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Credit Report Singapore: How to obtain one

Nikki
7th Aug 2022
5 min read

Most adults in Singapore have heard of a credit report even if they have not personally obtained one. It is almost always the first document that any lender, from major banks to licensed money lenders, will refer to when they are considering a loan application.

What info does a credit report contain?

A credit report in Singapore is divided into ten sections.

Section 1: Data Provided and Summary

This is where you will find personal details such as your full name, NRIC, date of birth, and postal code.

It also lists basic financial credit information, including the date of your first credit record on file, the number of credit lines in your name, the number of defaults and bankruptcies, your secured credit limit and unsecured credit limit, etc

Section 2: Personal Details

This is where you’ll find other additional details such as gender, nationality, marital status, and address

Section 3: Additional Names and Addresses

You’ll be able to see all the addresses and names associated with or ever have been used by you for your NRIC, bank accounts, credit cards, cheques, etc.

Section 4: Account Status History

This section details the types of credit products you have (e.g. home loans, credit cards, personal loans), the grantor banks, dates of opening and closing the account, overdue balances as well as details of how prompt you’ve been at making full payment for each account for the last twelve cycles.

Section 5: Previous Enquiries

This section shows a record of all recent requests for your credit report in Singapore, either by yourself or banks and money lenders.

Section 6: Bureau Score

This section uses all the information from Sections 1 through 5 to come up with the individual’s credit score, risk grade, risk grade description, and the likelihood of default.

Section 7: Narratives

Any other important information about your account(s) will be illustrated here. For example, if you’d applied for a mortgage deferment due to the pandemic, the date and type of request would be narrated in this section.

Section 8: Adverse

Any adverse information regarding the individual would be written here.

Section 9: Aggregated Outstanding Balances

This section shows an overview of all your financial products’ secured balances, interest-bearing unsecured balances, non-interest-bearing unsecured balances, and exempted unsecured balances.

Section 10: Aggregated Monthly Instalment

The monthly instalments show the amounts for each credit facility for the previous month and the total amounts for the previous five months.

Who can obtain a credit report?

Any legal resident of Singapore, including foreigners, can apply for a copy of their credit report.

Apart from individuals, banks and financial institutions can obtain your credit report for credit assessment purposes. Some licensed money lenders will also look at your CBS credit report when assessing your loan application.

Privacy safeguards regarding credit reports

All data in a credit report is obtained from the Credit Bureau (Singapore), also known as CBS. The company practices the highest level of information safety and security and there has never been a breach of CBS data.

What if there are errors in your credit report?

Your credit report may contain errors and such mistakes can affect your personal loan interest rates. If you spot an error, contact the bureau immediately. You will have to provide evidence to dispute any data on the report.

Why should you consider getting your credit report?

Both individuals and business owners can benefit from knowing their credit status.

Accelerated loan approval

· Business owners: A credit report is almost essential for current and aspiring business owners. Whether you are setting up or expanding a business, you will need capital. A good credit report will qualify you for a legal loan in Singapore faster and help you make the best use of opportunities as they present themselves.

· Individuals: Whether it is a medical emergency, sudden vehicle breakdown, or legal fees, good credit gives you the money you need quickly. You also can avoid such situations by learning how to set personal financial goals.

Lower interest rates

A good credit score informs lenders that you are a reliable borrower. They will offer you lower interest rates and may even waive certain fees and penalties. Hence, the better your score, the less you will waste on additional expenses.

· Business owners: Lower business loan interest rates to set up or expand operations.

· Individuals: Lower personal loan interest rates to be used for a variety of purposes.

Higher credit limit

· Business owners: Lenders appreciate individuals and businesses with good credit because they regard them as safe investments. They will extend higher credit limits, which means that you have access to more funds if you want to expand, or if you need to weather a slow business period.

· Individuals: Expenses such as weddings, school fees, and renovation can be huge. A high credit limit gives you all if not most of the money you need instantly.

Where to get your credit report in Singapore

Credit reports in Singapore are issued by CBS or Credit Bureau (Singapore). CBS is a joint venture between the Association of Banks in Singapore (ABS) and financial services company Infocredit Holdings Pte Ltd.

Where does CBS get its information?

ABS members share their credit information with CBS. CBS then organises this diverse information by the individual and shares it in the form of a credit report when a valid request is made.

How to get your credit report

There are a few ways you can obtain your credit report:

Cost	Eligibility
Free	New credit facility applicants (within 30 calendar days from the date of approval or rejection letter)
Free	First 2,500 customers to complete the free credit report by HSBC application form between 01 May 2022 and 30 April 2023, both dates inclusive
$6.42 (GST included)	Anyone can purchase online via eNets or credit card

Bottom line

The CBS credit report only includes your records with major banks and other financial institutions in Singapore. To obtain your loans and repayment records with licensed money lenders in Singapore or check on your overall financial health, you can consider buying your credit report from the Moneylenders Credit Bureau.

A credit report may not be a huge part of your financial plans but it is a good-to-know when you find yourself in a situation where you need to apply for a personal or business loan. Reach out to us to find out more about any legal loan in Singapore that may be suitable for your needs.

Disclaimer

While we try to provide the most accurate information on this website, it may not reflect the most current developments. The information on this website may be changed without notice and is not guaranteed to be complete, correct, or up-to-date. All information provided is for informational purposes only and shall not be relied upon as professional advice. We shall not be liable for any loss or damage resulting from the use of this website.

Is it difficult to apply for a personal loan in Singapore?

Galaxy
9th Nov 2022
4 min read

Whether you are a Singapore citizen, permanent resident, or foreign worker residing in Singapore, securing a personal loan in Singapore has never been easier. As long as you qualify for the type of loan you are applying for, the process is pretty simple, quick, and straightforward. If you’ve reached a tough spot financially and are in need of emergency cash with the lowest personal loan rates, here are some tips you should follow when considering applying for a legal loan in Singapore.

1. Check your credit score

A credit score is used by banks, financial institutions, or licensed money lenders to gauge the likelihood of you paying off your loans on time. If you want to get the lowest personal loan rates, you have to have a substantial credit profile that shows a higher credit score or rating.

The higher your credit score, the more likely you are to get approved for a personal loan in Singapore as it shows creditworthiness. As these credit reports are sourced from a credit bureau, you will also be able to source your own credit report by requesting a copy online or from Credit Bureau Singapore for $6.42.

2. Don’t apply for too many loans at once

For a smooth sailing loan application process, you have to ensure you do not have too many loans running at once. When you apply for too many loans at one go, lenders will raise an inquiry with the credit bureau to evaluate your creditworthiness. These can be considered hard inquiries where a lender is initiating a credit inquiry on behalf of the borrower.

Bear in mind that with each direct inquiry from a legal moneylender, there is a possibility that the loan evaluation process will be further scrutinised. Rather than having multiple credit inquiries, it is much more ideal to figure out the various types of legal loan options available and identify the right fit before applying for a loan.

3. Plan your budget before applying

As with all financial plans, it is best to budget well at the very beginning, before you even apply for a loan. This step is crucial to ensure that you can repay the loan on time to avoid late fees and extra charges. If you have a gauge on the range of monthly instalment payments that you are financially able to commit to, it will be much easier to choose the type of loan in Singapore.

Doing it this way would mean that you would already know the maximum interest fee you can commit to. Budgeting wisely also requires you to look at timelines to help you work out a comfortable repayment agreement or loan tenure.

4. Prepare substantial proof of income

You must have the right documents so that you can have a smooth sailing loan application process. These include your NRIC; proof of income and employment documents such as your last 3-6 months of payslip or income tax notice of assessment (NOA); current credit report; past CPF statements; proof of residence or tenancy agreement; employment letter; employment pass and bank statements (for foreigners).

It is usually not difficult to secure proof of income for employees having a monthly salary arrangement. However, other employment arrangements like commission-based work or self-employment may prove more complex for verifying future income. Regardless of the reason, it is usually a must for borrowers to find a way to prove that they will honour their debt.

If you are applying for a personal loan without formal proof of income, you can consider showing past bank statements that indicate regular payment from an employer or credit card statements to show that you have paid your bills on time. The credit history reflects your past credit management so it can be used as an indicator of creditworthiness. Documentation of annual tax returns from IRAS can also help your cause. You should also protect your credit score to get a higher rating. Lastly, you can also consider providing a larger amount of downpayment to secure a reasonable loan tenure.

Ultimately, applying for a personal loan in Singapore is not difficult. As long as you follow the tips above and ensure you have the necessary documents on hand, you will experience a quick and seamless application and approval process.

Interested in securing a personal loan in Singapore? Find out more about your legal loan options with us.

4 Simple Tricks to Repay Your Personal Loan in Singapore

Galaxy
26th Sep 2022
4 min read

Your personal loan in Singapore was approved by a licensed moneylender – congratulations! Now comes the challenging part – sticking to the repayment schedule. There are two reasons why it is important to repay your loan as scheduled.

Firstly, there are monetary penalties every time you are late on a payment. This includes:

A one-off late payment penalty every time you fail to pay the monthly instalment by the set date. This fee is capped at $60 per month.
Interest on the amount due. This is calculated at up to 4% of the amount due for that month (not the outstanding loan balance).

Secondly, the cumulative debt that you incur as a result of these penalties makes it more likely that you will default on future payments. Remember, a failure to meet your financial obligations today can have catastrophic effects on your credit rating for years to come.

But not to worry, we have got your back! Here are 4 simple and proven ways you can use to adhere to your personal loan repayment plan.

1. Adjust the instalment due date

If you are employed full-time and have a constant monthly stream of income, it is important to keep your payday in mind when it comes to repaying your personal loan. Also consider last-minute purchases and emergency expenses, which will affect your repayment schedule.

Once you have a clear idea of when you receive your salary every month, approach your licensed moneylender and ask for a revised due date for your monthly instalments. As there may be administrative expenses involved with the amendment, it is best to be absolutely sure before informing your lender.

2. Know your finances

This method is all about how well you know your finances. Before you can even determine a feasible repayment plan for your personal loan in Singapore, you need to first assess your current income and expenses.

While there are many free apps today that can help ease the burden of recording your daily personal finances, you still need the discipline to keep this habit consistent. Just think of how invaluable this information will be in helping you see where your money is going and how you can cut back on unnecessary expenses in time for your next repayment.

3. Prioritise your debts

Now that you know where to cut back on expenses, the next step is to determine where your income will go. All debts are not created equal and you have to determine the order of which gets paid first and that depends on two factors:

Size of each debt
The interest rate on each debt

Together, they dictate the amount by which your debt increases if you do not pay them in full. The idea is to gradually climb out of the debt by ensuring that you either maintain or reduce the amount owed.

You can use either the debt snowball or debt avalanche strategy to accelerate debt repayment.

Debt snowball – List all your debts – from smallest to largest – and make the minimum payment every month to prevent further increase in debt. Pay off the smallest debt first as best you can, and make minimum payments to the remaining debts with any money left. Over time, you will pay off that debt, and you can apply the same strategy to the next smallest debt.

Debt avalanche – List all your debts and make the minimum payment on all debts every month. Pay off the debt with the highest interest using any money that remains. Over time, you will pay off that debt, and you can apply the same strategy to the next high-interest debt. In this way, you are essentially decreasing the amount of interest you are paying.

4. Be mindful of your spending

Last but not least, budget carefully. Before taking out a personal loan in Singapore, be sure to assess your current spending and ensure that it doesn’t clash with your repayment plan. This comes with some financial planning and discipline.

If you realise you’re someone who tends to overspend, then it is time for some serious introspection on your finances and addresses the true cause of perpetually being in debt. How you spend is in your control and it is one of the best long-term solutions to having a solid financial future.

Good thing is, we’re here to help you.

Galaxy Credit is a licensed money lender that specialises in helping you secure a personal loan in Singapore. Talk to us today about our loan solutions.

What documents do I need to apply for a personal loan?

Galaxy
26th Sep 2022
3 min read

When applying for a personal loan in Singapore, you need to ensure you have all the documents required to get a loan. You should be aware of the documents that are needed and know how much you can borrow. Having your income details and proof of employment on hand will certainly help with your application.

The documents that are required will depend on the bank or moneylender you choose but generally, they will require these essentials:

Proof of Income
ID copy
Employment information, like Employment Pass or CPF statement.

Proof of Income

If you want to borrow money from banks or financial institutions then an income statement will be required. The bank will ask for your income level and salary details so they can check if you qualify for a certain amount of loan.

In short, documents you may need for proof of income includes:

Contribution statement to your Central Provident Fund (CPF)
Latest income tax Notice of Assessment
Latest computerised payslip
Bank statement showing salary crediting into your bank account
Other income statements as required

ID copy

If you are applying for a personal loan, the lender will ask for a photocopy of your identification card, like your NRIC or Employment pass card just to confirm your eligibility and legal status.

Employment information

If you are applying for an employee loan, then the lender will ask for your employment details such as your Employment pass card or CPF statement. The lender might also ask for proof of employment like an employment contract, job offer letter, and details of salary and bonus.

Tips to secure a personal loan in Singapore

You should carefully evaluate your current financial needs and your earning power. Plan and record your monthly budget and expenditure to establish a monthly repayment plan that you are comfortable with.

Loan Amount

This is the most important factor to consider when applying for a personal loan in Singapore. Knowing the correct amount of loan required will allow you to choose the right type of personal loan. It is also important that you obtain the lowest personal loan rates that suit your needs and try not to surpass your borrowing limit.

Loan Tenure

The loan repayment period is also crucial in determining the length of time you have between monthly instalments. Ideally, you will plan to quickly repay your personal loans and avoid incurring late payment fees and an accumulation of unwanted debts. Remember, the inability to repay your loans on time and in full will eventually affect your credit score.

Fees

Besides the obvious interest rate fees, there are also processing fees charged by both banks and moneylenders to process your loan application. Do check thoroughly to determine if other hidden fees are involved as they will affect your total loan amount. Also, clarify on late payment fee charges and their late payment interest rates before signing anything.

Avenues for personal loan promotions

Sometimes, there are special loan deals offered by both banks and licensed moneylenders. Banks, which are typically the big players in Singapore’s finance hub, often advertise personal loan promotions on an ad-hoc basis via their websites, newspapers, financial sites, or social media platforms. Licensed moneylenders, on the other hand, advertise their services on their corporate website, business directories, or via posters at their registered offices.

If you are looking for a flexible and affordable loan in Singapore, visit Galaxy Credit. We offer the lowest interest rates on our loans and have a quick approval process. We have personal loans to cater to your needs. Talk to us and we will help you fill out an online application!