Our Rating Methodology: How We Score Loan Apps
Contents
Our rating methodology is a 100-point scoring system for loan apps in the Philippines. One gate decides whether an app qualifies at all: SEC registration. Five weighted criteria then produce a score out of 100, and the same effective APR formula applies to every app we list. This page defines each part. Any score on this site can be questioned and rechecked. That is the point.
The gate before any points: SEC registration
An app does not enter any ranking until we verify it against the Securities and Exchange Commission (SEC) registry of the Philippines. We look for a lending company or a financing company. It must hold a valid Certificate of Authority. The status is recorded with a check date and re-verified after every SEC advisory.
Registration earns no points, by design. It is the floor for appearing at all. Unregistered, banned, or delisted apps get no score and no offer links. They get a status page instead. The verification steps themselves are described in our review process. In my experience, the gate catches more bad apps than the scoring ever does.
The five criteria and their weights
Once an app passes the gate, it is scored out of 100 across five criteria:
| Criterion | Weight | What we measure |
|---|---|---|
| Price transparency | 30 | Advertised rate versus our computed effective APR; whether all fees are disclosed before you apply |
| Total cost | 25 | Effective APR on the standard ₱5,000 loan over 30 days, including processing and transfer fees |
| Complaints and collection practices | 20 | Public complaints on harassment, contacts access, and collection violations, from open sources |
| Requirements and process | 15 | Number of documents and steps, and real decision time according to borrower reports |
| Payout speed | 10 | Time from approval to money in your wallet or bank account |
The weighting is deliberate. Price transparency and total cost together carry 55 points, because hidden fees are the most common way borrowers overpay. Complaints carry 20, twice the weight of payout speed, since abusive collection hurts borrowers more than a slow transfer. Speed is capped at 10 so a fast app can never outrun its own fees.
App-store ratings earn no points here. They are easy to game, and they say nothing about fees. Advertising claims score nothing either. Marketing copy enters the math only where borrower reports confirm it, or where an advertised rate misses our estimate.
Effective APR: one formula for every app
Every cost comparison on this site uses one standard loan: ₱5,000 over 30 days. We total everything the borrower actually repays, so interest plus the processing fee plus the disbursement or transfer fee, and compare it with the amount the borrower actually receives. The annualized formula:
(Total payments − amount received) ÷ amount received × 365 ÷ days × 100%
When an app deducts a service fee before disbursement, you repay against ₱5,000 while holding less than ₱5,000. The formula catches that. A fee hidden in the payout is still a cost, and now it shows in the annualized rate.
The result is always labeled "our estimate." The label is not modesty. It is accuracy. Lenders publish the nominal rate, and fees sit outside it, so our number is a reconstruction rather than their figure. Where the advertised rate and our estimate diverge, the transparency score drops accordingly. That is how a "low interest" app can end up below an honest, pricier one.
How we weigh complaints and collection practices
The complaints criterion looks at three things: harassment of borrowers, access to phone contacts, and violations during debt collection. Inputs come from public sources only. We summarize complaints with sources attached. We do not invent testimonials, and we never draw star ratings out of thin air. When an app's record improves or worsens, the score follows at the next review.
What the score cannot tell you
Scores have honest limits. This is a YMYL topic, so those limits matter. Worth reading before you trust any table.
- A high score is not approval odds. The lender decides your application, not our table.
- The effective APR is our estimate for the standard loan. Your actual terms can differ with amount, term, and promo offers.
- A score describes behavior to date. It does not insure you against future changes in fees or collection tactics.
- No score rescues an unregistered app. Without the gate, there is no ranking.
Updates, corrections, and dates
Lists and statuses are reviewed monthly, and off schedule after every SEC advisory. Advisories move faster than schedules. When the SEC flags a lending company, we re-verify the affected apps right away, not at the next cycle. Every list page shows the date it was last checked against the registry. Errors get fixed visibly. A correction carries a date and a "Corrected" label, per our editorial policy. Commercial terms cannot move any of this; the separation is documented in our affiliate disclosure, and the team behind it is described about LigtasLoan.
Frequently asked questions
Does a high score mean my application will be approved?
No. The score describes transparency, cost, and behavior; the lending decision belongs to the lender alone. We publish no approval promises, ever.
Why is SEC registration not part of the 100 points?
Because it is a gate, not a criterion. An app without a valid Certificate of Authority is not scored at all; it gets a status page instead of a ranking.
Can affiliate commissions change a score?
No. An affiliate deal cannot place an app, move it up, or keep it listed. Ratings follow this methodology, and the commercial team has no vote.
How often do scores change?
Scores are reviewed monthly and re-checked off schedule after every SEC advisory. Each list page shows the date.
Where the score helps you decide
Use the methodology by scenario. Choosing between two registered apps? Compare their effective APRs first, then the complaints block; the faster app wins only if the prices are close. Seeing an app with no score at all? Check whether it holds a Certificate of Authority before anything else. Doubting any number here? Re-run the formula above with the fees the app shows you, and hold our estimate against it. That recheck is the point of publishing the method.