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How Will Your Credit Report Impact Your Unsecured Loan Application?

A credit report is generated by the Singaporean Credit Bureau. This report gives a summary of credit acquisition. As well as usage and repayment record. It is issued to the Bureau members. These members ask about credit status of a borrower. You can also get your credit report by approaching the bureau.

The credit report contains specific details regarding a borrower. This includes details such as a borrower’s name. As well as their profile. This is excluding their phone number and physical addresses. Data about past credit assessment is used. Also, the manner of repayment for a year is indicated too.

Any default records including the dates are in the report. Bankruptcy records for a period of 5 years after discharge are in it. All terminated and closed account records going 3 years after closure. Lastly, aggregates of credit limit allowed and outstanding balances are included.

Role of Credit Bureaus

Bureaus are credit records repositories. They provide information which enables members to assess a borrower. That the risk involved in lending to a borrower who applies for loans.

Informed loaning decisions help moneylenders protect the profit margins. Even so, the bureau does not provide credit facilities. Banks, however, use this information regarding a borrower. By applying their own policies. They can choose to reject or accept credit.

Your credit report is accessible to bureau members and to you alone. The bureau members are only allowed to use it to assess credit. A written Code of Conduct regulates the access means. This has strict privacy regulations. These rules should be followed by its members.

Credit Report Data Providers

Just two bureaus have authority to offer credit reporting services. They also are permitted to run credit checks for their members. As gazetted by the Singaporean Money Authority (MAS). These are the Credit Bureau (Singapore) and DP Credit Bureau Ltd.

Associates of either of these credit bureaus can deliver a credit report. These include banks, moneylenders, and other financial institutions. Other are utility and credit card companies. The associates may also access data such as bankruptcy proceedings. They get from the public domain records.

Factors That Affect Your Credit Score

You score is computed following based on several factors. These include:

Recent applicationsMoneylenders that see several recent personal loan requests on your record. They may consider you a bigger risk. This is since you seem financially desperate. That is why you should limit the new credit you request submit.

Default – Overdue payments and late payments on your personal loans are noted here. These together with utility bills lower your score.

Usage – This refers to the amount of credit that a borrower has used. It can also be what they owe on their credit account.

Inquiries – All the new loan applications you make translate to a credit inquiry. These are then posted on your credit report. Having too many credit inquiries within a short time does affect your score.

Credit available – They get the difference between total credit limit and credit used. This will give the available credit. Having a higher availability can be good for your score.

Credit history – By having a longer credit history, shows you are more stable. This means as a borrower you are considered less risky. When your history is short, not enough information is provided. This makes it hard for lenders to assess your credit-worthiness. It is for this reason you should start building your credit early. When possible you could start after you have reached the age of 18. The report also shows the repayment conduct for a period of 12 months.

Importance Of Credit Reports

Your credit report gives a breakdown of your repayment ability. This is based on the historical data on your report. This enables moneylenders and banks evaluate your ability to repay your loan. This is should they decide to grant you credit.

Realize that it is for your own benefit. More so when you maintain a good repayment record. Overdue/non-payments and other credit defaulting are on record. This can stay on your report for many years after. This will lower your score. They might also make you not access borrowing chanced in future.

When you monitor your report, you can prevent fraudulent acts against you. This is where an individual uses your private details and rating to get credit. Although other aspects play into the getting of credit from a lender. You may greatly improve chances of getting credit. This you can do by having maintained a great repayment record. This will translate to a high credit score.

A credit score is often posted at the end of your report. This is usually indicated using a four-digit number. This is issued based on the information included in your credit report. This number can range from 1000 to 2000. Where 2000 shows the least tendency to default. The ranges in between are then set from AA to HH. Here AA shows a borrower is the least risk to lend to.

It is advisable that you examine your report at the least monthly. This way you will know the status of your credit. You can obtain this information from both bureaus. Ensure you compare the records to make sure they are correct. Your record should show the actual state of the credit history. It can sometimes happen that erroneous entries are posted. This is not uncommon for these reports. This is why you need to ensure to keep track of your report. This will ensure the accuracy of your records and rating.

How To Get Your Credit Report

You could get your credit report from the Singaporean credit bureau. Other sources are CASE offices, CrimsonLogic Services and any Sing Post branch. You will need to pay a transaction fee for the service. You can subscribe to the premium service known as “My Credit Monitor”.

This service evaluates your record on every day. It will also send you an email when there are changes to the data. By using this service, it is easy to detect changes. It will alert you to possible identity theft. Thus you can take action to prevent any major damage.

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