Understand how your credit report and credit score affects personal loan approvals from banks and licensed moneylenders in Singapore.
Your credit report is one of the most important documents when applying for a loan in Singapore. Whether you are searching for the best personal loan in Singapore or in urgent need of cash, your credit score can make or break your application.
Understanding your credit score is the first step to fast loan approval in Singapore. In this article, we will break down what a credit report contains, how it is reviewed by banks and licensed moneylenders, and most importantly, how it affects your loan eligibility and approval chances.
What Is a Credit Report?
A credit report is a detailed summary of your financial behaviour and credit history. In Singapore, there are two main credit bureaus: Credit Bureau Singapore (CBS) and Moneylenders Credit Bureau (MLCB).
CBS is the main consumer credit bureau in Singapore. It consolidates your credit data from banks and major financial institutions. The MLCB is a separate credit bureau specifically for licensed moneylenders in Singapore, regulated by the Ministry of Law.
Your credit report includes:
- Personal Details (name, NRIC, address)
- Credit Profile (credit cards, personal loans, mortgages)
- Credit Limits & Balances
- Repayment History
- Defaults or Late Payments
- Number of Loan Enquiries
- Credit Score & Risk Grade
Every time you apply for a loan, take out a credit card, or miss a payment, this activity is recorded in your credit report. Lenders use this information to assess your creditworthiness.
You can request a copy of your credit report from CBS here, or from the MLCB here. This depends on the type of credit you are applying for.
What Is a Credit Score?
CBS assigns a risk grade (AA to HH) based on your score, which indicates the likelihood of loan repayment. The higher the score, the better your credit standing.
Credit Score Table in Singapore
| Score Range | Risk Grade | Probability of Default |
| 1911 – 2000 | AA | 0.00% – 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 | 1.03% – 1.58% |
| 1755 – 1781 | FF | 1.58% – 2.28% |
| 1724 – 1754 | GG | 2.28% – 3.46% |
| 1000 – 1723 | HH | 3.46% and above |
Your risk grade plays a huge role in determining whether you qualify for the best personal loan in Singapore or get rejected altogether./
Who Checks Your Credit Report in Singapore?
Your credit report is not only just for banks. It is used by a wide range of financial service providers in Singapore. These include:
- Banks & Financial Institutions
When applying for a low interest personal loan or credit card, banks will review your CBS credit score before making an offer. - Licensed Moneylenders
All licensed moneylenders will access your MLCB report before offering any personal loan or short-term financing. - Buy-Now-Pay-Later (BNPL) Services
Some BNPL platforms perform soft credit checks to assess whether you qualify for their payment options. - Employers & Property Agents
In rare cases, like job roles in finance or when renting a high-value property. Your credit score may be reviewed to assess financial responsibility.
How a Credit Report Affects Loan Approvals
If you were ever declined for a loan or received sky-high interest rates, chances are your credit report played a role. Whether you are applying through a bank or licensed moneylenders in Singapore, your credit report is used to evaluate:
- Loan Eligibility
A poor credit score may disqualify you from getting a loan in Singapore. Banks and licensed moneylenders use risk grades to determine your reliability as a borrower. A strong credit profile increases your loan eligibility in Singapore dramatically. - Interest Rates
Borrowers with excellent credit scores are more likely to receive low interest personal loan offers, saving significantly on total repayment. A risk grade of AA to BB typically gets access to low interest personal loan packages, while those with a DD grade or lower might face significantly higher interest rates. - Loan Amount
Your credit history and debt levels also affect how much you can borrow and whether you are eligible for a higher loan quantum. - Fast Approvals
Some banks and licensed lenders tend to process applicants with strong credit profiles faster. If your credit score is high, you are considered a low-risk applicant.
What If You Have a Poor Credit Score?
Having a bad credit score does not mean you are completely shut out of the loan market. But it does affect the terms offered to borrowers with imperfect records.
- Higher Interest Rates
When your credit score is low, lenders view you as a higher-risk borrower. To compensate for that risk, they may charge significantly higher interest rates. - Lower Loan Amount
A poor credit score may result in lenders offering you a lower loan quantum. This is because they are less confident in your ability to repay a larger sum. Even if you meet the minimum income requirement, a weak credit history can restrict the total amount you’re eligible to borrow. - Find a Guarantor
If your credit score is low, some lenders may require you to provide a guarantor. A guarantor is typically someone with a stronger credit profile who agrees to take over the loan repayment if you default. This reduces the risk for the lender and increases your chances of approval. - Consider Licensed Moneylenders
Many licensed moneylenders in Singapore are more flexible than banks. While they still review your MLCB report, they often prioritise your current income and ability to repay, making them a suitable choice for those looking for a personal loan for low income earners. - Improve Your Credit Score
Your credit score can improve over time with consistent effort. Paying your loan repayments and reducing your overall debt load will gradually boost your score.
Tips to Improve Your Credit Score
Improving your score is not an overnight process, but even small changes to your financial behaviour can make a big difference over time.
- Pay All Loans and Credit Cards On Time
Timely payments on loans and credit cards will gradually improve your credit score. - Avoid Maxing Out Your Credit Limits
Maxing out your credit cards or loans signals financial stress to lenders, which hurts your credit score. - Avoid Multiple Loan Applications
Multiple loan applications in a short time can lower your credit score. Instead, use Loan City to find the best loan offers without affecting your score. - Avoid Defaulting
Missed payments or defaults hurt your credit score and may remain on your report for years.
Find the Best Loans in Singapore with Loan City
Your credit report is more than just a number, it is your financial reputation. By understanding and improving your score, you can open doors to better loan offers, higher approval rates, and ultimately, greater financial freedom.
At Loan City, we help you compare a wide range of personal loans in Singapore from trusted partners including licensed moneylenders and banks. Whether you are in urgent need of cash, or simply want to secure the best personal loan in Singapore. Loan City is here to help.
