A Complete Guide to Improving Your Credit Score in Singapore

Whether it’s a mortgage, a personal loan, or even an urgent cash loan in Singapore that borrowers often turn to in emergencies, your credit score is one of the most important factors. A strong score signals reliability to lenders, while a poor one can mean higher interest rates or outright rejection.

In this guide, we’ll break down exactly how credit rating in Singapore is calculated, what lenders look at in your credit reports, and what you can do when it comes to building a credit score.

Understanding Credit Rating in Singapore

In Singapore, the Credit Bureau Singapore (CBS) is the only licensed credit bureau that compiles consumer credit information from all major banks and financial institutions. Most of the time, when you apply for a loan or credit facility, the lender retrieves your credit report to evaluate your risk profile.

Credit Score Range

CBS assigns a score between 1000 and 2000, grouped into risk grades (AA to HH):

Score Range	Risk Grade	Probability of Default
1911-2000	AA	≤ 0.27%
1844-1910	BB	0.27% – 0.67%
1825-1843	CC	0.67% – 0.88%
1813-1824	DD	0.88% – 1.03%
1782-1812	EE	0.88% – 1.58%
1755-1781	FF	1.58% – 2.28%
1724-1754	GG	2.28% – 3.48%
1000-1723	HH	≥ 3.48%

In simple terms, a score closer to 2000 suggests reliability and timely repayment behaviour, while scores closer to 1000 flag you as a higher risk.

What Are the Factors That May Affect Your Credit Rating in Singapore?

CBS does not disclose its exact formula, but it provides transparency on the main elements that influence how your score is calculated. These are the six core factors:

1. Utilisation Pattern

This refers to how much of your available credit limit you actually use. For example, if your credit card limit is $10,000 and you regularly carry balances of $8,000, your utilisation rate is 80% – a red flag for lenders. Keeping your usage low signals responsible borrowing behaviour and can help in building credit score in Singapore.

2. Recent Credit

If you’ve opened multiple new accounts or facilities within a short span, lenders may see you as overextending financially. This is especially important when applying for an urgent cash loan in Singapore that consumers usually turn to in emergencies. Spacing out applications and applying only when necessary prevents your credit score from being dragged down.

3. Account Delinquency Data

Late or missed payments – known as delinquencies – are penalised in credit scoring. Even one late payment can lower your score, and defaults will remain on record for years. Maintaining prompt payments across all facilities is essential for a healthy credit rating in Singapore that institutions can trust.

4. Credit Account History

The length and quality of your credit history play a major role. Borrowers with longer, established histories of timely repayments are viewed as more reliable than those with limited or no track record. CBS considers 12 months of repayment conduct for both open and closed accounts (including defaults) when computing your score.

5. Available Credit

This refers to the number of active accounts you have open for borrowing. Having some available credit is positive, but holding too many credit facilities at once can indicate risk exposure. Lenders prefer to see a balanced, manageable level of accounts under your name.

6. Enquiry Activity

Every time a bank or financial institution checks your report due to a loan or credit card application, it creates an “enquiry” record. A high volume of enquiries within a short period signals possible financial strain, which can negatively affect your score.

Note that self-checking your own report does not harm your score, and loan reviews by existing lenders also do not affect it.

To minimise risk perception, limit the number of new applications and avoid shotgun-applying for multiple facilities at once.

You may be interested in: How a Bad Credit Loan in Singapore Can Offer a Fresh Start

What’s Inside a CBS Report?

When you purchase a copy of your report from CBS, you’ll see several key sections, including but not limited to:

1. Personal Information – Name, NRIC, address, and employment details.
2. Account Status History – 12 months of repayment records across all facilities.
3. Default Records – Any overdue payments or charge-offs.
4. Credit Enquiries – A record of recent applications for loans or credit cards.
5. Aggregated Credit Limits – The total amount of credit facilities extended to you.
6. Credit Score and Risk Grade – Your numerical score and grade band.

For lenders, this report is the primary tool to assess your credit rating in Singapore.

How Lenders Use Your Credit Score

Different types of lenders evaluate your credit report differently:

• Banks & Financial Institutions:
  • Rely heavily on your credit score.
  • Required by the Monetary Authority of Singapore (MAS) to practise responsible lending.
    For example, personal loans are capped at 12 times your monthly income, and exceeding this requires stricter assessment.
    
• Licensed Moneylenders:
  • Governed by the Moneylenders Act.
  • May lend smaller sums even if your credit score is weak, but interest rates are capped at 4% per month, with late fees capped at $60 per month.
  • They may still check credit reports to gauge repayment risk.

This means that even with a weaker score, you may still obtain an urgent cash loan in Singapore, but the terms (interest rates, repayment period, approval amount) will be less favourable compared to someone with an AA or BB rating.

Practical Steps for Building Credit Score in Singapore

Here are specific, evidence-backed actions to improve your credit standing:

1. Always Pay On Time
   • Use GIRO, auto-debit, or calendar reminders.
   • Prioritise at least the minimum due on credit cards to avoid “late” marks.
     
2. Reduce Credit Utilisation
   • Aim for <30% usage of available limits.
   • Pay off balances multiple times a month if needed.
     
3. Avoid Over-Applying for Credit
   • Space out applications. Too many in a 3- to 6-month window raises red flags.
     
4. Maintain Long-Standing Accounts
   • Keep older accounts active, even with minimal usage, to lengthen history.
     
5. Diversify Credit Responsibly
   • A mix of credit card and instalment loan usage can improve your profile.
     
6. Monitor Your CBS Report
   • Request a report once a year to check for inaccuracies.
   • Dispute errors directly with CBS to ensure your score isn’t unfairly penalised.

Learn more: From Bad Credit to Smart Borrowing: How to Get Better Loan Terms

Your Credit Score Matters

Your credit rating in Singapore isn’t just a financial metric – it’s a key to future opportunities, from buying a home to expanding a business. The process of building credit score in Singapore is gradual but achievable with consistent repayment behaviour, prudent utilisation of credit, and regular monitoring of your credit report.

If you’re looking to improve your financial profile while exploring loan options that match your circumstances, our team at Tembusu Financial Services can guide you with transparent, regulated solutions.

Get in touch with us today.