What is Credit Score?

A Credit Score will be used by banks or lenders to assess how likely you are to repay your debts. and the probability of going into default. It is an independent assessment of the individual’s risk as a credit applicant.

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Is Credit Score Important in Singapore?

Yes, very Important! Your credit report is used by financial institutions to determine whether or not they will lend to you and at what price.

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In Singapore, an organisation called Credit Bureau Singapore (CBS) gathers and aggregates information from participating members, which include banks, finance companies, and credit card companies, to provide financial institutions with a credit risk profile of borrowers.

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A good or bad credit score varies by product and the risk appetite of the lender. When it comes to real estate and properties, banks will need to assess your credit report before they issue you with an HDB Loan Eligibility letter (HLE).

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If you have bad credit, you have a higher probability of getting your home loan application rejected. This is why it is so important that you strive to keep a good credit rating.

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How to improve your credit score risk grade in Singapore

To improve your credit score, you should:

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1. Always repay loans on time

2. Avoid making multiple loan enquiries in a short time

3. Don’t have too many credit facilities open

4. Never default on your loans

5. Take and repay a loan to repair damaged credit

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So Kamal, how do I check my credit score?

You can get your report from Credit Bureau Singapore for only $6.42 and review it yourself! But to get a better understanding of the report, get your preferred realtor to help you review it.