A credit report is generated by the Credit Bureau Singapore. This report gives a summary of credit acquisition as well as usage and repayment records. It is issued to the Singapore Bureau Credit Facilities, these facilities like member banks ask about the credit status of a borrower and compile then in a single report that makes up your credit score. You can also get your credit bureau report Singapore by approaching the bureau.
The credit record contains specific details regarding a borrower. This includes details such as a borrower’s name as well as their profile, payments on past loans, and credit score. This is excluding their phone number and physical addresses. Data about past credit assessment is used. Also, the manner of repayment for a year is indicated too.
Any default records including the dates are in the statement. Bankruptcy records for a period of 5 years after discharge are in it. All terminated and closed account and payment records going 3 years after closure. Lastly, aggregates of credit limit allowed and outstanding balances are included.
Role of Credit Bureaus
Credit Bureau of Singapore is a credit record repository. In Singapore, they provide information that enables members to assess a borrower. That the risk involved in lending to a borrower who applies for loans in Singapore and their the risk associated in their payment capability.
Informed loaning decisions help moneylenders protect the profit margins. Even so, the credit bureau does not provide credit facilities. Banks, however, are a great help and use this information regarding a borrower. By applying their own policies. They can choose to reject or accept credit.
If you need help on accessing your file, your credit release is accessible to bureau members and to you alone. The bureau members are only allowed to use it to assess credit. A written Code of Conduct regulates the access means. This has strict privacy regulations. These rules should be followed by its members.
Credit Report Data Providers
Just two bureaus in Singapore have the authority to offer credit reporting services. They also are permitted to run credit checks for their members. As gazetted by the Monetary Authority of Singapore (MAS), these are the Credit Bureau (Singapore) and DP Credit Bureau Ltd.
Associates of either of these Credit Bureau in Singapore can deliver a credit statement when a member needs help in accessing it, these include banks, moneylenders, and other financial institutions. Others are utility and banks that implement credit cards. The associates may also access data such as bankruptcy proceedings and payment records, they get from the public domain records.
Factors That Affect Your Credit Score
Your credit score is computed following based on several factors. These include:
• Recent applications – Moneylenders in Singapore that see several recent personal loan requests on your record. They may consider you a bigger financial risk. This is since you seem financially desperate. That is why you should limit the new credit you request to submit.
• Default – Overdue payments and late payments on your personal loans are noted here. These together with utility bills lower your credit score.
• Usage – This refers to the amount of credit that a borrower has used. It can also be what they owe on their credit account.
• Inquiries – All the new loan applications you make translate to a credit inquiry. These are then posted on your credit statement. Having too many credit inquiries within a short time does affect your score.
• Credit available – They get the difference between the total credit limit and the credit used. This will give the available credit. Having a higher financial credit availability can be good for your score.
• Credit history – By having a longer credit history, shows you are more stable. This means as a borrower you are considered less risky. When your history is short, not enough information is provided. This makes it hard for lenders to assess your credit-worthiness. It is for this reason you should start building your credit early. When possible you could start after you have reached the age of 18. The record also shows the repayment conduct for a period of 12 months.
Importance Of Credit Reports
A credit statement is important to get a higher loan amount, lower your interest rates, and get your loans approved immediately.
1. Higher Loan Amount
Your credit summary gives a breakdown of your repayment ability. This is based on the historical data on your record. This enables moneylenders and banks in Singapore to evaluate your ability to repay your loan. This is should they decide to grant you credit.
2. Lower Interest Rate
Realize that it is for your own benefit. More so when you maintain a good credit record. Overdue/non-payments and other credit defaulting are on record. This can stay on your record for many years after. This will lower your score. They might also make you not access borrowing chances in the future.
3. To Get Quick Loan Approvals
A credit score is often posted at the end of your report. This is usually indicated using a four-digit number. This is issued based on the information included in your credit report. This number can range from 1000 to 2000. Where 2000 shows the least tendency to default. The ranges in between are then set from AA to HH. Here AA shows a borrower is the least risk to lend to.
How To Get Your Credit Report
You could get your credit report from the Singapore Credit Bureau. Other sources are CASE offices, CrimsonLogic Services, and any SingPost branch. You will need to pay a transaction fee for the service. You can subscribe to the premium service known as “My Credit Monitor”.
This service evaluates your record every day. It will also send you an email when there are changes to the data. By using this service, it is easy to detect changes. It will alert you to possible identity theft. Thus you can take action to prevent any major damage.
Check and Monitor Your Credit Report
When you monitor your report, you can prevent fraudulent acts against you. This is where an individual uses your private details and rating to get credit in Singapore. Although other aspects play into the getting of credit from a lender. You may greatly improve the chances of getting credit. This you can do by having maintained a great repayment record. This will translate to a high credit score.
It is advisable that you check your report at the least monthly. This way you will know the status of your credit. You can obtain this information from both bureaus. You need to compare the records to make sure they are correct.
Your record should show the actual state of credit history. It can sometimes happen that erroneous entries are posted. This is not uncommon for these financial reports. This is why you need to ensure to keep track of your report. This will ensure the accuracy of your records and rating.
Your credit statement is a record of your credit payment history compiled from different credit providers. Your credit history can directly impact your life. It can make important transitions, such as getting a personal loan for personal needs, funding your business, among others.
Loan providers depend on credit statements to make financial decisions. Take Raffles Credit does not solely rely on good credit scores, however, it assesses the borrower’s ability to repay the loan as well as the current financial situation. Raffles Credit is committed to helping borrowers to get out of debt that’s why it aims to loan a borrower the optimal amount that he or she is able to repay then payment comes.
If you are looking for the best money lender in town, then check Raffles Credit and you’ll never have to worry about being trapped on loan providers that impose high-interest rates and ridiculous payment terms.