How do these financial companies assess your credit worthiness?
Do you know that for S$6.42, you can purchase your own credit report using your singpass via electronic payment.
Here is the website www.creditbureau.com.sg
Your credit report is a record of your credit payment history compiled from different credit providers. CBS will provide credit data to its members (credit providers such as banks etc) to help them to determine whether or not the person applying for credit is a good credit risk. Examples of credit applications includes credit card, motor vehicle loan, housing loan etc. In doing this, lenders can make better lending decisions quickly and objectively.
MY 2014 REPORT
In 2014 July, I bought my first credit report and blog about it. Refer to blog article: My Credit Report from CBS
Attach to each Credit Report is a Credit Bureau Score. A Credit Score is a number used by lenders as an indicator of how likely an individual is to repay his debts and the probability of going into default. It is an independent assessment of the individual’s risk as a credit applicant.
The Bureau Score 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. This information is provided by and collated from various sources.
The Bureau Score can range from 1000 – 2000 for risk grades AA – HH. Score and non-scored risk grades are shown in the table below. The score ranges from 1000 to 2000, where, statistically, within the next 12 months, individuals scoring 1000 have the highest probability of defaulting on a repayment, whereas those who score 2000 have the lowest chance of reaching a delinquency status.
My 2020 REPORT – SAMPLE
DISCLAIMER BY CBS
The Bureau Score is meant for use by Members of Credit Bureau (Singapore) Pte Ltd as one of the many factors considered for the purpose of assessing the credit worthiness of their customers and would not be recommended for any other purposes including, but not limited to, employment checks, employee assessments and monitoring.
The Bureau Score or this Credit Report does not draw any conclusions or make credit decisions for financial institutions. The Bureau Score is only one of various pieces of information used by financial institutions in their credit assessment process. The use of the Bureau Score by a financial institution for credit assessment is entirely optional. Each financial institution has its own internal credit score and risk profile for each applicant including the applicant’s financial and demographic information. Credit Bureau (Singapore) Pte Ltd is not involved in any way in the credit decision process of the financial institution.