How Credit Bureau Report would affect your Loan application?

[Dennis Ng]

Many people in Singapore are not aware that with the setting up of Credit Bureau since year 2002, all your credit information, including the loans that you currently have, for instance Housing Loan, Credit Card, Personal Unsecured Loans from banks are all shown in the Credit Bureau Credit Report.

Thus, if you have a poor payment record on your existing loans as mentioned above, when you want to apply a NEW loan, it is likely that a bank/finance company might NOT approve the loan application.

What should you do?

You should aim to maintain a good credit record.

Tips on how to maintain a Good Credit Record:
1. always keep track of the payment dates for your credit facilities and remember to pay before due date.

2. avoid multiple sources of credit, it you can help it. It is easier for you to keep track of your repayment when you have fewer credit facilities.

3. As far as possible, pay all your monthly outstanding credit card bill in full.

4. if you're unable to meet the payment deadlines, let your financial institutions know and expalin the reasons to them.

What is a consumer credit bureau?

A consumer credit bureau is a repository of factual information on the credit application and repayment records of consumers only. A credit bureau provides this information to its members (credit providers), under authorised conditions, to help them to determine whether or not the person applying for credit is likely to repay. In doing this, a credit bureau helps lenders to make better lending decisions quickly and objectively. It also guards against fraud. Credit bureaus are a common feature of developed countries around the world, and this concept is not unique to Singapore.