Credit reports are records that offer a summary of an individual’s credit acquisition, usage and repayment history. Credit reports issued to members of the bureau who enquire regarding the credit status of an individual and are produced by credit bureaus. An individual may also approach the bureau to get their own credit report.
Suppliers of credit report information
In Singapore, there are only two credit bureaus which possess the power to run credit checks and offer members credit reporting services.
Information filed in an individual’s credit report is delivered by affiliates of any credit bureau, including utility firms, banks, charge card companies, and financial institutions.
Part of Credit Bureaus in Singapore
All these are credit advice repositories that provide information that could empower members to measure the chance of lending to borrowers who approach them. Financial institutions can protect their profit margins by making loaning options that are better. However, the bureau denies nor takes credit applications; banks use their own policies to take or refute credit and the information offered.
Your credit info/report is accessible for you and members of the credit bureau. The latter are only allowed to utilize it for credit assessment purposes. The way of access is regulated by a written Code of Conduct, where there are stringent privacy regulations that must certainly be adhered to by members of the bureau.
Significance of your credit report
As said previously, a credit file offers a breakdown of your credit compensation ability based on historical data. This, therefore, empowers banks along with other lenders to evaluate your capability to make repayments when they should allow financing to you.
At the conclusion of the report, there exists a four-digit number called a credit score that is given on the basis of the info on the credit report. In between, ranges are divided from AA HH where AA is the least speculative lending alternative.
As you can observe, it’s in your best interest to truly have a good credit repayment history. Non- payments, late payments along with other defaulting are recorded for many years after in your credit report. Your credit score is lowered by them and might force you to miss out on possible borrowing opportunities in the future.
You are guided to analyze your credit report at least monthly so that you know your credit status. This information should be gotten from both credit bureaus and compared to ensure they represent the actual state of your credit history. It’s not uncommon for erroneous entries to be posted to your credit file, which will be the reason why you should make certain that you keep at the top of your credit report.
You may also protect yourself from fraud – where someone uses your private details and credit score to ensure credit by tracking your credit file. While other factors play into the acquisition of credit you can greatly enhance your possibility by having thus high credit score is recorded by an impeccable repayment.
What impacts your credit rating?
You credit score is figured based on quite a few factors:
Recent applications may judge one to be financially desperate hence a larger credit risk. That is the reason why it is advisable to limit how much new credit you put in your application for.
Delinquency – late payments and delinquent payments for loans and even utility bills lessen your own credit score.
Credit history – the longer your credit history, less risky and the more secure you’re deemed to be. For those who have a history that is short, there isn’t enough information to make a good evaluation of your credit-worthiness. This really is why you should start to construct your credit as soon as you possibly can once you turn 18. Repayment conduct is exhibited for the last 12 months.
Credit accessible – this is the difference between the entire credit limit and also the credit used up. Higher availability is good on your credit.
Enquiries – all new applications result in credit enquiry, and these will be posted on your own report. Too many enquiries in a short span aren’t great for your score.
You can request your report from instance offices the credit bureau, any Sing Post branch or CrimsonLogic Service Bureaus. You may also subscribe to some premium service called ‘My Credit Monitor’ which sends an email if there’s a material change to you and evaluates your report. Through this service, it is possible to detect any changes and potential identity theft and take action before major damage occurs.