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How to Rebuild Credit After Bad Debts

Viewed by 1,909 Smart Towkays

Credit Bureau Singapore
Mar 13, 2024
How to Rebuild Credit After Bad Debts

Disclaimer: This article is contributed by Credit Bureau Singapore. It's essential to note that valuable insights expressed in the article are about a deeper understanding of credit profile based on their thorough research and industry expertise.

What leads to bad debts?

Bad debt occurs when the debtor has defaulted on payment or is experiencing financial difficulties that makes it impossible for them to repay the money that they have borrowed or taken on credit terms. Most of the time debtors feel the daily struggle of paying for their own basic expenses using cash and find themselves relying heavily on credit terms to make ends meet.

Individuals who mismanage their finances struggle to meet their payment obligations, resulting in overdue payments and bad debts overtime. There are many reasons why someone can lead to bad debts but generally it could be due to a combination of inadequate knowledge on how to use credit facilities, financial instability, poor budgeting or bad influences that led them to make poor life choices.

Why is maintaining a good credit reputation important?

A Credit Report reflects your current financial standing of an individual’s personal credit facilities. Credit Bureau (Singapore) Pte. Ltd. (CBS) is Singapore’s most comprehensive credit bureau that provides credit reports of individuals. Through this individual credit report, lenders will be able to pre-assess the borrower’s credit health and verify his overall financial standing before approving a loan. It is a record of an individual’s credit history, and this includes detailed monthly loan repayment behaviour, information about credit accounts, outstanding balances and even publicly displayed records such as litigation case and bankruptcy status. Such powerful information is crucial and may affect one’s life, which is why having a good credit report is highly treasured.

Steps to rebuild credit reputation after a bad debt


Lastly, where can I get a copy of my credit report?

To check your credit score, you can purchase a copy of your credit report at https://www.creditbureau.com.sg/.

Last but not least, be sure to follow and like CBS’ Facebook page @creditbureausingapore for more useful content and tips to build a good credit reputation!

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