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.