Few people can afford to pay for big-ticket purchases in cash. For the majority, getting a loan is usually the way to go. However, did you know that your ability to get a loan can be affected by your credit score? Show In this article, we discuss what a credit score is and how you can maintain and improve yours. This article is backed by Standard Chartered Bank’s (SCB) Head of Retail Models, Dickon Brough. A credit score is a statistic derived from a person’s credit history, using data from a range of factors, such as The score is typically a range of values; an example could be a range between 0 to 1000, where To check your credit score, you’ll have to generate a credit report from the Credit Bureau Singapore
(CBS)[¹]. You can either Price: S$6.42 (incl. GST) + S$2.00 for multiple delivery modes. Tip! A good or bad credit score varies by product and the risk appetite of the lender. This is dependent on the default rate the lender is willing to accept and/or has priced for. A person’s credit score is an integral part of the loan application process and determines Applicants with higher credit scores are typically offered better interest rates. In contrast, those with a lower credit score may not be given a loan at all and, if they are, the interest rate and terms may be more stringent.
At Standard Chartered Bank, “cut-off” or base scores are applied when making lending decisions. Customers whose credit scores are below the “cut-off” will be declined, and those above will be approved, if they meet the additional affordability and verification policy requirements. The “cut-off” is set at a level that ensures the bank only accepts customers who meet Standard Chartered Bank’s risk appetite for that specific product. Did you know? FYI: Instead, CBS only provides factual credit-related information about consumers to the lenders to facilitate their decision. FYI: Instead, CBS only provides factual credit-related information about consumers to the lenders to facilitate their decision. Available credit Recent credit Enquiry activity Utilisation pattern Account delinquency data Credit account history
Credit reports reflect your credit history for the past 12 months. This means that you are still able to improve your credit score by adopting the following practices for the next 12 months. Stay within your existing credit limits Manage your credit card payments intelligently Manage your total credit exposure as a percentage of your income avoid having many credit cards; even when not using them could create the impression that you have the potential to become indebted. Demonstrate low risk management of current credit exposure Avoid applying for multiple non-mortgage credit products within a short time period Always keep in mind to adopt favourable practices; spend within your limit and do not overstretch yourself. Another thing to note – when applying for loans, it’s important to check how your lender’s loans are priced to ensure that you’re getting attractive repayment terms. At Standard Chartered Bank, we offer competitive loan packages that keep our customers’ needs at the forefront.
● Date of earliest known credit account o If you’re part of the DMP, this row will be
flagged with a “Y”.
Your personal details and additional identification details are used for verification purposes. The addresses of your previous 3 residences under “additional addresses” are either provided by CBS or yourself.
This section displays all the credit facilities that you own and the respective repayment activity in the last 12 months. For credit card facilities, there will be a
This is a record of all enquiries made by lenders, in response to a loan application. Each record is displayed for 2 years from the date of enquiry.
This section is a record of all payment defaults on your credit facilities reported by lenders. All default records will be displayed for 3 years from the date of Negotiated Settlement or Full Settlement status. However, if a record has an Outstanding, Partial Payment or Sold Off status, it will be displayed permanently. Note: Statuses are based on the definition of each individual financial institution.
This section records any DRS activity and status. DRS is another option to declaring bankruptcy – a win-win repayment plan is drawn up and debtors are to repay their debt within 5 years.
Any bankruptcy records will be displayed in this section for 5 years from the date of discharge from bankruptcy.
This is where your credit score is displayed.
Miscellaneous comments on the report provided by any third parties.
This is a record of any outstanding balances, which are derived based on outstanding amounts that have yet to be paid under your credit facilities.
This is a record of monthly instalments for each credit facility for the previous month and the next 5 months. For more information, refer to this Credit Report Explanation[6] by CBS. What is the easiest card to get with bad credit?Petal® 1 “No Annual Fee” Visa® Credit Card. Best Overall. ... . Navy FCU nRewards® Secured Credit Card. ... . Tomo Credit Card. ... . OpenSky® Secured Visa® Credit Card. ... . Discover it® Secured Credit Card. ... . Credit One Bank® Platinum Visa® for Rebuilding Credit. ... . Bank of America® Customized Cash Rewards Secured Credit Card.. What type of credit cards will be offered to people with poor credit?Secured and unsecured credit cards
There are two types of credit card options for bad credit, secured and unsecured. A secured credit card requires a deposit of a certain amount of money into a savings account, and the credit limit is often based on a percentage of the deposited amount.
Can I get approved for a credit card with a score of 500?Yes, you can get an unsecured credit card with a 500 credit score, but you will likely end up with high fees, high interest rates, and a low credit limit. The best unsecured credit card to get with a 500 credit score is the Credit One Visa card.
Which credit card is the easiest to apply?Before You Apply for a Credit Card. The Indigo® Mastercard® (No Credit Check Needed). Journey Student Rewards from Capital One (Recommended Credit Score: 580+). Chase Freedom Student Card.. Capital One Platinum Secured Credit Card (No Credit History). Chase Sapphire Preferred® Card.. American Express® Gold Card.. |