Credit Score Singapore: What Is It & How to Improve [2023]


Understanding Credit Scores in Singapore: How it Affects You & Tips to Improve It

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Are you struggling to manage your finances in Singapore? Do you feel overwhelmed by the number of credit cards and loans out there?

Having a strong understanding of credit scores is essential to taking control of your personal finances.

Your credit score can make all the difference when trying to qualify for a loan or line of credit, which is why it’s important to know how credit scores work in Singapore.

This article will explore everything you need to know about credit scores, from what factors affect them, how to improve them, and which services you can use to monitor your score.

What is a credit score?

A credit score is a numerical representation of an individual’s overall creditworthiness.

It’s essentially a ranking system used by lenders to determine whether or not you’re eligible for financing and how much interest you may be charged.

In Singapore, credit scores are calculated using the Credit Bureau Singapore’s comprehensive database of an individual’s personal information, such as loan repayment history and bank account activities.

Basically, the higher your score, the better your chances of being accepted for loans and other financial products.

Why do credit scores matter?

Credit scores are important in Singapore because they indicate a person’s financial trustworthiness and ability to meet their debt obligations.

Lenders use these ratings to decide whether or not someone is eligible for credit in the first place.

High credit scores can make it easier for consumers to qualify for loans and mortgages with more favourable terms, while low scores mean they have to pay high-interest rates, or worst, you may be turned down for mortgages.

Additionally, having a good credit score can help you save money on insurance policies and other types of debt.

What is a good credit score in Singapore?

In Singapore, a good credit score typically ranges between 1,844 to 2,000 on the Credit Bureau of Singapore (CBS).

This scale is between 1,000 to 2,000 and measures an individual’s risk of defaulting on debt obligations.

A score of 1,844 or higher signals that you’re unlikely to miss payments and indicates that you’re a responsible borrower.

Scores lower than 1,844 indicate a more significant risk and may impact your ability to access credit from lenders in the future.

Here’s a table by CBS to measure your probability of defaulting on a loan.

credit score table cbs

How is my credit score determined? What causes a bad credit score?

Your credit score in Singapore is determined primarily based on your payment history, the amount of credit you use compared to the total amount of credit available to you (known as your “credit utilisation ratio”), and your length of credit history.

Other factors include the types of accounts that are opened and closed, how often recent enquiries have been made into your credit report, and how recently any derogatory information like missed payments or defaults has appeared on your reports.

To maintain a healthy credit score, try to pay bills on time, lower monthly total debt, and limit enquiries into your file.

We’ll cover more on this later.

How do I check my credit score in Singapore?

In Singapore, the Credit Bureau Singapore (CBS) provides individuals with their credit score report.

You’ll need to create an account with CBS (using your Singpass), any SingPost branch, or the Credit Bureau office to access your credit score report and see your current financial standing.

Once registered and logged in, you’ll need to purchase a copy of your credit score report for $6.42, including GST.

This credit score will provide information about any loans or debts you currently have, your payment history for all accounts, as well as other personal details.

The report also summarises how many times you have used each line of credit.

Additionally, if a loan or line of credit has been closed within the last six months, it will be included in the report as well.

Here’s a sample credit score report of mine from when I applied for a Citibank credit card back in 2018:

sample credit score report

How do I get a free Credit Bureau report?

If you’re not keen on paying, the only other way to get a free credit score report is to apply for a credit card or a loan facility for CBS’ partners (most are).

When you receive the notification of your loan application from your provider, you can head to CBS’ website to download your credit score report for free, as long as it’s within 30 calendar days.

Despite having the same credit score, some banks reject applicants while others approve them.

The reasons why one bank may reject an applicant with a particular credit score while another bank may approve the same applicant varies depending on a number of factors.

These factors include the type of loan requested, an individual’s repayment history, current debt payments, and more.

Creditors use various internal regulations and policies to evaluate applicants to determine best who presents a level of risk to them that they are willing to accept.

Additionally, some banks have different requirements for applicants based on their experience with customer repayments in the past and other exposures that can influence their ability or desire to extend financing.

Ultimately, each financial institution is responsible for deciding which applicants meet their approval or rejection criteria, even if they have similar credit scores.

How to improve my credit score in Singapore?

Here are 7 ways to improve your credit score in Singapore:

1. Always repay loans on time

When it comes to improving your credit score in Singapore, one of the most important things you can do is always to repay all types of loan payments on time.

Making timely debt payments shows credit agencies that you are financially responsible and accountable.

This helps build trust and a good payment history, which in turn will boost your credit rating.

Making late payments on a regular basis will negatively impact your credit score, so it’s important always to pay off your debts as soon as possible.

When taking out loans or other forms of credit, consider how you can pay them back in the future.

Creating a budget is also a great way to ensure you never miss any payments by ensuring that money is kept aside specifically for loan repayment.

Setting up automatic payments can also help you stay up-to-date with all your debts, as well as enabling alerts when repayments are due.

You can improve your credit score in Singapore over time by being proactive with consistently making timely debt payments.

2. Do not make multiple loan inquiries at the same time

One of the most important steps to improve your credit score in Singapore is avoiding making multiple loan inquiries.

Applying for too many loans at the same time can result in hard enquiries, which are registered on your credit report and could lower your score, making it harder to get the best interest rate.

Before applying for a loan, it is important to make sure that you have thoroughly researched the lender and their terms and conditions.

Choose a credible lender and evaluate what type of loan will give you the best repayment and interest options.

Also, try to limit your number of applications so that any hard enquiries made don’t show up on your credit report simultaneously.

If you have already applied for several loans, consider consolidating them into one loan with better terms. This way, it won’t look like multiple inquiry attempts from different lenders simultaneously.

If you find yourself facing too many hard enquiries due to multiple applications over a short period, contact a credit counselling agency or debt management organisation like Credit Counselling Singapore who can help create an actionable plan for improving your credit score.

With sufficient knowledge about how credit scoring works and proper planning, getting an improved credit score is possible!

3. Reduce the number of credit facilities you have open

One of the best ways to improve your credit score in Singapore is to reduce the number of credit facilities you have open.

It’s important to remember that a large portion of your credit score is based on how much debt you owe and how many different forms of credit you are using.

Having too many credit cards or loan accounts open at once can look irresponsible to lenders and negatively impact your score.

Closing some of these accounts will help you focus on paying off the ones still open and give you fewer opportunities for defaulting on payments.

You should also consider freezing any unused accounts so that new card applications or loans with other lenders don’t get processed until the account has been unfrozen again.

This will help keep your overall debt levels lower and prevent you from amassing more interest-accruing debt than what’s necessary.

Finally, check all existing accounts for extra charges that may add up without your knowledge, such as late payment fees or service charges on dormant accounts.

Going through each account detail and taking steps to either pay off or cancel them in full can also improve your credit score.

4. Never default on loans

Making regular payments on all loans and other credit obligations is one of the best ways to ensure your credit score stays high.

Defaulting on any loan will significantly negatively impact your credit rating, and can also lead to legal issues depending on the situation.

It is, therefore, essential to always make sure that you pay off all loans and interest costs as they come due.

Additionally, making extra payments when you can help demonstrate that you are capable of managing debt responsibly, by keeping your total debts in check.

Paying more than the minimum payment required will also reduce the time needed to pay off the debt, freeing up your funds for more important investments.

Finally, if you ever find yourself struggling with repayments, don’t hesitate to contact your lender or creditors immediately.

Most lenders understand it is better to work with their customers than default on the loan commitments; however, some may refuse to collaborate with those having difficulty paying their debts resulting in the aforementioned negative repercussions.

5. Repay short-term loans to repair your credit

Repaying short-term loans is one of the fastest and most effective ways to repair your credit score in Singapore.

Short-term loans are unsecured credit that you receive from a financial institution, such as a payday loan or microcredit loan.

You can significantly improve your credit rating by repaying these loans on time and in full.

Even if it’s overdue, pay off short-term loans first to reduce the number of creditors you have.

Finally, keep track of all short-term loan activity within your credit report to measure progress over time.

Track every payment made and any changes in interest rates or other fees associated with the loans.

This will help monitor how much of an impact paying off short-term loans can have on improving your credit score in Singapore!

6. Keep your credit cards from being maxed out constantly

Maxing out your credit cards can hurt your credit score in Singapore.

It’s essential to avoid running up large balances that you can’t quickly pay off. Make sure to pay off any outstanding balances every month and try to use below 30% of the total limit.

Additionally, it’s also essential to keep track of limits across all of your cards. Many will lower your available balance if they perceive you as too reliant on debt.

Hence, having multiple cards with varying amounts can help maintain a more healthy debt-to-credit ratio overall which helps ensure higher returns when lenders look at activity reported about you in the future.

Being financially responsible and managing debt correctly is essential for maintaining a good credit score in Singapore.

Keeping your cards from being maxed out constantly is an integral part of this as well – regularly re-evaluate how much money you’re spending and make adjustments accordingly.

By staying mindful of what you spend, you can ensure that you will avoid overspending and damaging your credit profile too much.

And, of course, just because you have many credit cards doesn’t mean you should spend more than you can afford. Lots of self-control is needed here.

7. Build a credit history

Building a credit history is essential in improving your credit score.

It is important to show lenders that you can be trusted with repayment and demonstrate that you have a good track record of paying off debt on time.

Building a solid and consistent credit history takes time, but it is worth the effort as having good records can significantly boost your overall score over time.

Taking advantage of all the options available to you, such as obtaining secured cards, shopping around for loans with better rates, and tracking any changes to make sure all entries on your reports are correct, can help increase your score faster – ultimately helping you get back on track financially.

Is there anything in my credit score that cannot be changed?

Your credit report contains all the information about your credit history, from your applications for credit to any past or current defaults.

While some items can be remedied relatively quickly, such as disputing errors in reporting or removing accounts once they have been paid off, some things can remain on your record indefinitely.

For example, bankruptcy and debt settlement agreements cannot be erased from your credit report and will stay on it for some time.

Additionally, bankruptcies will remain on the report for 5 years after filing. Also, certain defaults may remain on the report for up to 3 years even if they have been successfully repaid and closed.

Overall, it is crucial to understand that while not everything in your credit report can be remedied quickly or easily, many issues can still be resolved through timely payments and establishing good credit habits.

This is particularly true if you create a plan and stay consistent with implementing it over time.

What is the average time it takes to repair my credit score?

The amount of time it takes to repair a credit score in Singapore will vary depending on the severity of the negative impact.

Generally, it can take up to 6 months for an individual’s credit score to start seeing improvement, although this may be shorter or longer depending on the situation.

The primary factor that affects how fast your credit score is repaired is how responsible and diligent you are in paying your debts.

If you can pay all your bills on time and practice good debt management habits, you should be able to start seeing improvements in no time.

Additionally, reducing your credit utilisation rate and increasing the length of your credit payment history will help boost your overall score.

Finally, patience and periodic monitoring of your progress is key when trying to repair one’s credit score; many individuals find solace in regularly checking their scores and making corrections where needed until they see an improvement in their financial health.


In conclusion, your credit score is an important indicator of your financial health and should not be taken lightly.

Knowing your current credit score can help you get access to better loan deals and make smarter money decisions in the future.

Understanding how your credit score works and staying on top of it will provide you with many financial benefits.

By staying accountable and keeping track of what may affect your credit score, you can learn to use this tool to your advantage and make more informed decisions towards a brighter financial future!

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Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Dollar Bureau and its affiliated parties is not meant to be construed as financial advice. Dollar Bureau shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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