I am struggling with bad credit. Is it the end of the world for me? Fret not! There are ways for you to improve your credit score. While having bad credit is usually a costly and stressful experience in Singapore, it does not have to be the end of your financial prospects. The situation may appear to be dire and hopeless, but bad credit is something that can be dealt with effectively. There are various things that can be done to begin the journey to improve your credit score. Credit Scores Let’s start with the basics of what a credit score is. A CBS credit score refer to the grades that consumers are given by the Credit Bureau of Singapore (CBS). These numbers are shared with financial institutions (banks, licensed money lenders, etc.) and creditors who may want to approve someone’s good credit or extend a loan. It also acts as an indicator of the likelihood that an individual makes timely repayments on loans or whether he or she goes into default. Credit scores are given on an index of 1000 – 2000 (AA – HH), with 1000 (HH) being the least ideal and 2000 (AA) being the most ideal. Creditors use credit scores to determine whether a person is credit worthy or a worthwhile credit risk. This makes it possible for creditors to find out whether there is a high possibility of the borrower making timely payments on a loan or paying off credit card bills. Third parties such as lenders often use credit scores as a way to evaluate the risk of lending someone money. Credit scores are among the options that various institutions, credit card companies and banks have for assessing the likelihood of a person being able to pay off the debts that he or she accumulates. Higher credit scores show that a person’s past behavior and current circumstances indicate an ability and willingness to pay off the loans they have been approved for. With that said, credit scores are only one of the many factors that we look at while assessing whether you are suitable
Copyright © 2020 Lending Bee Pte Ltd.
All Rights Reserved.
Co. Reg. No. 201841732D.