Understanding Your Credit Reputation
Credit is prevalent in our everyday lives nowadays. It is hard to find anyone without a credit facility these days, be it credit card, motor vehicle or mortgage loan. In the year of 2017 alone, over 1.4 million new credit applications were made. (Consumer Credit Index)
However, do you know 9 out of 10 credit applicants have not seen their credit report before?
It is important to start understanding and knowing what is in your credit report as most lenders will check your credit file to assess your credit worthiness prior to making a decision. Having a good credit plays a huge part in helping you to achieve the many milestones in life such as starting a business, owning your dream car or home. Some employers may conduct an employee credit health check on your credit report during the job application process. Thus it’s critical to make payments on time, all the time and make payment in full, always.
Your credit report is a record of your credit payment history compiled from banks and major financial institutions. Credit Bureau Singapore (CBS) supplements it with publicly available information such as bankruptcy data from the Insolvency and Public Trustee’s Office (IPTO). The report will also indicate your credit score. A good credit score and credit repayment history will make it easier for you to obtain credit and qualify for loans.
So What Information is Displayed in Your Credit Report?
- Summary of your personal credit facilities, aggregate credit limits and indication of identity theft
- Account Status History– display of all the credit accounts you have with banks and financial institutions who are CBS members
- Previous Enquiries– shows a list of various lenders that have searched on your information and your own searches of yourself
- Default Records– reflects lenders who uploaded a default in a credit account, the product type, loan amount defaulted, outstanding balances and repayment status
- Bankruptcy Proceedings– information on the original order date and discharge date by IPTO
- Debt Repayment Scheme (DRS)– a voluntary and debtor-driven scheme by IPTO to assist debtors in repaying their debts over a fixed period of time
- Narratives– indicates involvement in Debt Management Programme (DMP) with Credit Counselling Singapore (CCS) and any amendments made to the information in the report
- Credit Score – a numerical expression based on the past payment history of credit or loan accounts to determine one’s creditworthiness
- Aggregate Outstanding Balances – outstanding balances are computed based on the amounts outstanding under your credit cards or other credit facilities
Not all of your information with the banks and lenders will be collected. Personal data like your income, telephone number, deposit amount and full address are excluded and are not displayed in your credit file.
How Long Does Information Remain on a Credit Report?
It is also important to be aware of the length of period where your information will be displayed on your credit report.
| Section | Data Retention Period |
| Account Status History | · 3 years from the date of closed credit account.· All active credit accounts will reflect the most current 12 months of payment status history. |
| Previous Enquiries | · 2 years from date of enquiry. |
| Default Records | · 3 years from date of Negotiated and Full Settlement.· Indefinitely for Outstanding and Partial Settlement. |
| Bankruptcy Proceedings | · 5 years from date of discharge |
| Aggregate Outstanding Balances | · A preceding 6 months display of historical outstanding balances as reflected in your statement of account with respective lenders. |
For example, a default record will remain on your report for 3 years from date of settlement of the debt. Hence it is very important to keep a consistent good payment behavior as any bad mark left on the report will not be able to be erased off overnight.
Start knowing what the lenders know about you today by obtaining a copy your credit report from CBStoday at $6.42 per copy. Don’t leave your credit reputation to chance and be in the know of your credit file!