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How Credit Scores Are Calculated - #1 Loan Directory in Singapore | Loan Singapore

How Credit Scores Are Calculated

A lot of people in Singapore overlook the significance of the credit score and simply don’t think about it at all. The individual credit record is in fact quite important since it’s used to review whether you qualify for a loan; therefore it is a significant source of information.

Particularly during times when you want to access some quick cash, for a personal loan or a mortgage loan. Although you may possibly assume that you have not done anything to jeopardize the credit score, but little things like late repayments and also forgetting to repay the credit card debts may actually have an effect on your ability to get loans.

Credit reports in Singapore are kept by the Singaporean Credit Bureau (CBS). The credit Bureau maintains full-industry uploads from all key financial institutions and retail banks in the country. CBS keeps a collection of information related to credit between the involved members and then presents a full risk report of potential borrowers to their credit providers.

With this information, credit providers are able to establish the chances of a customer defaulting, therefore, improving their risk evaluation capabilities.

What Story Your Credit Score Says About You

A score is assigned to you and it comprises of a 4-digit number which is depending on your payment history from loan accounts you hold. This score ranges from 1000-2000, whereby individuals who have a 1000 score are more likely to default on their payment. While those with scores of 2000 have the lowest possibility of getting a delinquency standing. A person’s score is one part used during the process of loan application.

Most moneylenders also review your worthiness to get loans using other additional factors, like your annual earnings, litigation/bankruptcy information, the length of time you’ve been employed, and all the accessible number of loan facilities. Using the score, a risk score is then assigned to you. The best credit grade possible is AA. While grades of BB with CC indicate that you may have several delinquencies in your payments, and D grades and below are possibly caused by defaulting.

Find Out Your Loan Choices With Moneylenders

When you wish to obtain a credit history, you could do so for a fee of $6.42. However, when you read through the credit details and discover that you don’t fall in any of the above-mentioned grades. There are other gradings known as the “Non-graded Risk Grades” which are also important for you to know.

Non-graded Risk Grades


In public record mark (Given whether you trade or not). It means there may be in the past and current writ summons or bankruptcy evidence filed not in favour of you


HZ risk score is given when there is outstanding debt balances >=$300. You may also hold accounts marked with one of these grades: D: 90 and above days past due date; F: closed account with outstanding balances; H: involuntary account closures with balance /surrendering of security having an existing balance; R: closed and restructured loans; S: closed, with a negotiated settlement before the charge off; W: closed for non-payment recorded by Member


An inquiry records without existing Public Records and Trades. It means only personal-enquiries to no enquiries have been made from banks since no credit records exist.


Only dormant operation “Other”, Bridging Loans or a Margin Trading accounts exists. It means either the trade accounts have been closed or only a bridging loan and margin trading accounts. Or you have accounts marked ‘Others’ by the lender.


Not enough Credit Activity. It means ‘very limited’ data is available such as your Credit Applications as well as Accounts Status records such, or the score can’t be derived.

Information From Singapore’s Credit Bureau

Given that you are rather young and have not applied for loans or credit card, you may find yourself getting a CX score. This is because there isn’t much credit activity information regarding you. It for this reason that it’s important you learn ways you can “dress up” the credit rating ahead of sending your loan requests.

Factors Influencing Your Credit Grade

Your credit grade can be affected by several factors which include:

1. Pattern of Utilization

The utilization pattern is the credit amount used or even owed on an individuals account.

2. Recent Credit Taken

When you have recently booked loan facilities within short periods of time, you may come across as though you maybe over-extending yourself to potential moneylenders. It is for this reason advisable that you do not take out many credit lines within short periods of time.

3. Delinquency Data on your Loan Account

There being records of late payments on your credit or loan will more likely decrease your credit grade.

4. Credit History of Your Loan Account

Individuals who have long and well-established credit record are considered to be more reliable borrowers compared to those with no or a limited credit history. It is for this reason you are advised as a minimum to have a single credit card. With which you hold a long credit history and maintain prompt payments on. The score is calculated for a period equal to a year of your account repayment activities. This will also include defaulted and closed accounts.

5. Available Credit Accounts

This is the several credit accounts available to you. This includes both active and open accounts.

6. Loan Enquiry Activity

It shows the how many current loan application enquiries were created in your existing credit account. Every time a moneylender or a bank pulls out your credit history as a response to an application for a loan, they place an enquiry on your credit file. When you have several requests in your loan file, it shows that as a borrower you are attempting very firmly to borrow. This, as a result, will affect the likelihood of your application being successful.

Quick guidelines for Improving your Credit Grade

  • Constantly pay back your credit card debts and loans on time
  • By no means do not fail to pay your credit lines and loans
  • Avoid sending out a lot of credit applications or loan enquiries at once
  • When you currently don’t have a credit account, get one and then build your credit standing slowly by making prompt payments.