This study examines the efficacy of the strategic credit management system on the financial performance of cooperatives in rural communities of Naval, Biliran. The research design adopted for this study was a cross-sectional predictive research design of the primary data collected from rural cooperative societies in Naval, Biliran. The data was obtained through the use of questionnaires administered to the employees of the cooperatives. The findings of this study showed that the strategic credit management system had a positive impact on the financial performance of cooperatives in rural communities in Naval, Biliran. The results indicated that the strategic credit management system increased the access to credit, improved cash flow management, increased the ability of cooperatives to manage their debts and enabled cooperatives to provide more services to their members. The study concluded that the strategic credit management system is an important tool for improving the financial performance of cooperatives in rural communities. The study recommends that the government of Naval, Biliran should create an enabling environment for the implementation of the strategic credit management system in rural communities. The government should also provide financial and technical assistance to rural cooperatives in order for them to effectively implement the system.