Alwin Goh
When it comes to loan applications, your credit score or credit rating significantly influences the likelihood of approval.
Major loan providers such as banks consider it a primary factor in assessing your eligibility for a loan. A favourable credit score suggests a high likelihood of loan approval, whereas a low credit score makes it challenging to secure approval for your application.
Rather than getting scared or worried over a low credit score, it is crucial to understand how to check and understand your credit score. This knowledge empowers you to make informed decisions, allowing you to handle your debts effectively.
In this article we will provide you a guide on how you can check your credit rating or credit score in Singapore.
What Is A Credit Score?
A credit score is a numerical representation that indicates debtors’ ability to repay loans. Ratings company independent and objective evaluation of borrowers’ creditworthiness.
Lenders use credit scores to measure the risk associated with a credit applicant, primarily focusing on areas such as payment history on loans.
In Singapore, two credit rating systems are prevalent: Credit Bureau Singapore (CBS) and DP Credit Ratings.
If you wish to obtain your credit report, you can approach either CBS or the Moneylenders Credit Bureau (MLCB). Banks and financial institutions typically obtain customers’ credit reports from CBS, while licensed moneylenders get them from MLCB.
CBS Credit Score
| Score Range | Risk Grade | Probability of Loan Default (Min-Max) |
| 1911–2000 | AA | 0.00%–0.27% |
| 1844–1910 | BB | 0.27%–0.67% |
| 1825–1843 | CC | 0.67%–0.88% |
| 1813–1824 | DD | 0.88%–1.03% |
| 1782–1812 | EE | 1.03%–1.58% |
| 1755–1781 | FF | 1.58%–2.28% |
| 1724–1754 | GG | 2.28%–3.46% |
| 1000–1723 | HH | 3.46%–100.00% |
DP Credit Rating
DP credit rating is specifically for business loans. It serves as a financial risk model assessing a business’s default probability. Factors such as growth and profitability contribute to the assignment of a Probability Default (PD) score, which then corresponds to an expected DP credit rating.
The Importance of Credit Score in Singapore
Credit scores affect Singaporeans’ access to financial goods and services.
Here’s how credit ratings matter in Singapore:
Basis for Lending Decisions
Financial institutions base lending decisions on credit ratings. These ratings assist lenders evaluate borrowers’ creditworthiness and decide whether to provide loans.
Interest Rates and Loan Terms
Credit scores affect loan providers’ interest rates and terms. High credit scores usually mean cheaper interest rates and better loan terms, whereas poor credit scores might mean higher rates and less favourable terms.
Access to Credit Products
A good credit score opens access to credit cards, personal loans, and mortgages. Good credit history opens up more financial alternatives due to it being a crucial approval criteria.
Employment Considerations
A person’s credit score might have an impact on other aspects of life in addition to borrowing money. Some employers may include checking an applicant credit history as part of the hiring process. Having a healthy credit history might be beneficial to one’s financial reputation.
Financial Responsibility and Trustworthiness
A good credit score is often seen as an indicator of financial responsibility. On-time payments and responsible credit management contribute to a positive credit history, building trust with financial institutions and potential creditors.
Improvement Opportunities
A strong credit score indicates financial responsibility. Paying on time and managing credit responsibly builds trusts with financial institutions and future creditors.
Protection Against Identity Theft
Monitoring a credit score may prevent identity theft. Monitoring credit reports for irregularities and unauthorised activity may help an individual to spot and fix fraud.
Long-Term Financial Planning
Long-term financial planning benefits from strong credit. It may improve financial prospects, including house loan conditions. Maintaining credit responsibly ensures financial stability.
How to Check Your Credit Score In Singapore?
Your credit score is a pivotal factor determining your eligibility for loans. This underscores the importance of regularly checking your credit score. To access this information, obtaining your credit report is necessary.
What Is A Credit Report In Singapore?
A credit report provides a comprehensive credit payment history from retail banks and financial organisations. The data reflected in the report is collected by Credit Bureau Singapore (CBS). This report shows your debt repayment timeliness and debt settlement delays.
What Are The Details Included In The Credit Report?
The Singapore credit report includes your credit score and other information:
- Personal data like phone numbers and addresses
- A complete record of your credit queries
- Your 12-month credit repayment history
- Records of defaults
- Recent bankruptcy records, if appropriate
- Accounts closed within five years
- Credit card debt that needs payment
- Credit restrictions on accounts
- Overall credit score
Where To Get Your Credit Report In Singapore?
There are two primary approaches to obtain your credit score: the free method and the paid option. So, which one should you opt for?
Opt for a Paid Credit Report
This is the most common approach in Singapore for obtaining credit scores. You can obtain a copy of your credit report through online request, at any SingPost branch, or at the Credit Bureau office.
For online requests, you may submit an online request to the Credit Bureau Singapore (CBS) to receive your report.
The credit report is priced at S$8.00 with applicable GST, and payment for online transactions can be made through eNets, Visa, and Mastercard. Payments at our office are accepted in cash, as well as through eNets, Visa, or Mastercard.
If you opt for multiple delivery options for your report, there will be an additional fee of $2.02 for this service.
For individuals who applied for the CBS Credit Report at any SingPost Branch, an express service is available at a charge of $19.44. The soft copy of the report will be sent to the email address you provided within 2 hours from the time of application at the SingPost Branch.
Access a Free Credit Report
Since April 2016, individuals applying for new credit facilities, such as personal loans, car financing, or wedding loans in Singapore, are entitled to complimentary credit reports. It’s important to note that the credit report is provided regardless of whether the loan is approved or rejected. This aims to assist consumers in verifying the completeness and accuracy of the data contained in the report.
Free Credit Report for New Credit Facility Applicants
Consumers who recently qualified for a CBS credit facility may take advantage of this offer.
Upon the approval or rejection of your credit application, you will receive a notification letter. This letter will include details on how to redeem your free credit report. You have the opportunity to obtain a complimentary credit report from CBS within 30 calendar days from the date of the approval or rejection letter.
Complimentary Credit Report by HSBC
This promotion is valid until 30 November 2024.
Participating in HSBC’s programme allows HSBC to collect and use your personal information to call you to promote HSBC goods and services for three months, based on your credit requirements.
To be eligible for the redemption of the credit report, you must meet the following criteria:
- Be among the first 3,730 consumers to apply for this offer between 1 May 2023 and 30 November 2024
- Provide needed personal data in the promotion application form to HSBC.
- Give consent for HSBC to contact you for marketing purposes within 3 months of giving permission to this promotion.
- Have obtained a valid SingPass User ID, password, and unique access code from the HSBC Loan Specialist to view the credit bureau report online.
Similar to the general process, upon approval or rejection of your credit application, you will receive a notification letter specifying the channels for redeeming your free credit report. You can then proceed to obtain your complimentary credit report from CBS within 30 calendar days from the date of the approval or rejection letter.
What To Do If You Disagree With The Report?
As previously mentioned, the data on your credit report, which influences your credit score, is gathered from third-party sources. In the event that one of these parties, such as a bank or insurance company, supplies inaccurate information about you, it can negatively impact your score. If you identify such errors, it is crucial to notify the credit bureau responsible for the report. The agency will then take the following steps:
- Engage with the bank or insurance company to rectify and provide accurate information.
- If modifications are made to the report, you will receive notification about the updates.
Feel free to forward the revised credit report, along with the updated score, to the bank from which you sought a loan.
Learn how you can improve your credit score today.
The Bottom Line
Armed with knowledge on checking your credit score and understanding credit reports, you are now equipped to make informed financial decisions. Remember, maintaining a healthy credit profile is essential for effective financial management and securing loans.
In need of a personal loan despite having a bad credit score? Discover how you can get a personal loan with a bad credit score here.
