We all have heard of perks Credit cards come with but they do not come for free. It requires proper maintenance of financial behavior that would determine your healthy Credit Score.
What is Credit Score
Credit Report and Credit Score are the two common terms associated with your credit history. Today, every Singaporean has a Credit Score. But how this Credit Score is calculated or what are the factors that affect your Credit Score?
Credit Bureau Singapore is the authority that takes note of your credit history and repayment of loans. Your past credit records mostly determine how much your Credit Score will become. Every nitty-gritty of your financial behavior will be analyzed. The factors CBS take into account are
- Primary personal data
- Number of Credit checks you made
- Repayment record for the last 12 months
- Any Default record
- Litigation record
- Bankruptcy record
- Closed credit account
- Outstanding balance
- Credit limit
Based on this information CBS maintains your Credit Report which contains the Credit Score, a four-digit number. It ranges in between 1000 to 2000. The better your Credit Score the better your chances of getting loans.
Why Good Credit Score Necessary in Getting Home Loan
Unlike Other loans, a Home loan can be used in many different purposes like buying new one or renovating the old one. But getting a home loan is not that easy. Irrespective of other details, your Credit Score primarily determines how much you will receive as a loan. In Singapore, any loan above S$500 will require a good Credit Score because banks will take note of this number and if you maintain a good Credit Score your chances of getting the home loan increases otherwise a bad credit score will fetch you loans below S$500 or outright rejection. Any non-payment or late payment in the past will severely affect your Credit Score and ruin the chances of any loan- be it a personal loan or home loan. To maintain healthy Credit Score, it is advised to repay the loan on time, not making multiple loan applications in quick succession and, not default on a loan.
How To Check Credit Score Online
Credit Score is not a constant number. You need to check it regularly because it changes with time and your financial transactions regarding past loans. Now in Singapore, you can check your Credit Score with CBS by paying S$6. At the same time, you can know your Credit Score online, thanks to technological innovations. The CBS office is situated at Crimson Logic Service Bureaus. There are 62 SingPost branches. You just have to make an online application to get your four-digit Credit Score. Once you know your Credit Score, you can then check your home loan eligibility with any of the Fintech websites. There are websites that can help you with the application procedure and approval of loan also. With technology, it has become easier to get a loan approved without requiring to visit the bank. What you need to do is to maintain the financial sanctity by repaying on time.
Today, you can check your loan eligibility any time online. Technology has made this possible. You just keep up with it and carry on enjoying the bliss of finance with technology.