Singapore has two credit bureaus that issue credit scores and reports: DP Credit Bureau and Credit Bureau Singapore. Both institutions track your financial history and compile it in a report containing vital details, such as the type and number of enquiries you made to lenders, repayment track record and loan details.
If you find that the score issued to you by either credit bureaus is high, you’ll be able to enjoy a wide range of benefits. Banks and other financial institutions, for instance, will be keen on lending the money you need. You’ll also be eligible for a higher loan amount and lower interest rates. A poor credit score, on the other hand, may make securing a loan approval difficult. Even if the financial institution does approve your application, it’s likely that you may not get the interest rate or loan amount you want.
Building a good credit score, therefore, is crucial to get the appropriate funding you need. Here are a few suggestions to help you achieve your goal:
1. Pay Your Dues on Time
Payment delays can damage your credit standing. A delay beyond 30 days, for instance, will put you in the delinquent category, which will negatively affect your score over time. You can avoid this by creating due date reminders on your calendar. If you are unable to pay loan instalment on time, inform your financial institution before the due date.
2. Refrain from Borrowing from Too Many Lenders
Keeping track of several lenders can be challenging. Missing just a single payment on one lender can ruin your credit score. The sensible approach is to limit the number of lenders to make tracking easier for you.
3. Use Credit Cards Wisely
Individuals who use their credit card for shopping and other expenses have the option to pay the minimum amount due and defer the remaining payment for the succeeding months. This common strategy, however, can backfire, as they’ll likely end up accumulating a massive credit card debt and consequently paying a significant amount as interest.
Rather than use your credit card this way, look at it as an alternative mode of payment. Once you get your monthly statement, make an effort to pay off the whole amount.
4. Minimise Your Loan Application Enquiries
Making multiple application enquiries can decrease your credit score. When you reach out to several financial institutions frequently, you are creating the impression that you’re desperate for funds. Even if you intend to grab the best deal possible, the signal you’re sending out is totally different. So, limit your enquiries to help maintain your credit standing.
If you’re looking for a loan to help grow your small business, Capital Funds Investments is here to help. As a trusted business loan provider in Singapore, we offer both unsecured and secured loans to businesses. When you turn to us for your loan needs, our experts will work with you to figure out the optimal loan amount for your business. Additionally, we’ll treat you as one of our respected clients. Rest assured we won’t push you to borrow more than what you can afford.
Call us on 62817736 or send us an email at firstname.lastname@example.org.