Ultimate Guide to Obtaining a Good Credit Score in Singapore

In the dynamic, entrepreneurial world of Singapore’s start-up scene, the concept of a credit score can often be overlooked. However,...

Singapore Business Owners


In the dynamic, entrepreneurial world of Singapore’s start-up scene, the concept of a credit score can often be overlooked. However, this seemingly simple four digit number carries significant weight, acting as a determining factor for both personal and business financial health.

As a startup owner, understanding your credit score, how it’s calculated, and its far-reaching implications can significantly influence not just your ability to secure business loans and attract investors, but also your personal financial opportunities such as purchasing a home or securing a personal loan.

This article aims to shed light on the multifaceted nature of credit scores for Singapore’s startup owners, emphasizing their importance in both entrepreneurial and personal financial contexts.

What is a Credit Score?

Ultimate Guide to Obtaining a Good Credit Score in Singapore 1

A credit report is essentially a financial report card. It contains detailed records of your credit payment history consolidated from various credit providers. This document is instrumental to lenders in assessing your creditworthiness before they decide to extend credit facilities like personal loans to you.

1000 (HH) to 2000 (AA)

A CBS credit score, a four-digit number, offers a snapshot of your past payment history on your loan accounts. It’s a fluid number, fluctuating with changes in your credit information. A score closer to 2000 indicates robust financial health, while a score nearer to 1000 flags a higher risk of defaulting on payments.

Score Range
Credit Grade
Risk Grade
Probability of Default
1911 – 2000
Low Risk
< 0.27%
1844 – 1910
Low Risk
0.27% – 0.67%
1825 – 1843
Low Risk
0.67% – 0.88%
1813 – 1824
Medium Risk
0.88% – 1.03%
1782 – 1812
Medium Risk
1.03% – 1.58%
1755 – 1781
Medium Risk
1.58% – 2.28%
1724 – 1754
High Risk
2.28% – 3.48%
1000 – 1723
High Risk
> 3.48%
Overview of Different Types of Credit Score

How to check credit score?

You can find out your credit score by requesting an online report from Credit Bureau Singapore (CBS) at the cost of $8.00 (inclusive of GST). If you hae recently made an application for loan or credit facilities from bank, you can get it free within 30 days of your application.

Once ready, other than e-collection, you can opt to collect the physical documents at SingPost Branches Islandwide or Credit Bureau’s office at Shenton Way.

Now that you know how to obtain your credit score, here’s how the scoring system works in Singapore.

How to Obtain a Good Credit Score in Singapore

Ultimate Guide to Obtaining a Good Credit Score in Singapore 2

Pay Credit Card Bills on Time

If you ever missed a credit card bill payment, it will negatively affect your credit score in the long run. So the more you avoid paying your credit card bills, the longer your credit score will take to recover.

Thus, it’s important to pay your credit card bills on time. Not only it strengthens your credit score but helps you maintain a good credit rating. If you have multiple credit cards’ outstanding payments unpaid and have difficulties trying to pay off all the debts, do consider getting a debt consolidation loan for better management of finances.

Never Default on any loans

If you fail to pay monthly loan instalments, it will significantly affect your credit report.

You will be a defaulter in your credit record. It will also be impossible for you to obtain a line of credit, credit card or loan.

So, avoid being a defaulter! If you can’t make the monthly payments, seek a credit counselling to restructure your debt situation.

Not to mention, defaulting might lead to legal action if you have money but simply refuse to pay.

How to Improve Credit Score?

Ultimate Guide to Obtaining a Good Credit Score in Singapore 3

If your credit score has been in dire straits because of late repayments and now, you’re looking to improve — read on.

There is no precise formula to predict how long it takes your credit score to improve.

Your credit score calculation is based on a 12-month rolling basis of your account repayment history. But with discipline and patience, your credit score will gradually improve.

In other words, you can erase your bad credit history by making it a priority to pay all your dues on time in the next 12 months.

Let’s take a look at these tips and tricks to up your credit score to a good number.

Consolidate your debts to Repair Ruined Credit Score

If you have a poor credit score, the most straightforward approach to repair a bad credit score is by settling all loans with a single debt consolidation loan

Banks and legal moneylending businesses offer personal loans to help you build your credit.

After a while, your damaged credit score will be repaired gradually as you’ve paid the loan’s monthly instalments.

If you know your current credit score and it’s around BB or under, you can apply for a personal loan before moving to larger loans such as a home or car loan.

This could lead you to a higher AA rating by the time you plan to apply for a larger loan.

The Importance of Credit Score in Singapore

Credit scores play a pivotal role in Singapore’s financial landscape. Whether you’re applying for a home loan, a new credit card, a renovation loan, or even a job, your credit score forms an integral part of the decision-making process.

In conclusion, understanding your credit score is critical to maintaining your financial health. By taking the necessary steps to improve your score, you not only increase your chances of loan approval but also open doors to better financial opportunities in the future.

FAQS About Credit Score in Singapore

What is a credit score and why is it important?

A credit score is a numerical expression of a person’s creditworthiness, calculated based on their credit history. It’s used by lenders, such as banks and credit card companies, to evaluate the potential risk of lending money. For startup owners, a good credit score can increase the chances of obtaining business loans and better interest rates. For individuals, it can affect the ability to secure mortgages, personal loans, and even rental agreements.

How is a credit score calculated in Singapore?

The Credit Bureau of Singapore (CBS) calculates credit scores based on several factors such as payment history, the amount of credit owed, the length of credit history, types of credit in use, and new credit applications. The score ranges from 1000 to 2000, with a higher score indicating lower credit risk.

How can I improve my credit score?

There are several ways to improve your credit score. Paying bills and loan repayments on time, keeping credit balances low, not applying for credit frequently, maintaining a mix of credit types, and regularly reviewing your credit report for accuracy can all contribute to a higher score.

How can I check my credit score in Singapore?

In Singapore, you can obtain your credit report from the CBS. The report can be requested online, by mail, or in person at the CBS office. There is a nominal fee for obtaining your credit report.

Does my personal credit score affect my business credit score in Singapore?

While personal and business credit scores are usually separate, for small businesses and startups, lenders often consider the owner’s personal credit score especially when the business lacks a substantial credit history. Therefore, maintaining a good personal credit score can be crucial for business owners in Singapore.

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