How To Check Credit Score In Singapore: A Guide To Smart Usage And Security Practices

Dexter Lee October 9, 2023

How To Check Credit Score In Singapore: A Guide To Smart Usage And Security Practices

Credit cards are becoming a crucial component of contemporary financial activities in Singapore. These handy plastic cards provide several advantages, including the ability to conduct transactions without cash and access to credit facilities. However, it’s crucial to comprehend how credit cards operate, the function of Credit Bureau Singapore (CBS), and how credit ratings affect your financial life to get the most out of your credit card while avoiding frequent mistakes. 

Our in-depth tutorial will examine the foundations of prudent spending and the security precautions related to credit cards in Singapore.

Let’s dive in!

What Is A Credit Report?

Definition And Importance Of Credit Reports In Singapore

A credit report contains a thorough history of a person’s credit, including their borrowing and repayment patterns. In Singapore, financial decision-making procedures heavily rely on credit reports, including loan approvals and employment checks. Lenders and employers use these reports to evaluate applicants’ creditworthiness and sense of responsibility.

Role Of Credit Bureau Singapore (CBS) In Producing Credit Reports

In Singapore, financial institutions, lenders, and other entities use credit reports created by the Credit Bureau Singapore (CBS). The following provides a summary of CBS’s role in the production of credit reports:

  • Data collection: CBS obtains credit-related data from several financial institutions. The data includes specifics regarding the borrowers, credit accounts, payment records, unpaid balances, and other pertinent financial information.
  • Data Upkeep: CBS ensures its acquired information is accurate and complete to provide valid credit reports.
  • Credit Report Generation: Upon request, CBS generates credit reports for individuals and companies based on the information gathered and stored. 
  • Credit Scoring: A person’s creditworthiness and risk level are represented numerically by their credit score. A higher credit score indicates a reduced credit risk.
  • Providing Credit Reports to Authorised Users: People asking for credit or a job rely on credit reports to determine their creditworthiness and financial responsibility.

Where Can I Get My Credit Report?

You can get your credit report in Singapore using a variety of channels, including online and offline. The locations where you can obtain your credit report are listed below:

Singaporean Online Techniques

  • Website for Credit Bureau Singapore (CBS): You can obtain a copy of your credit report online by following the instructions on the CBS website. The online procedure is typically simple; you can access your report immediately or shortly after submitting it.
  • Providers of credit reports: Online access to credit reports is available in Singapore through authorised credit report providers and the CBS website. When ordering your credit report online, be sure the vendor is credible and licensed.

Physical Locations In Singapore:

  • SingPost branches: In collaboration with Credit Bureau Singapore, SingPost offers this service. Ask the SingPost branch staff for assistance in acquiring your credit report, and they will walk you through the procedure.
  • Singapore Credit Bureau (CBS) Office: The staff at the CBS office will provide credit report services locally. You may learn the CBS’s location and working hours by visiting their official website or contacting them directly.

How Much Does It Cost To Get My Credit Report?

How Much Does It Cost To Get My Credit Report

Obtaining your credit report in Singapore may involve a cost, but obtaining it for free is also possible. Here’s an overview of the costs associated with getting your credit report in Singapore:

Costs For Getting Your Credit Report: 

  • Standard credit report: Credit Bureau Singapore (CBS) typically charges a small cost if you request a standard credit report outside of the scope of the free annual report. Depending on your individual credit report source or service, the price may range from a few dollars to over SGD 8.
  • Free annual credit report: Credit Bureau Singapore (CBS) must provide each Singaporean with a free annual credit report. You can make an online request for this report through the CBS website.
  • Free report after credit application rejection: If your credit application got turned down and you request a free credit report within 30 days of the rejection, you are entitled to one. The clause clarifies the reasons your credit application was denied.

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    What Is A Credit Score? Specifically, What Is A CBS Credit Score?

    A credit score is a quantitative indicator of a person’s or an organisation’s creditworthiness and risk. Lenders and financial institutions use it to determine how likely a borrower would repay their loans on schedule. Credit Bureau Singapore (CBS) offers credit scores in Singapore to assist lenders in making wise loan decisions. 

    CBS Credit Score in Singapore:

    What the CBS Credit Score Means:

    The CBS credit score in Singapore is a three-digit number ranging from 1,000 to 2,000. This score, which determines your creditworthiness based on several variables, is calculated. What the CBS credit score means is as follows:

    • Higher score: A higher CBS credit score, closer to 2,000, indicates a lower credit risk. Lenders typically view individuals with higher scores as more creditworthy and less likely to default on their financial obligations.
    • Lower score: A lower CBS credit score, closer to 1,000, suggests a higher credit risk. Lenders may perceive individuals with lower scores as riskier borrowers, affecting their ability to secure credit or loans.

    Risk Assessment And Sample Credit Report

    Your credit history and several other characteristics determine your CBS credit score. These elements consist of:

    • Payment history for credit accounts, including loans and credit cards. Defaults or late payments might reduce your score.
    • Unpaid debt, including loans and credit card bills. Your score could be impacted negatively by high credit utilisation.
    • Length of credit history. A higher score may result from a more extended credit history and a careful credit utilisation track record.
    • Your credit score can be positively impacted by having various credit products, including loans, mortgages, and credit cards.
    • New credit application. Lenders may become concerned if you apply for new credit frequently within a short period, which could hurt your score.

    A Step-By-Step Guide To Reading A Credit Report In Singapore

    Understanding your credit report is essential for managing your credit effectively. Here’s a guide to help in reading a credit report:

    • Account status history: It gives you a general summary of your credit accounts, including information on their status right now, past due amounts, and payment history. Your open credit accounts, closed credit accounts, and the status of each are all listed.
    • Previous inquiries: the organisations that have viewed your credit report are listed in this area under previous inquiries. Potential lenders may be concerned if you make repeated inquiries since it may be interpreted as an aggressive search for credit.
    • Records of default: It shows any defaults you have had on loans or credit cards. Your credit score and trustworthiness might improve dramatically if you keep up with payments.
    • Bankruptcy: Your credit report will contain information about any bankruptcy filings. A critical negative element that has long-lasting effects on your creditworthiness is bankruptcy.

    Is Credit Score Important In Singapore?

    Importance in Loans, Employment, and Financial Decisions in Singapore:

    In Singapore, your credit score is essential for several reasons:

    • Loans: Banks and other financial institutions evaluate your credit score to determine whether you qualify for loans, such as credit cards, personal loans, and mortgages. Loan terms are frequently more favorable the higher the credit score.
    • Employment: Certain companies could ask to see your credit record during work, especially if the position involves financial responsibilities. Your employability may be improved if you have a good credit history.
    • Financial Choices: Your ability to obtain utility, mobile phone, and even rental contracts gets impacted by your credit score.

    How Is My Credit Score Determined? What Causes A Bad Credit Score In Singapore?

    Factors Affecting Credit Scores in Singapore:

    Several factors contribute to the determination of your credit score in Singapore, and understanding them is crucial:

    • Payment history 
    • Outstanding debt 
    • Credit history length 
    • Recent credit applications, mainly frequent applications for new credit within a short period
    • Public records, including bankruptcy, liens, and judgments.

    Why Do Some Banks In Singapore Reject While Others Approve The Same Applicant With The Same Credit Score?

    For applicants with comparable credit scores, different outcomes may be possible due to variations in risk assessment among Singaporean banks. These variances are caused by a variety of factors, such as:

    • Debt-to-income ratio: Some lenders could be more cautious regarding their lending policies than others.
    • Income and financial stability: A better salary and steady employment might positively impact the likelihood of approval.
    • Debt-to-income ratio: Even with a decent credit score, banks may still see you as a higher risk if your debt-to-income ratio is high.
    • Particular lending programs: Various banks could provide unique programs with various approval standards. 

    How Can I Improve My Credit Score in Singapore, and How Long Does It Take?

    Tips for Improving Credit Scores in Singapore:

    Improving your credit score in Singapore is possible with these strategies:

    • Timely payments of loans
    • Reduce debt at all costs
    • Maintain a mix of credit 
    • Limit new credit applications 
    • Regularly check your credit report 

    Is there anything in my credit report in Singapore that cannot be remedied?

    Certain adverse factors on your credit report are considered difficult or impossible to remove in Singapore. These entries may significantly and permanently impact your creditworthiness. Here are two typical instances of unfixable problems in a credit report:

    Bankruptcy

    • Duration: bankruptcy records stay on your credit report for five years after discharge, limiting your ability to access credit.
    • Impact: Your credit score is significantly reduced, making it difficult to recover your credit.
    • Credit access: banks generally shunned recent bankruptcy filers, necessitating years of prudent money management.

    Default Records

    • Duration: Default records, which stay on your report for a shorter time than bankruptcy, indicate missed payments.
    • Impact: They drastically lower your credit score and make getting new credit difficult.
    • Access to credit: Even after removal, some lenders continue to be wary of borrowers with a history of defaults.

    Conclusion

    It’s vital to comprehend how Singaporean credit cards operate, the importance of credit reports and scores, and how these affect your financial situation. You may make sound financial decisions and seize better possibilities in the future by managing your credit responsibly and working to raise your credit score.

    Remember that CreditMaster is here to help you navigate the world of credit. To explore your credit options and take control of your financial future, click here to Apply Now.

     

    Dexter Lee

    Born with a pen in one hand and a keyboard in the other, Dexter's been crafting words into beautiful prose since he was old enough to scribble on his walls (much to his mother's chagrin). He's a self-proclaimed pun master, often leaving his coworkers in stitches with his clever wordplay. He's been known to strike up conversations with strangers and turn their stories into captivating content that keeps readers coming back for more. Despite his unconventional approach to life and work, Dexter takes his job as a content manager very seriously. He knows that every piece of content he produces has the power to make a difference in someone's life, and he's committed to using his words for good.

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