What You Need to Know About Credit Scores
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In 2021 in Singapore, 24% of employed adults had unsecured debt. This type of debt can quickly evolve into an uncomfortable situation, which is why one should navigate the world of finances carefully and with patience.
Unfortunately, many people haven’t managed to navigate this complex field and are lost and confused in the process. And the less careful they are, the less financial freedom they could enjoy.
To help you get a grip on your finances, below is everything you need to know about credit scores and how a licensed moneylender in Singapore can help you grow.
A credit score shows whether a person is eligible for a loan based on their credit history. In other words, it shows whether someone can pay off their debts in time.
A bad credit score can prevent you from taking a loan, but it can also influence you in other ways – by increasing your interest rates and putting a cap on the amount you can lend.
A credit score in Singapore ranges from 1000 to 2000, and you can fall into one of the eight categories (HH, GG, FF, EE, DD, CC, BB, and AA). People in the HH category have the lowest score (1000) and are the least likely to repay their debts in time. People in the AA category boast a score of 2000 and are deemed most trustworthy.
In Singapore, the credit score is based on all the information collected by the CBS (Credit Bureau Singapore). This institution provides data relevant to financial institutions that determine whether and how much you can take as a loan.
The credit score is not fixed; in fact, it is renewed every 12 months. In the meantime, everybody can work on their finances and increase their score.
When the organizations mentioned above calculate the credit score, they consider multiple factors. You should know these factors to control your credit score standing as much as possible.
Below are some that can negatively influence your score:
Don’t let a bad credit score affect your future. Contact Capital Funds Investments today. We provide licensed moneylending services in Singapore. Our company offers various loan services – renovation, tailor-made, payday, foreigner, and debt consolidation loans.
Our team can help you pay off the debt, boost your score, and take a burden off your back. Reach us over an online form or call us at +(65) 6281 7736 for immediate assistance.