A credit score is primarily based on your credit report information which typically sourced from credit bureaus. It also represents the creditworthiness of an individual if you seriously delinquent on your credit obligations in the 24 months scoring.
Lenders used credit scores to determine the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Also, to evaluate if the borrowers if qualify for a loan, at what interest rate, and what credit limits.
- Limit your applications for new credit
Attempt making multiple loan applications will be labelled as a credit hungry for cash. If you badly need a cash go to various lenders to get a loan, and this will look as bad for future potentials lenders as they can also check your enquiries in your credit history. For those who really have to do a couple of loan applications, have an interval. Avoid getting a house loan and another personal loan if in case you realize you need more cash for down payment. You can acquire your home down payment from Central Provident Fund (CPF) while if you would like to get a Housing and Development Board (HBD) flat, then use a personal loan to pay other costs as personal are more flexible than house loan.
- Pay your statement diligently
Avoid ignoring your moneylender’s letters to remind you of your payment. One way to ensure your payments are on time is to set up auto-payments or set up electronic reminders. Lenders typically look for a proven track record of timely payments. When you have short come for the scheduled of payment, instead of hiding and defaulting you can tell them ahead of time.
- Take a small loan and repay
Even you have a bad crediting, one way to repair it is by taking a small loan and repaying straight diligently. It would take some time, perhaps a year or two, yet it will help in the long run and you will be able to get a higher loan. You will possibly get a loan at S$500 without worrying about your credit score, though you will expect most lenders to give a higher interest rate.
- Don’t default your loans regardless of the amount
Failure to repay your low interest personal loans, you might not be able to get another loan anymore. It would be impossible to get a home, car or student loan. If they had been found out you with a spiraling debt and you think it might be impossible to pay all your loans, you can have your debt consolidated and get in touch with the credit counselor.