Your creditability of finance based on your credit history can majorly impact what you want to finance like housing loan, renovation loan, business loan or loans that taps onto your credit history. The reason why credit matters is that it affects the amount of loan or even the interest rate and repayment amount that’s dispensed to a borrower.
Financial institutions will check on your credit score when acquiring a loan, loan officers will vet through your credit history to give the proper advice and loan terms to a borrower.
Credit score is seldom thought about to most people, however credit matters as it affects directly the loan and interest rate and can even affect various aspects of your financial life or job. Therefore, it is paramount to keep your credit score in good shape.
Credit score is basically a number based on complex credit assessments by various institutions, this number makes credit matters greatly. It indicates the possibility of a borrower getting a loan and whether a financial institution will approve the loan application.
In Singapore, much of these credit assessment is kept in a credit report at the Credit Bureau Singapore (CBS). This shows your personal details, loans, payment history, bankruptcy records, credit limits, loan accounts and amount owing. CBS analyses these data to determine a credit score using various algorithms.
The fact that if you can’t get a mortgage or loan is likely due to your low credit score, and this is why credit matters in life. If you aren’t on time with payments, it impacts your credit score.
Even with job applications, a person’s credit history can be checked upon especially if the applicant is applying for a financial position.
How to improve your Credit Score?
It is important to keep to your payments on time, as repaying late affects your credit score greatly. You could also reduce your number of loans or credit cards you have. This reduces the risk of having your credit score affected.
To get a copy of your credit report here, so you can review it and correct it if it is wrong, simply go to the CBS website at www.creditbureau.com.sg and request a copy.
Keeping in mind that credit matters, paying your loans on time and checking up on your credit score are steps to maintaining a good credit score.
Thinking of getting a loan or to better understand the loan application approach, contact our loan officers to find out more.