Proven Steps to Building a Good Credit Score

They say a good name is better than gold, I say, a good name gets you the gold. A good credit score is an invaluable asset. Without it, licensed moneylenders would decline to advance you loans. On the other hand, your score is fair; they would only agree to lend a limited sum under very stringent terms.

But why do you need a good credit score? In today’s generation, credit is an undeniable asset for progress. It is a bridge to meet our personal financial goals as well as business growth. Below are proven steps to building a good credit score

What Does Credit Score Mean

Moneylenders in Singapore use credit information and reports compiled by two bureaus authorized by the Monetary Authority of Singapore, the DP Credit Bureau (DPCB) and Credit Bureau Singapore (CBS). The bureaus derive your credit score using information such as the number of credit facilities you hold; your recent repayment history; default data; statistics on bankruptcy and information on relevant financial litigation against you. The credit score ranges from best to worst as depicted below.

  • AA –Highly unlikely for default to occur (below 0.27%).
  • BB- The likelihood of default is low (Between 0.27% and 0.67%), but there exist some adverse records, such as late repayments.
  • CC – In this grade, the chance of default is between 0.67% and 0.88% due to evidence of previous late repayments and delinquencies.
  • DD – The likelihood of default exceeds 0.88% as there exist facts of previous late repayments, delinquencies, and default.

Beyond DD the credit score is considered deplorable, and most licensed moneylenders would be unwilling to advance you any facility.

Other factors that contribute to your final credit score include:

People who have little or no credit activity, they are classified as CX. Those who have existing bankruptcy and other financial related litigation files are categorized as HX, and those who have records of written off loans that exceeded a balance of $300 are termed as HZ.

(Source: Credit Bureau Singapore)

Building a Good Credit Score

To build a good credit score; first, you have to get credit. Most moneylenders in Singapore regard an unrated applicant to be riskier than an already rated one. The easiest way to start on this journey is through acquiring a credit card.

When you seek to get a loan, do your homework. Compile a list of moneylenders you would like to engage, and then compare using different moneylender reviews. Avoid too many inquiries as this will portray you as being “credit hungry” and financiers would be hesitant to lend. Also, avoid having too many loans or taking too many credit cards simultaneously. This will only confuse you due to the several repayment dates.

Now that you have borrowed from your best moneylender ensure all your repayments are made on time and in full. Avoid reminders at all costs and if it is a credit card, at least make sure that you pay off the minimum required amount before the expiry of the billing cycle. If on the other hand, you have a personal loan or mortgage and have a temporary cash crunch, talk with the bank and arrange for a way around, just don’t default.

Previous records of bankruptcy and on-going litigation will prejudice your future loan applications. To counter this bias, re balance your loans to have a larger proportion of long-term (secured) than short-term facilities.  This depicts you as a financially stable person who is in control of your finances and takes the time to plan financial ventures.

When you take the above steps, you will build a good credit score, and have a financially stable future.

Best Review Licensed Moneylender

To improve your credit score another method is get a debt consolidation loan. By using this loan to settle all others loan then focus into one bill. 1st Credit SG Pte Ltd is a best choice to get debt consolidation loan. Other than that, we are offering various loan thing including business loan, individual loan, etc.

1st Credit SG Pte Ltd is a top Moneylender Open on Sunday in Singapore. Our well train consultant is stand by to give best explanation with you understand language to every customer.

Visit our site to get further information.
Call us now +65 6266 5422 or email
Drop by our office at 149 Rochor Road #01-07 Fu Lu Shou Complex Singapore 188425.

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