What is Credit Bureau?

Are you familiar with the Credit Bureau in Singapore? A Credit Bureau is a company that will collect information of an individual’s credit history which will then be submitted to the bank or licensed moneylender where the borrower will be lending money.

In Singapore, the Credit Bureau is the principal credit consumer agency today with the most complete industry uploads in the country which originates from all the major financial companies, institutions, and retail banks. The Credit Bureau is a joint venture of “The Association of Banks in Singapore” and “Info credit Holdings Pte Ltd..”

Over the years, the Monetary Authority of Singapore’s or MAS has made a vision which is to improve the country’s risk management capabilities which are inlined with the whole embodiment of the Credit Bureau. So, how will they do this?

How Credit Bureau Works:

Singapore has made a Banking Act which allows the members of Credit Bureau such as those credit card companies to reveal the credit-related data for the greater purpose of checking and analyzing whether their existing and potential customers are worthy of a payday loan or any debt.

In short, the Credit Bureau gives a “complete risk profile” of their specific customer from a credit card provider. The complete risk profile that Credit Bureau obtains from borrowers includes a concrete number which is called the “credit score.”

A person’s credit score is assessments of the applicant which will help the lender have thorough guidance in deciding if they will let the applicant lend money from them. Through a credit score, the lender can somehow tell the likelihood of the borrower to follow repayment terms and the possibility of going into default.

With this, it is very important to protect your credit score because it can affect your loan applications in the future. If you are a couple who have kids or planning to have kids, maintaining a good credit score is a great way to have a successful education loan application someday for your children.

It is also essential for those who are planning to purchase a house through a mortgage loan. Applying for a mortgage loan is not easy, and banks are strict with credit scores for this type of loan which involves a big amount of funds.

If your credit score has in its lowest point for the past two to three months, there are still ways on how you can rejuvenate your credit history since the reports Credit Bureau makes is from your record for 12 months.

That is why you have to make sure that you can uplift your negative credit score before your 12 months ends. You may do this through correcting any mistake you made that affected your credit score such as paying your debts on time which will be seen on your “Account Status History.”

The only time that you cannot restore a good credit score anymore is when who have made late repayments for more than your 12 months period and you don’t have any means to repay your debts. In worst cases, you may be forced to file for bankruptcy. With these, you have to take the right decisions when it comes to your debts to avoid further financial problems.