Improving Your Credit Score At The Credit Bureau Singapore

Have you ever wondered how your loan applications are affected? Alternatively, why were some of your credit card applications denied? It’s most likely due to your credit score. Your ability to get personal loans and credit cards may be hampered if you have a poor credit score.

But what is a credit score, exactly? How can you find out what your credit score is, and how can you improve it? Here’s all there is to know about Singapore’s credit ratings and how to repair negative credit history.

What’s A Credit Score?

A credit score (CS) is a number that indicates how likely people are to repay their obligations and avoid defaulting. Your credit bureau report contains information about your credit payment history with several credit suppliers. A credit score is referred to as a “credit grade” in Singapore.

Independent rating firms examine individuals’ creditworthiness and provide the information to financial institutions such as banks and licensed moneylenders, resulting in credit ratings.

Credit scores are provided by two organizations in Singapore: the Credit Bureau Singapore (CBS) and the Moneylenders Credit Bureau (MLCB). The CBS provides credit scores to banks and financial organizations, whereas the MLCB provides them to licensed moneylenders.

You may check your credit score at either CBS or MLCB. Before applying for loans or credit cards, checking your credit score is usually a good idea. You might also want to work on improving your credit score. Another advantage of having a better credit score is that it might help you get a loan faster.

What Factors Influence Your Credit Score?

A number of variables influence your credit score. These are the factors taken into account by the Credit Bureau Singapore while calculating your credit score.

1. Credit Account History

How long have you been a devoted customer of the bank? Financial organizations will examine your credit history to see if you’re a trustworthy borrower. If you’ve been a consistent and loyal client for a long time and have always paid full and on time, your credit score (CS) will improve. This improves your credit score as well.

2. Enquiry Activity

Have you applied for a lot of credit cards? The financial institution will check your credit score every time you apply for a credit card. This request will be saved in the database.

A high number of inquiries might indicate to banks that you’re having financial issues or that you’re taking in on more debt than you can handle. This might lower your credit score and make you less creditworthy.

3. Pattern of Utilization

The lending facility’s usage pattern is referred to as the utilization pattern. It keeps track of how frequently you spend your money. If you’ve taken a lot of loans in a short period of time, banks may be concerned about your abrupt shift in borrowing habits.

Financial organizations may be less willing to approve your loan and credit card applications as a result of this.

4. Available Credit

What is your credit limit? If you apply for or have too many credit cards, your credit score will be affected. To enhance your credit score, try simply having a few credit cards.

5. Data on Account Delinquency

Data on account delinquency reveals how dependable you are as a client. Ever missed a credit card payment due or made late or partial payments?

The Credit Bureau Singapore will keep track of this delinquent conduct. It sends a message to financial organizations that you’re not a trustworthy or responsible customer. This erodes their faith in your capacity to make timely payments in the future. This can result in your credit score suffering.

6. Credit History

When preparing your credit report, the Credit Bureau Singapore also takes into account your recent account activity. Liabilities are the number of credit facilities that a bank has. If you’re looking for new bank promos, such as cashback, it’s best not to apply for them all at once. If you apply for many accounts at once, they could assume you’re overextending yourself. Your credit score may suffer as a result of this.

What Are the Consequences of Having a Low Credit Score?

A poor credit score might have an impact on your ability to borrow money in the future. The worse your credit record is, the less you may borrow when it comes to personal loans, business loans, and student loans. It’s possible that you’ll have problems acquiring a credit card.

It may also have some impact on your HDB loan application. If you don’t have a full-time job and don’t make regular CPF payments, this is even more significant because HDB will check your credit score to see if you can repay your loan.

In some cases, especially in the banking business, potential employers would request to view your credit score. Good credit history or score indicates that you are financially responsible. It would help if you started raising your credit score now to avoid similar problems in the future when you wish to take out a loan (from banks, licensed moneylenders, or HDB) or apply for a new credit card.

What Are Some Ways to Improve Your Credit Score?

Don’t worry if you have a low credit score right now! Over the course of a year, the Credit Bureau Singapore will keep track of payment promptness. That implies that if you settle your debts on time for a year, you may “erase” a negative credit history.

Are you unsure how to repair your bad credit in Singapore? Here are five things you can do to raise your credit score over time.

1. Pay Your Debts On Time

Do it before you get a letter telling you that you owe money. By the time you get a second warning letter, your credit score will have plummeted. Even if the bank waives late fines, your credit score will suffer as a result.

If you are unable to pay off all of your credit cards at once, pay off the minimum first before the monthly cycle finishes. However, in order to save money on interest payments, it’s still a good idea to pay off your credit card debts and bills in full every month.

If you find yourself unable to make payments on time, don’t panic! There are various options available for solving this issue. It’s important that emergencies do not cause all of your finances to disappear at once; otherwise, it will be more difficult when trying to re-establish credit due to missed or late fees (which can affect how people view their ability).

A good idea would be contacting a licensed moneylender immediately so they may help figure out an emergency repayment plan while also giving consideration toward making future loan repayments easier by providing debt relief measures such as reduced monthly costs through financial counseling programs.

2. Avoid Defaulting on Payments

Don’t let a debt go into default! This can be seen on your credit record for the rest of your life. It’s possibly the worst thing you can do to your credit score. A single default might make getting a credit card, personal loan, or house loan difficult.

If you can’t make the payback deadline, restructure your debt and seek credit counseling. That’s a lot better than going into default on loan. If you miss a payment yet have the funds to repay the debt, you may face legal consequences.

3. Reduce the number of open credit lines.

You’ll be confused if you have a lot of open credit lines. You can miss payments unintentionally since there are so many distinct billing cycles. Keep your credit cards to a maximum of four or five. To avoid paying an annual fee, it’s also a good idea to cancel credit cards that are no longer in use. One personal line of credit is generally plenty. If you locate one, switch to a credit line with a reduced interest rate, and remember to close your previous one!

4. Avoid applying for accounts that aren’t required.

If you’re juggling too many credit cards, it can be tough to keep track of your debts. To better manage funds and avoid adding more responsibility onto yourself (and potentially lowering that score), try not applying for any unneeded accounts- like an additional mortgage or car loan – when looking at opening new lines o credit!

5. Avoid taking out many loans in a short period of time.

Taking out many loans at the same time indicates that you’re in financial trouble. Avoid taking out several loans in a short period of time to avoid being characterized as “credit hungry.” Spread out your applications instead. If you truly need to, wait a month before applying for a credit card, and you’ll be OK.

This can increase the chances of getting a loan and keep your credit score from falling. You may also utilize internet loan comparison tools to identify the most affordable options. This will keep you from applying for too many loans at the same time. Here’s a rundown of some important dos and don’ts to remember:


  • Paying on time
  • Make all required payments.
  • If you can’t make a timely payment, notify the banks.
  • Close unused credit cards to keep your available credit facilities to fewer than five.
  • Each loan/credit card application should be separated by a month.
  •  Close accounts that are no longer needed


  • Make payments that are late
  • Pass or forget the billing cycle
  • Failure to make payments
  • Have too many credit cards
  • Applying for too many loans/credit cards at the same time
  • Apply for accounts that aren’t needed.

Do you require immediate cash yet have a poor credit rating? Consider visiting professional moneylenders, who are often more lenient when it comes to loan approvals.

Even if you have a low credit score, licensed moneylenders like 118 Credit are more likely to issue you a loan. This is because, among other things, they consider income and outstanding loans when evaluating loan applications.


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