The Monetary Authority of Singapore has authorized two credit bureaus to issue credit scores and reports – Credit Bureau of Singapore and DP Credit Bureau. These bureaus track your financial history and compile your credit report containing details about the loans that you have taken and your repayment record. Your 4-digit credit score or credit report acts as an indicator for lenders, banks and credit providers of how likely you are to repay the credit or loan taken. The report acts like your resume that speaks about your financial credibility.
Whether you want to get a loan or wish to apply for a new credit card, your credit score matters significantly. You must have a score of at least 1825 for smooth loan approval. But if your credit score is lower than this, then don’t fret. Here are six remedy tips for your credit score.
1. Use Credit Cards Wisely
A lot of people might have advised you to watch your spending habits and use your credit card only when necessary. We, too, would encourage you to do the same. But we are asking you to limit your transactions to avoid going into debt and further increase your liabilities. It is easy and natural to get carried away while shopping when you have a credit card. Although the repayment date is a few weeks away, you still have to repay the amount you spend, that too with an interest rate. Accumulation of unpaid amount will only lower your credit score. In case, you fail to repay the credit amount, it will have a negative impact on your credit report. Therefore, cut down on your expenses, and use your credit card only when you have to shop for necessary things.
2. Pay Bills on Time
The way you pay your bills has a direct relation with your credit report and scores. By bills, we mean credit card and utility bills. Even one missed installment can affect your credit report. And of course, the more recent the missed payment, the greater that impact. It is also possible for you to face a heavy financial crunch when you miss more than one bill cycle. Clearing the entire amount can become difficult if you miss your installments. The more you miss your installments, the worse your credit score becomes. Thus, make it a point to pay the bills before the due date. In case, you have any outstanding bill currently, clear it at the earliest and start fixing your credit score immediately.
3. Never Default on Loans
In case, you think that defaulting on your loans and credit card payments will free you from the debts, then you are overlooking the relation defaulting has with credit scores. In case, you default on a loan, it will appear on your credit report indefinitely. And unlike missing an installment, defaulting on your loan or credit card payment will have a much serious impact on your credit report. Defaulting on your loans can make it impossible for you to get a loan or a credit card for the rest of your life. In case, you cannot make the repayment, always seek credit
4. Limit Loan Application Inquiries
Different banks and lenders have different requirements and terms. While most banks and lenders don’t pay much attention to the number of
Keep your enquiries to the minimum and ask all the possible queries you have in one go. And if your enquiries are only about what different banks and lenders are offering, you can consider comparing the options online. We recommend SGML for online moneylender comparison.
5. Limit Open Credit Facilities
When you need cash, you must opt for limited sources. Limit your credit facilities and opt for the least number of loans, credit cards, and other lines of credits. In general, avoid having more than four to five credit facilities. You may forget the amount payables and bill cycles of different facilities if you have more than five credits open. And consequently, you may even forget paying your installments in time.
Try to pay off as many open credits as you can at the earliest. And when you wish to apply for a new credit facility, you must clear some of the existing ones. Likewise, if you don’t use a credit card, consider closing it off before you apply for your next loan or credit card. The same applies to inactive bank accounts. The fewer the number of open credit facilities you have, the clearer your credit report will be.
6. Check Your Credit Score Regularly
Although this won’t directly help you in fixing your credit score, it’s better to stay updated. Checking your credit score regularly will help you keep a check on what is affecting your report, both positively and negatively. As soon as you identify a gap in your credit report, or find something that is lowering your score, you can immediately work on it and fix the score accordingly. At present, any Singaporean can obtain a credit report from the Credit Bureau of Singapore (CBS) for a fee of S$6.
Although some of these tricks are time-consuming, it is not impossible to make your credit score better. Make sure you start working on your score well in advance so that you get your loan approval in time.
Tampines Moneylender – Accredit Pte Limited
Wish to increase your credit score? The best option is to consolidate all your debt into one bill. Just connect with Accredit Licensed ML to grab the debt consolidation loan. Accredit is not only a reliable moneylender but also a moneylender that offering loan with the lowest interest rate.
Our proficient staff will treat every client as a close friend, with the offer you the best consult. In order to serve you better, we ensure every of our staff is