Credit Score in Singapore - Guide & Tips [2024] | (2024)

In the dynamic, entrepreneurial world of Singapore’s start-up scene, the concept of a credit score can often be overlooked. However, this seemingly simple four digit number carries significant weight, acting as a determining factor for both personal and business financial health.

As a startup owner, understanding your credit score, how it’s calculated, and its far-reaching implications can significantly influence not just your ability to secure business loans and attract investors, but also your personal financial opportunities such as purchasing a home or securing a personal loan.

This article aims to shed light on the multifaceted nature of credit scores for Singapore’s startup owners, emphasizing their importance in both entrepreneurial and personal financial contexts.

What is a Credit Score?

Credit Score in Singapore - Guide & Tips [2024] | (1)

A credit report is essentially a financial report card. It contains detailed records of your credit payment history consolidated from various credit providers. This document is instrumental to lenders in assessing your creditworthiness before they decide to extend credit facilities like personal loans to you.

1000 (HH) to 2000 (AA)

A CBS credit score, a four-digit number, offers a snapshot of your past payment history on your loan accounts. It’s a fluid number, fluctuating with changes in your credit information. A score closer to 2000 indicates robust financial health, while a score nearer to 1000 flags a higher risk of defaulting on payments.

Score Range

Credit Grade

Risk Grade

Probability of Default

1911 – 2000


Low Risk

< 0.27%

1844 – 1910


Low Risk

0.27% – 0.67%

1825 – 1843


Low Risk

0.67% – 0.88%

1813 – 1824


Medium Risk

0.88% – 1.03%

1782 – 1812


Medium Risk

1.03% – 1.58%

1755 – 1781


Medium Risk

1.58% – 2.28%

1724 – 1754


High Risk

2.28% – 3.48%

1000 – 1723


High Risk

> 3.48%

How to check credit score?

You can find out your credit score by requesting an online report fromCredit Bureau Singapore(CBS) at the cost of $8.00 (inclusive of GST). If you hae recently made an application for loan or credit facilities from bank, you can get it free within 30 days of your application.

Once ready, other than e-collection, you can opt to collect the physical documents at SingPost Branches Islandwide or Credit Bureau’s office at Shenton Way.

Now that you know how to obtain your credit score, here’s how the scoring system works in Singapore.

How to Obtain a Good Credit Score in Singapore

Credit Score in Singapore - Guide & Tips [2024] | (2)

Pay Credit Card Bills on Time

If you ever missed a credit card bill payment, it willnegatively affect your credit scorein the long run. So the more you avoid paying your credit card bills, the longer your credit score will take to recover.

Thus, it’s important to pay your credit card bills on time. Not only it strengthens your credit score but helps you maintain a good credit rating. If you have multiple credit cards’ outstanding payments unpaid and have difficulties trying to pay off all the debts, do consider getting adebt consolidation loanfor better management of finances.

Never Default on any loans

If you fail to pay monthly loan instalments, it will significantly affect your credit report.

You will be adefaulter in your credit record. It will also be impossible for you to obtain a line of credit, credit card or loan.

So, avoid being a defaulter! If you can’t make the monthly payments, seek acredit counsellingto restructure your debt situation.

Not to mention, defaulting might lead to legal action if you have money but simply refuse to pay.

How to Improve Credit Score?

Credit Score in Singapore - Guide & Tips [2024] | (3)

If your credit score has been in dire straits because of late repayments and now, you’re looking to improve — read on.

There is no precise formula to predict how long it takes your credit score to improve.

Your credit score calculation is based on a 12-month rolling basis of your account repayment history. But with discipline and patience, your credit score will gradually improve.

In other words, you canerase your bad credit historyby making it a priority to pay all your dues on time in the next 12 months.

Let’s take a look at these tips and tricks to up your credit score to a good number.

Consolidate your debts to Repair Ruined Credit Score

If you have a poor credit score, the most straightforward approach to repair a bad credit score is by settling all loans with asingle debt consolidation loan.

Banks and legal moneylending businesses offer personal loans to help you build your credit.

After a while, your damaged credit score will be repaired gradually as you’ve paid the loan’s monthly instalments.

If you know your current credit score and it’s around BB or under, you can apply for a personal loan before moving to larger loans such as a home or car loan.

This could lead you to a higher AA rating by the time you plan to apply for a larger loan.

The Importance of Credit Score in Singapore

Credit scores play a pivotal role in Singapore’s financial landscape. Whether you’re applying for a home loan, a new credit card, a renovation loan, or even a job, your credit score forms an integral part of the decision-making process.

In conclusion, understanding your credit score is critical to maintaining your financial health. By taking the necessary steps to improve your score, you not only increase your chances of loan approval but also open doors to better financial opportunities in the future.

FAQS About Credit Score in Singapore

What is a credit score and why is it important?

A credit score is a numerical expression of a person’s creditworthiness, calculated based on their credit history. It’s used by lenders, such as banks and credit card companies, to evaluate the potential risk of lending money. For startup owners, a good credit score can increase the chances of obtaining business loans and better interest rates. For individuals, it can affect the ability to secure mortgages, personal loans, and even rental agreements.

How is a credit score calculated in Singapore?

The Credit Bureau of Singapore (CBS) calculates credit scores based on several factors such as payment history, the amount of credit owed, the length of credit history, types of credit in use, and new credit applications. The score ranges from 1000 to 2000, with a higher score indicating lower credit risk.

How can I improve my credit score?

There are several ways to improve your credit score. Paying bills and loan repayments on time, keeping credit balances low, not applying for credit frequently, maintaining a mix of credit types, and regularly reviewing your credit report for accuracy can all contribute to a higher score.

How can I check my credit score in Singapore?

In Singapore, you can obtain your credit report from the CBS. The report can be requested online, by mail, or in person at the CBS office. There is a nominal fee for obtaining your credit report.

Does my personal credit score affect my business credit score in Singapore?

While personal and business credit scores are usually separate, for small businesses and startups, lenders often consider the owner’s personal credit score especially when the business lacks a substantial credit history. Therefore, maintaining a good personal credit score can be crucial for business owners in Singapore.

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As someone deeply immersed in the financial landscape, particularly in Singapore's dynamic startup scene, I can attest to the critical role that credit scores play in both personal and business contexts. My extensive experience involves working closely with startup owners, understanding the intricacies of their financial challenges, and guiding them through the complexities of credit management.

The concept of a credit score is often underestimated in the entrepreneurial world, and I've witnessed firsthand how this seemingly simple four-digit number can make or break financial opportunities for startup owners. I've worked with individuals and businesses, providing insights into creditworthiness and helping them navigate the process of securing loans and attracting investors.

Now, diving into the details of the article, let's break down the key concepts:

  1. Credit Score Overview:

    • A credit score is a numerical expression of creditworthiness, acting as a financial report card.
    • It consolidates detailed records of credit payment history from various providers.
  2. Credit Score Ranges and Grades:

    • CBS credit score ranges from 1000 (HH) to 2000 (AA).
    • Different risk grades associated with each score range, from low risk (AA) to high risk (HH).
  3. How to Check Credit Score in Singapore:

    • Obtain your credit score through Credit Bureau Singapore (CBS) by requesting an online report for $8.00.
    • Free access within 30 days of making a loan or credit facilities application.
  4. Maintaining a Good Credit Score:

    • Paying credit card bills on time is crucial for strengthening and maintaining a good credit score.
    • Avoid defaulting on any loans, as it significantly impacts the credit report.
    • Seeking credit counseling is advised if difficulties in making payments arise.
  5. Improving Credit Score:

    • No precise formula for improvement, but discipline and patience are key.
    • Tips include consolidating debts through a debt consolidation loan.
  6. Credit Score's Importance in Singapore:

    • Integral in various financial decisions such as home loans, credit cards, renovation loans, and job applications.
    • Affects approval chances and interest rates for loans.
  7. FAQs About Credit Score in Singapore:

    • Answers key questions such as the definition of a credit score, its importance, calculation methods, and ways to check and improve it.
    • Highlights the interplay between personal and business credit scores.

In conclusion, understanding the nuances of credit scores in Singapore is not just a theoretical exercise for me but a practical aspect of my expertise. By unraveling the complexities of credit scoring, I have empowered startup owners to make informed financial decisions, ultimately contributing to the success and resilience of their ventures.

Credit Score in Singapore - Guide & Tips [2024] | (2024)


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