Financial services have evolved to encompass a wide array of offerings, including digital wallets like GCash, making shopping and as practical as paying bills easier and more convenient.

With the emergence of these platforms, a new metric has gained attention – the GScore. However, it’s essential to distinguish between the GScore and the traditional credit score, as they serve distinct purposes and have varying implications for your financial life.

In this article, we’ll explore the differences between these scores and provide valuable insights on both.

GScore vs. Traditional Credit Score

GScore is not to be confused with your traditional credit score. While both assess your financial behavior, they operate in different spheres:

• GScore: This score is unique to your activity within the GCash app. It reflects how active and engaged you are as a GCash user, considering factors like wallet balance, bill payments, and loan management within the GCash ecosystem.
• Traditional Credit Score: In contrast, your traditional credit score is a comprehensive assessment of your creditworthiness based on data from various sources, including credit bureaus, banks, and creditors. It encompasses your history of payments for credit cards, loans, and mortgages from outside the GCash ecosystem.

Understanding Very Poor Credit Scores

If your GScore or traditional credit score falls within the range of scores from 300 to 579, it is considered “Very Poor.” Let’s take a closer look at what this means:

• GScore: A GScore of 350, for instance, is significantly below the average GScore. While it may affect your experience within the GCash app, it doesn’t have the same impact on traditional financial opportunities as a traditional credit score.
• Traditional Credit Score: Similarly, a FICO® Score of 481 is considerably below the average credit score. In the US, individuals with credit scores under 579 are more likely to become seriously delinquent on debt payments, going more than 90 days past due.

Tips to Improve Your GScore

Now that we’ve distinguished between the two scores, let’s focus on enhancing your GScore within the GCash app:

• Pay Your Dues on Time: Timely payments are crucial. Not paying on time may make you ineligible for future credit transactions until you settle your dues.
• Maximize Your GCredit Line: Utilize your GCredit line responsibly, spending within the limits set by GCredit.
• Cash In Regularly: Maintain a healthy wallet balance by regularly cashing in funds to your GCash account. Active transactions, such as paying via QR, buying load, and settling bills, positively impact your GScore.
• Invest in GInvest: Frequent investments through GInvest can demonstrate your financial commitment within the GCash ecosystem.
• Make GSave Deposits: Prioritize saving for your future by regularly making deposits into your GSave account.

Understanding the difference between your GScore and traditional credit score is vital for managing your financial life effectively.

While a Very Poor rating in either system can present challenges, they have distinct implications. Your GScore primarily influences your experience within the GCash app, while your traditional credit score plays a critical role in your broader financial opportunities.

By following the provided tips, you can work on improving your GScore and, in parallel, consider measures to enhance your traditional credit score for a more comprehensive financial well-being.