‘Good For’ Credit System - Libjo, Dinagat Islands

You wonder how credit system works in Libjo? We don’t have credit cards. People even don’t know what is Visa or Master card. We don’t even have advance banking like ATM (Automated Teller Machines). Credit (Utang) is so important and much more so if you don’t have cash in hand. And that happens all the time. We have what we call as ‘Good For System’. Most of the commerce in the Island is done by this method. Teachers, hospital and municipal staff everyone. This is usually done in stores and not by banks. A written piece of paper for items and goods borrowed, dated and signed. Some even use this paper note to pay workers instead of paying cash in advance. Including small stores getting goods from the larger whole seller stores (we call it Angkat-angkat).

Stores should have a good record keeping. They also maintain an excellent credit evaluation method. They should know whose good payer, whose bad payer and also maintains a credit limit. I believed this will only works in places where people know everyone.

Plain simple and easy. The use of this system is so convenient that you don’t need to carry cash or wallet for cards. All you need is a piece of paper enough to write down items to borrow and sign. Such a powerful piece of paper store requires printing name before the signature to clearly identify whose signing. Since some signatures are hardly recognizable. Why we call it ‘Good For’ System? Because the note always starts with the word ‘Good For’ in the top.

Typically credits (Utang) are paid in the end of the month’s works payday.