Credit Bureau Report Singapore | 6 Ways to Improve your Credit Score

August 18, 2020

Written by

Multiply Team

What is a Credit Bureau Report Singapore (CBS)

A Credit Bureau Report Singapore (CBS) consists of all the information regarding your borrowings and repayment history. This particular report has information on how much debt you have, how you pay your bills, your home address, and other bankruptcy and litigation information.

When you purchase your CBS report, do ensure that the information you provide is accurate, as something as minor as a spelling error does not reflect kindly on the report.

The report also includes comprehensive information about your credit cards and loans. Your balance amount, credit limit, account type and status, and overall payment will be listed in your credit card report.

Other items in your credit report include loan balance, initial loan amount, and payment history. Public records such as bankruptcy, confiscation, repossession, and tax rights are also noted in a separate section of your credit report.

Images Source: Credit Bureau Singapore

More information: How to read your credit bureau

What is a Credit Score?

A credit score is a number that indicates the probability of default. CBS credit score is based on the data found in the credit report to tabulate a number that determines your level of credit risk.

The score ranges from 1000 to 2000, with individuals scoring 1000 running the higher risk of defaulting on repayments, while those scoring 2000 have the lowest chance of reaching default status.

Credit Score Risk Grades in Singapore

During a loan application, your credit score is only one factor for lenders to consider in the application process. Other factors include your annual salary, length of employment, bankruptcy/litigation information, and amount of credit facilities.

. CBS provides detailed, factual credit-related information about consumers who have credit or loan facilities to the lenders.

What Affects Credit Score?

Multiple variants affect your credit score.

  • Utilisation Pattern: Number of credit amount owned/used on accounts by individuals
  • Recent Credit: Newly booked credit facilities within a short time frame can lend a bad impression to lenders. Individuals should apply for new credit in moderation
  • Account Delinquency Data: Late payment records on your loan accounts will reduce your credit score
  • Credit Account History: An individual with a longer credit history is seen as more desirable to lenders, compared to one with scant records. Prompt payment records will promote credit rating, and 12 months of account repayment behavior is used for score calculation.
  • Available Credit: the number of accounts available for credit.
  • Enquiry Activity: Each time your credit report is drawn for reviewal of a loan, an enquiry is placed on your file. Too many enquiries on your report give lenders the idea that you are trying to take on more debt, hence increasing your credit exposure.

Why is Credit Bureau Report important?

Having a healthy credit report is vital as some companies are likely to check your report before deciding to employ you. The bank will also check your report before approving credit card and loan applications, examples being a mortgage or car loan.

Some employers include checking credit reports as part of their employment process. Your credit report affects many aspects of your life, so the information needs to reflect on you in an accurate and beneficial light.

The credit report is the only source for lenders to refer to when assessing your loan application. A low credit score indicates negative information, while a high score symbolises positive data.

Ways to Improve Credit Score

Make timely repayments

Your credit score will be affected if there are any delays in loan repayment. The score is impacted regardless of whether the bank waives late payment fees.

Ensure to always repay the minimum sum for credit cards before the billing cycle ends. For loans, let your bank know in advance if you are unable to pay on time.

Avoid making multiple loan enquiries in a short time

If you are continually making loan applications in a short period, you may be labelled as ‘credit hungry’. This behaviour is associated with someone who is experiencing financial difficulty.

Try to spread out your loan applications whenever possible. Avoid applying for multiple loans and enquires at one go.

Don’t have too many credit facilities open

Try not to have more than four to five credit facilities open; including your personal lines of credit, credit cards, personal loans, and such. It is not prudent to hold six or seven credit cards or lines, as repayment dates and differing billing cycles can get confusing to keep track of, increasing the risk of late payments. Close credit cards that you no longer use, and try to stick to one personal line of credit. If you find a credit line with lower interest rates, close your current one and switch over.

Never default on your loans

Defaulting stains your credit report indefinitely. A single major default can hinder you from ever getting a credit card, line of credit, or home loan. If repayment is tough, seek credit counselling and restructure your debt. It might lower your credit grade, but it is better than defaulting. Defaulting will also end in legal action if you can afford the repayment, but refuse to do so.

How to get your Credit Bureau Report?

Companies that you are involved with can send your debt information to the credit bureau, which then updates that data in your credit report. Most credit and debit accounts are updated every month.

There are a few ways to obtain your credit report from CBS, all listed here.

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Multiply Team

Multiply brings a fresh perspective to financial services. We offer simple and flexible financing for smaller businesses.

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