredit of 30000?
In my opinion, I’ve personally achieved Php 30,000 GCredit by being able to hold on to a max 750 GScore for almost a year.
However, this may differ from your experience. I recommend you keep on using your GCash on as many features as you can.
How high is the interest rate?
If you let your GCredit accrue for a month, the total is by default 5% on top of the principal amount. GCredit also compounds daily instead of monthly.
What does daily compounding mean?
It means that the interest rate is computed per day, instead of per month. If you paid your GCredit sooner, you would pay a lower amount in total than if you paid a month after.
This also means that if you used GCredit today and paid it off today, there is actually no interest incurred.
Can I use the full amount again if I paid my GCredit earlier?
Yes. Another advantage of paying it off early aside from the lower interest payment is you can use your full credit again even before your due date (revolving credit).
For example, you have a Php 3000 GCredit. You used it to pay for your groceries amounting to Php 1500 today. If you pay it off the next day, then your GCredit returns to Php 3000, and you can borrow the full amount again.
Do you have a sample interest computation for GCredit?
If you used GCredit to pay 500 pesos to a merchant, and you plan to pay it off the week after. How much interest in total do you have to pay?
Given: Principal = 500 Interest = 5% = 0.05 Days Interest Incurred = 7 days / 30 days Formula is: Total Amount Due = Principal x (1 + (Interest x Days Interest Incurred)) So the total amount due after 7 days is: 500 x (1 + (0.05) x 7/30) = 505.83 What if you'd paid it later, for example after the full month? 500 x (1 + (0.05) x 30/30) = 525.00
The total amount to pay is 505.83. If you paid it after a month, you would have paid around 25 pesos more.
Keep in mind that the interest rate is based on the default 5% rate. A higher GScore can also mean a lower interest rate. Please check your GCredit page.
How long is the Repayment Period for GCredit?
You have a total of 46 days to pay your loan without penalties. The billing period is 30 days. Your due date is 16 days after the last day of the billing period. This is called the billing date.
So to summarize the definition of dates on the Manage GCredit page:
- The billing period is the date from when you started your GCredit usage and count 30 days from that date
- The billing date is the first day after the billing period
- The due date is the 16th day after the billing period
Your billing period and your due date both depend on the day you signed up for GCredit. Please take note that the loan has a daily interest.
So for the example below, you have your billing period from July 28 to August 27. Your due date is 16 days after August 27, which is Sept. 13.
The very last day to pay your dues will be on September 13. If you pay after September 13, then you will need to pay the penalty fee on top of your dues.
Why can’t I see the interest incurred on the Manage GCredit page during the billing period?
The interest due when you use GCredit is not reflected in the Manage GCredit page until the billing period ends. Understandably this confuses most first-time GCredit users. You will only see the interest due on this page when you’ve received your Statement of Account on the billing date itself.
This is why it’s so important to pay your GCredit off as early as you can since you can only see the total interest due when you receive your statement.
What is the Minimum Amount Due in GCredit?
As GCredit uses revolving credit, you have the option to pay only the minimum amount due. As long as you pay this amount, you won’t have penalties and your GCredit won’t be disabled.
The downsides are you would not be able to access your full GCredit amount (only the amount you paid for is replenished), and the unpaid amount will incur interest that would roll over next month (5% prorated daily).
The computation of the minimum amount due is:
Minimum Amount Due = 10% of the Unpaid Charges + Full Interest of the Month + Penalties (if applicable)
The unpaid charge is the amount you need to pay to make the GCredit balance zero. For example, if your GCredit is Php 10000 and you used Php 5000 of it, that is the unpaid charge. Fifteen percent of Php 5000 is Php 750 in this case.
The full interest is the interest incurred when you used your GCredit this month. This differs depending on if you paid early or not. Otherwise, it’s 5% prorated daily.
Penalties are applicable if you failed to pay on time previously.
What does the GCredit Statement of Account look like?
The statement of account is sent to your email after your billing period (at your billing date). For example, for the billing period above (July 28 – Aug 27), you would be receiving the statement on Aug 28. You would then have 16 days to pay your dues (September 13 from the example above).
For the screenshots below, I used my own statement as an example:
What happens if I don’t pay my GCredit dues?
You will incur penalties depending on how long you went on without paying your dues. Here is a list of the penalties corresponding to the number of days late (meaning after the due date):
- 1-30 days late = Php 200
- 31-60 days late = Php 500
- 61-90 days late = Php 900
- 91 days and later = Php 1500
So it is best to pay and settle as early as possible. If you are not able to pay after 3 months, your GCredit will be deactivated or revoked and your GScore will crash as well.
If you don’t pay your dues, GCredit will automatically debit your GCash balance. Any attempts to cash in or deposit will not be effective as the payment will take priority. GCredit will also be disabled until you’ve paid off your remaining dues.
If you’ve been delinquent for a while, you may receive a notice letter as well. Since your GScore also goes down, your GCredit will eventually become deactivated or revoked when it goes down enough.
Why did my GCredit amount decrease?
Some factors that may affect your GCredit include:
- You don’t use GCredit at all.
- You failed to maintain the proper GScore for your GCredit limit.
- Your GCredit is not maximized for your actual need of it. An example is if you have Php 10000 GCredit, but you only use Php 1000 per month, then it may also cause your GCredit to go down.
Where can I use GCredit in the GCash app?
You can use GCredit to pay merchants or bills in the GCash app. You can also pay on web pay/online payment merchants using GCredit. Additionally, you can also use GCredit with GLife merchants and with Alipay+ partners like Google, FoodPanda, and Apple Store.
Can I use GCredit in Lazada?
No, once you link your GCash account in Lazada, any payment will draw directly from your wallet balance. You can instead use LazPayLater for paying using credit.
Can I use GCredit in foodpanda?
No, you can only pay using your GCash balance.
How do I pay with GCredit via Online Webpay?
You will be able to select GCredit as a payment mode while paying with most web pay merchants.
How do I enable backup payments via GCredit?
You can also enable GCredit as a backup payment method in case your balance is not enough to pay for a subscription. This works with online merchants with GCredit enabled.
How can I link my GCash with Google Play and use GCredit to pay for subscriptions?
As you can use your GCredit as a backup to pay for online payments, you can also use this to pay for your Google Play subscriptions. You just need to link your GCash with your Google Play account.
To disable this function, you can always tick on the “Enable GCredit as backup” in the Online Payment Settings of the Manage GCredit dashboard.
Why can’t I use my GCredit in my payments?
You need to update your details with CIMB Bank (please see Opting into GCredit section above).
How do I pay via Scan QR / Generate Code?
For Scan QR, you just need to select GCredit as your method of payment once you reach the confirm payment page.
For Generate QR Code, you need to select it below the QR Code itself.
Can I use GCredit for payments in 7-11 / 7-Eleven?
No, you can only use your balance.
What merchants support GCredit?
Most merchants have this enabled across any payment method (scan-to-pay, online payments, GLife).
How do I pay my bills using GCredit?
You can see “Also accepts GCredit” on the biller itself. For example, here are the billers under Electric Utilities:
When GCredit is down or under maintenance, the “also accepts GCredit” line disappears. You cannot use GCredit with government billers and with third-party loan companies.
These are biller categories in the app that support GCredit:
- Electric Utilities
- Water Utilities
- Real Estate
Can I use GCredit to pay for Home Credit or credit cards?
No, as you cannot use debt to pay for more debt.
How do I check my transactions using GCredit?
You can use the Transaction History in the GCredit dashboard. This is real-time, so you can check immediately after your transactions.
You can also request an email with your transactions on the same page.
Can I still use my GCredit even if my GScore goes down?
Yes, until you reach a certain amount. If your GScore passes this amount limit or you remain inactive for a long time, your GCredit will be deactivated.
How do I reinstate my GCredit if I got deactivated?
You can file a ticket in the Help Center and request reactivation. Although, one of the requirements is a high enough GScore to be able to use GCredit again.
Why can’t I see the GCredit option when paying via QR or via pay bill?
When there is no GCredit option, either the merchant/biller doesn’t support GCredit payments, or GCredit is under maintenance in the meantime.
Can I use GLoan and GGives with GCredit?
Yes, you can all use them together. Also, using GCredit regularly also fuels your GScore to enable GLoan and GGives. Once you have them, you need to take care of them as these are all tied up to your credit score.
We talked about GScore and how it represents your creditworthiness as you use the GCash ecosystem. You can increase this by the quality of your transactions in GCash, not only by quantity — at the very least, you need to use GCash so much that GCash Forest matters to you.
The GCash app can provide a corresponding GCredit amount depending on your individual GScore.
GCredit is a safe way of providing credit to those who traditionally have no credit cards and no savings account, without leaning on high-interest lenders. Its main difference with credit cards is the daily compounding, compared to monthly credit cards. This makes it more flexible as you can pay it off early.
Another huge difference for GCredit is you need to pay it off fully before being able to use it the following billing period. It will also automatically debit your GCash balance once you have missed your payments.
- GScore – Tips on how to increase your GScore
- GLoan – How to avail of cash loans in GCash
- GGives – How to avail of the installment method in GCash
- GInsure – Buying cheap insurance within GCash
- GInsure Bill Protect – Buying protection for paying bills
I have a new e-commerce site where you can buy some e-books here: GCR Prime
After reading about what GCash is, here are the main GCash features: