How to Understand Your Credit Report

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Credit Bureau Singapore

Apr 25, 2024

This article is contributed by Credit Bureau Singapore.

A credit report is a comprehensive record of your credit payment history compiled from different retail banks and major financial institutions. Credit Bureau Singapore (CBS) collects these credit data amongst participating members to allow credit providers to evaluate the likelihood of the consumer repaying before extending a loan out to you. Your credit reputation and credit worthiness are also dependent on your credit report.

By the end of this article, you will be able to understand what kind of information is reflected onto your credit report and learn to interpret your own credit profile and comprehend your current financial standing more effectively.

Components of a Credit Report

Summary and Personal Details

Summary

Displays a quick summary of the Credit Report by indicating how many Previous Enquiries have been made as well as how many credit facility accounts (inclusive of accounts closed within the last 3 years), Default Records and Bankruptcy Proceedings have been loaded on the consumer.

The consumer’s total credit limit (categorized under Secured, Unsecured and Exempted Credit Limit) will also be displayed.

If a consumer is enrolled in a Debt Management Programme with Credit Counselling Singapore (CCS), their credit report will show a flag marked 'Y' for 'Yes' and 'N' for 'No' otherwise."

If a consumer submits the police report lodged on identity (ID) theft activities to CBS, their credit report will show a flag marked 'Y' for 'Yes' and 'N' for 'No' otherwise."

Personal Details

Basic Personal Details and Additional Identification details are used for verification of information from the applicant.

Account Status History

The account status history section will list all your active credit facilities inclusive of closed accounts, which will remain visible for 3 years following their closure date. This information is presented on a rolling 12-month basis in the final column, from right to left, with the oldest to the most recent cycles.

The first row indicates the timeliness of monthly cycle payments, with each alphabet symbol representing a corresponding definition listed here.

The second row indicates whether there has been any Cash Advance or Balance Transfer activity on the credit account, denoted by 'Y' for 'Yes' and 'N' for 'No' otherwise.

The third row indicates if whether there has been Full Payment received onto the credit account, denoted by 'Y' for 'Yes' and 'N' for 'No' otherwise.

Previous Enquiry

Previous enquiry contains a record of all enquiries made on the individual’s credit report and this information will be retained in the credit report for 2 years from the date of enquiry. A member of CBS may access your report when

you have made a new credit application; and
periodic review; and
guarantor checks

Default Records

Default records pertain to instances where payments are not fulfilled as reported by members of CBS. Once a person's default is recorded on their credit report, the member will close their account, barring further transactions. The duration of the default record depends on the type of default recorded by the member.

Negotiated Settlement or Full Settlement records; displayed for 3 years from status date:
Outstanding, Partial Payment and Sold off records; displayed Indefinitely onto the credit report until settled.

Bankruptcy Proceedings

The Credit Bureau Singapore (CBS) exhibits bankruptcy records obtained from the Insolvency and Public Trustee's Office (IPTO). This data remains visible in the Credit Report for 5 years after the discharge from bankruptcy, in accordance with IPTO's data retention policies.

Bureau Score

The Bureau Score is a numerical expression that indicates your risk level during the point of enquiry. It is calculated from an algorithm based on information in your current available credit data and is a fluid number which may change from time to time in tandem with changes in your credit information. The Bureau Score ranges from 1000 to 2000 for risk grades AA to HH. The lower the Bureau Score, the higher the probability of default.

Aggregated Outstanding Balances and Aggregated Monthly Instalment

Outstanding Balances are typically calculated from the amounts owed on borrowers' credit cards and credit facilities, encompassing any accrued fees and interest. Reported credit card Outstanding Balances are usually derived from balances presented in customers' statements, rather than month-end balances.

Monthly Instalments will detail the specific amounts for each facility provided by the Approved Member(s) for the previous month, along with aggregated amounts for the preceding 5 months.

Importance of Having a Good Credit Health

Having a positive credit reputation can prove advantageous, particularly when you require financing for significant purchases such as a mortgage or to cover unforeseen expenses like emergency medical bills. When facing cash flow challenges, the inability to access borrowed funds when necessary can prompt individuals to make poor financial choices, potentially damaging their credit score as they persistently seek for other credit options. It is advisable to review your credit report regularly to always keep your financial health in check.

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/. Also, be sure follow and like our Facebook page @creditbureausingapore for more useful content and tips to maintain a good credit reputation!