Know your credit history with Credit Bureau Singapore
Did you know that you can check your own credit history for S$5 using Credit Bureau Singapore?
What is a Credit Bureau
Some of you might be wondering what a credit bureau is. The Credit Bureau Singapore is where financial institutions upload and also check on your history with regards to obtaining credit i.e. mortgage loans, car loans, credit card and other unsecured credit applications.
CBS explains:
Every month, payment performance data on approximately 3.6 million accounts is uploaded by the Banking and Finance industry to Credit Bureau Singapore (CBS).
Data relating to your loan payment performance is collated on your credit file and may be used by Banks and Finance companies as part of the assessment process for any new loans you may apply for, or for a review of your existing loans.
Your Credit Bureau file is an indication of your financial health. This is very important to the lenders as they assess the risk involved in granting credit.
You should therefore know what’s on your credit file and periodically check to see what new data has been uploaded.
Thus, CBS acts as a clearing house for information related to your credit history. It tracks if you are prompt or late in making payments on loans, credit card and related transactions. If you’re persistently late in making payments to banks and finance companies, that information would be available to potential lenders of monies to you.
Potential lenders would use that information as part of their decision making on your credit worthiness and risk of granting you credit. They may loan you smaller amounts or decline if their assessment is that your credit risk is too high relative to their own risk tolerance.
What Does a Credit Report Look Like?
I was curious to my own credit history although from my own experience I think I should be all right as I’ve never been refused credit card applications and I’ve managed to clear off my bank loan in full. Thus, I logged in using my Singpass and paid the $5 using my credit card to see what exactly my credit history looks like.
This is what a typical credit report looks like and the CBS teaches you how to read your own credit file.
It’s useful to have a look at your credit history especially if you are about to take up a major loan for car or house. This will allow you see if you have a good or not-so-good credit history.
Have you ever checked your own credit report before?
Tell Panzer in the comments section.
Be well and prosper.
Yeah, I still remember the 1st time I went to CBS to ‘purchase’ my credit report. The 1st reaction I got was, “What the heck? Why so blank?”. That was after my graduation.
I wonder if they provide the service online now. It would be great if folks can just check their credit rating online without having to go to SGX (not sure if it’s still there).
Hi Panzer,
Nope. I bought my house 5 years ago and no intention for a car, so I don’t think I need one. I always pay all my bills on time for my credit card(s). Haha need to pay $5 to get a report ? Maybe now recession is here they should drop it to $2 or something ?
Musicwhiz
Hi Musicwhiz
Those who are financially more prudent won’t need to spend the $5 for their credit report. But some people wonder why they get rejected for car loans/credit card should consider understanding their own credit report.
Be well and prosper!
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Hi Bernard
It is available online now. You can pay via credit card and get your credit report in a few mouseclicks.
For me, it is useful to take a look at my credit history since I still have a car loan but my home loan has been paid up.
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I don’t think a credit report is useful in Singapore. What is important is the score, not the report.
If I go by the US standard, I think my credit score will be rather low:
- very short CC life (only 2 years; had to cancel a much older card)
- low credit limit (only 1 CC)
- very few transactions
- no balance
- no records of other loans (very bad for your score, since no payment history)
The only plus is the card balance to credit limit ratio.
Hi Panzer. Came across your blog while searching for the best interest rates for banks.
I am a 24 year old, final year university student, and I found it interesting that you mention the importance of Consumer Credit Report.
Ramit Sethi, Stanford graduate and co-founder of pbWiki mentions in his book “I Will Teach You To Be Rich” about the importance of having a good credit score, and how bankers will eventually evaluate our credit score for our big-ticket purchases in the future.
In Ramit’s own words,
“A high credit score can save you hundereds of thousands of dollars over your lifetime- and thats just on a house mortgage.”
While the book is targetted at Americans aged twentysomething and thirtysomething, I see its relevance to Singaporean twentysomethings, and am glad that you explained more about Singapore’s Consumer Credit Report.
I definitely taking a look at the book “I Will Teach You To Be Rich”
His web is : http://www.iwillteachyoutoberich.com/book/
Cheers to Financial Freedom
Koey
Hi Koey
Thanks for sharing Ramit Sethi’s blog. I’ve added him to my Google Reader.
Be well and prosper.
hi there, I am a foreigner working in singapore on a P1 employment pass. Can you tell me if I would have a record with the credit system also is there just one credit system here or others like experian and equifax ?
I have heard that if I apply for credit and get rejected then it wouldnt affect my credit score in a negative way but on forums I have heard that the opposite is true, could someone clarify what the truth is ?
In Singapore, all the financial institutions would do a credit check using the Credit Bureau of Singapore. Hence, once you start building up your credit history in SIngapore, financial institutions are able to check on your credit worthiness even if they’ve never done business with you before.
I’m not sure if Credit Bureau of Singapore has interfaces with other countries Credit Bureaus. You would have to check with them on that.
Be well and prosper.
Recently one of my relatives has been offered a job with a bank. The letter of offer has not been signed yet, likely to be within these few days. My question is : Will the employer (i.e. the bank)conduct a credit check with the Credit Bureau of Singapore on the credit history of my relative, before deciding whether to proceed with issuing the Letter of Appointment?
Thanks,
Angela
Hi Nicole
I am not sure if banks would do a credit check before hiring employees. It really depends on their human resources policy. Most organisations would unlikely do that but may ask you to declare your indebtedness other than mortgage loan or car loan e.g. civil service and statutory boards.
You would probably need to check with the bank to know the answer.
Be well and prosper.