on May 10, 2021
What is a credit score and is it that important in Singapore? How does one go about maintaining or improving it?
Understanding credit scores and knowing your credit behavior is key to being financially healthy. In developed countries like Singapore with a solid financial system in place, a good credit score can go a long way in helping individuals secure loans at good rates. In this article, we will share some insights on what makes a good credit score and how personal loans can help you improve it.
How important is having a good credit score in Singapore?
Did you know that your credit payment history is recorded and can affect your ability to take out loans? The Credit Bureau Singapore (CBS) collects and aggregates information on borrowers’ credit risk to financial institutions. Each time you apply for a loan, the financial institution will refer to your credit report to determine how big or small a loan you can apply for, and the rates at which they will lend to you.
Having a good credit score makes it easier for individuals to qualify for loans, especially when a large sum of cash is required on a rainy day. However, people struggling with a low credit score, often find themselves deprived of good financial options in times of need.