When buying a house, there are many documents for you to submit, some use the help of an agent while some get some help from their family and friends. Some of the possible documents you might need are Income Tax Assessment Notices, Digital Payslips, Copy of NRIC or Passport, CPF Contribution History and not to mention your credit report provided by the CBS.
Your credit report is more important to you than you think to help you easily secure your funding, here’s all you need to know about your Credit Score
Who Provides Credit Reports?
Credit Bureau (Singapore) Pte Ltd (CBS)
Singapore’s most comprehensive consumer credit bureau that has full-industry uploads from all retail banks and major financial institutions. CBS aggregates credit-related information amongst participating members and presents a more complete risk profile of a customer to credit provider.
This helps credit providers to determine the likelihood of the customer repaying, thus enhancing their risk assessment capabilities.
What is a Credit Report
Your credit report is a record of your credit payment history compiled from different credit providers. Your credit report gives you and the banks an insight of your credit repayment capability.
The report will give lenders, credit card issuers and banks a full picture of your financial standing, and help them make decisions over whether you should be issued with a credit card, given a loan, or even have your credit limit increased.
A Credit Score is a number used by lenders as an indicator of how likely an individual is to repay his debts and the probability of going into default. A CBS Credit Score is a four-digit number based on your past payment history on your loan accounts. The score ranges from 1000 to 2000, where individuals scoring 1000 have the highest likelihood of defaulting on a payment, whereas those scoring 2000 have the lowest chance of reaching a delinquency status.
In addition to this there is also a Non-Scored Risk Grades.
|HX||Public Record (with or without inquiry / with or without trade).
This means there could be a past and/or existing writ of summons/bankruptcy record filed against you.
|HZ||Currently 90 + / write off with outstanding balance greater than or equals to $300.
An HZ risk grade is accorded when you have outstanding balances >=$300 and have accounts loaded in any of the following status: D: 90 or more days past due F: closed with outstanding balance H: involuntary closure with outstanding/surrender of security with outstanding balance R: closed, restructured loan S: closed, negotiated settlement prior to charge off W: closed as default record by Member.
|GX||Inquiry record only (no Public Records / No Trades).
This means there is only self-enquiries and/or enquiries made by banks when there is no credit file.
|BX||Only inactive trade, “Other”, Bridging Loan, or Margin Trading account present.
This means either all your accounts are closed (with or without balance) or you only have bridging loan or margin trading account or accounts that are loaded as ‘Others’ by your lender.
|CX||Insufficient Credit Activity.
This means there is ‘very limited’ information such as Credit Applications and/or Accounts Status History as such, unable to derive a Score.
A Good Credit Score will help you secure a loan easier. Banks in Singapore seldom vary the interest rate based on your credit grade. If you have bad credit, you will either be given a smaller loan or be rejected.
This is why it’s important to keep your credit score healthy. The worse it is, the less you can borrow the loan that you requested.
You can request to get a copy of your credit file online, at any of the 62 SingPost branches, the Credit Bureau office, CrimsonLogic Service Bureaus or CASE office.
Credit Bureau Singapore