What’s in a Credit Report in Singapore and How to Interpret it?

Have you ever wondered what information is contained in your credit report and how it affects your finances? As a Singaporean, understanding your credit report is crucial since it plays a significant role in determining your eligibility for loans, credit cards, and even certain job opportunities. Your credit report is essentially a snapshot of your credit history, giving banks, licensed moneylenders, and other financial institutions an overview of your financial responsibility and creditworthiness.

So, whether you’re a young adult just starting to build your credit history or a seasoned professional looking to secure a home loan, this article is for you.

A credit report in Singapore is a comprehensive record of your credit payment history, compiled from various retail banks and major financial institutions by the Credit Bureau Singapore (CBS). It serves as a snapshot of your credit history, detailing your financial responsibility and creditworthiness.

Your credit report Singapore contains your credit score, a numerical expression ranging from 1000 to 2000 that indicates your risk level to lenders. This score is calculated based on the information in your credit report using an algorithm and may change over time as your credit data is updated.

To get your credit report, you can request a copy from CBS online, at SingPost branches, or at their office for a fee. If you’ve recently applied for credit, you may be entitled to a free report from the lender. Understanding how to interpret your credit report empowers you to better manage your finances and work towards an optimal credit score.

Your credit report holds immense importance in your financial life as a Singaporean. It is used by banks, financial institutions, and even some employers to assess your financial reliability and creditworthiness. When you apply for loans, credit cards, or other credit facilities, lenders refer to your credit report in Singapore to determine their willingness to lend to you and at what interest rate.

A higher credit score improves your chances of loan approval and helps you secure the best interest rates, potentially saving you significant money over time.

Even when renting a home or applying for certain jobs, particularly those in the financial sector, your credit report may be assessed. Landlords and employers view it as a reflection of your financial responsibility and trustworthiness.

Maintaining a healthy credit score opens up opportunities and makes navigating financial milestones much smoother. It enhances your eligibility for substantial commitments like home loans, ensuring you can secure the necessary financing for your HDB BTO or other housing needs.

On the flipside, a low credit score can severely limit your access to credit when you need it most. It may lead to loan rejections or higher interest rates that make borrowing much more costly.

This is why regularly reviewing your credit report in Singapore and understanding the factors that influence your credit score, such as prompt repayments and avoiding overleveraging, is crucial. By proactively managing your credit health, you put yourself in a stronger position to achieve your financial goals and weather any contingencies that arise.

Knowing key components of your credit report is essential if you want to learn how to interpret it.

Your credit report in Singapore contains your personal information such as your name, ID number, date of birth, gender, nationality, marital status and address.

This section displays all the credit facilities you own and your repayment activity over the past 12 months. Closed accounts will have the last 12 months payment status history as at the date of closure displayed for 3 years. Each account status is represented by an alphabetic code.

Previous enquiries record all inquiries made on your credit report by credit providers or employers in the past 2 years. Lenders may access your report when you apply for new credit, for periodic reviews, or for guarantor checks. Too many enquiries in a short period may negatively impact your credit score.

Default records refer to any payment defaults reported by CBS members. Negotiated settlement or full settlement defaults are displayed for 3 years, while outstanding, partial payment and sold off defaults are shown indefinitely.

If you have any bankruptcy proceedings, they will be retained on your credit report Singapore for 5 years from the date of discharge. During bankruptcy, you will be assigned a non-scored grade of HX.

Your credit score, a 4-digit number ranging from 1000-2000, is prominently displayed on your credit report. It is a numerical expression of your credit risk calculated using an algorithm based on your credit data at the time of enquiry. A higher score indicates lower credit risk.

This section shows your total outstanding balances across all your credit facilities, including any interest and fees accrued, computed based on your credit card and loan amounts.

Your credit score is a crucial indicator of your financial health and creditworthiness. In Singapore, credit scores range from 1000 to 2000, with higher scores indicating lower credit risk. Understanding how to interpret your credit score can help you make informed financial decisions and improve your credit standing.

The Credit Bureau Singapore (CBS) assigns risk grades to credit scores, which reflect the probability of default. Here’s a breakdown of the credit score ranges and their corresponding risk grades:

• 1911-2000: AA (Probability of default: ≤ 0.27%)
• 1844-1910: BB (Probability of default: 0.27% to 0.67%)
• 1825-1843: CC (Probability of default: 0.67% to 0.88%)
• 1813-1824: DD (Probability of default: 0.88% to 1.03%)
• 1782-1812: EE (Probability of default: 1.03% to 1.58%)
• 1755-1781: FF (Probability of default: 1.58% to 2.28%)
• 1724-1754: GG (Probability of default: 2.28% to 3.48%)
• 1000-1723: HH (Probability of default: 3.48% to 100.00%)

If your credit score falls within the AA to BB range, you have an excellent to good credit rating, indicating a low risk of default. Scores in the CC to FF range are considered fair to moderate risk, while scores below 1723 (HH) suggest a high risk of default.

Remember, your credit report Singapore is not just a document – it’s a reflection of your financial situation. By understanding what’s in it and how to interpret it, you can open doors to a brighter financial future.

If you’re facing challenges with your credit score or need assistance in finding the right loan products for your needs, platforms like MoneyIQ SG can help. As a loan matching platform, MoneyIQ SG connects borrowers with licensed money lenders, making it easier to access credit solutions that suit your situation. By leveraging such resources and taking proactive steps to manage your credit health, you can navigate your financial journey in Singapore with greater confidence.