Credit Score in Singapore

Posted on 2014-03-07

People who wanted to keep track of their creditworthiness must have a credit score. This credit score is a numerical quantity that covers all your past payments in order to determine how great your credit is. Lenders are using this credit score as an assessment tool in evaluating the possible risks that they might be exposed to. Credit score in Singapore is more comprehensive and of better quality.

Things That Might Affect Your Own Credit Score

There are different things that you need to consider to ensure that your credit score would always be in good hands. It is very important that you are always familiar with these things in order to prevent possible damages to your credit score.

  • Applying for Numerous Loan Facilities

Lenders are responsible for keeping tracks of your credit records. Hence if potential bank lenders pulled your own credit report, they would completely put a mark or file on your credit score. Acquiring huge number of enquiries or files on your credit report would manifest to the lenders that they are taking in additional debt, which also increases credit exposures. In order to avoid this from happening, try to give limitations on yourself and select only few loan facilities where you are going to apply.

  • Bankruptcy

Bankruptcy and even court cases that you have experienced will extremely affect your credit score. Therefore, you need to avoid and stay away from bankruptcy and all other information that might possibly put your credit score down.

Ways to Improve Your Credit Score

Here are some of the effective ways that you must always initiate in order to assure that you will have good credit reputations.

  • You must always be responsible in paying all your bills on the right time since late payments would always manifest lower level of credit worthiness.
  • Pay all your debts completely on time and spare time to reflect on charging less. If you are going to pay fully all your debt and other charges, you will be acquiring interest free but if you are going to choose paying your debt just above its minimum, you will be having high interest rate.
  • Put limitation on the number of your credit cards. It is very effective to used only at least two credit cards in order to get higher level of credit score.
  • If you have unused credit cards, make sure that you are going to cancel this cards or closed its accounts.
  • Stay away from bankruptcy and other information that may affect your credit score.
  • Do not be ashamed if you were asked to undergo credit counseling since this would give you a great idea as to how you are going to make your credit score at its higher level.
  • Be responsible in keeping your credit reports since this would always help you in tracking your credit history and other intended payments you need to pay.
  • Do not practice applying too many credit accounts at once since this would just ruin your credit score. Choose to apply systematically and properly even if you are bombarded with credit cards offers. For instances that you are now going to close your credit account make sure that you do not have any more debts in this accounts in order to make sure of a good standing of your credit score.