What A Moneylenders Credit Bureau (MLCB) Loan Information Report Means
September 7, 2022
Have you ever taken a loan from an authorised moneylender? If so, have you noticed that the available loan amount could have increased or decreased?
This is because lenders will consider factors other than your regular paycheck when determining how much money you can borrow from them. Your credit report and score will also be reviewed.
This data is available from the Moneylenders Credit Bureau (MLCB).
The MLCB compiles this report after collecting and analysing data on all loans and payments made to licensed money lenders in Singapore.
If you apply for a loan from a licensed money lender, it will have to run your moneylender report.
This moneylender report enables licensed money lenders to make more informed decisions when they review loan applications.
If you’re trying to get a larger loan with a longer loan tenure, this could be a factor for lenders to consider.
What Is The MLCB?
The Ministry of Law of Singapore established the MLCB in March 2016.
The MLCB serves as a single database for all loan information (requests and payments) provided by money lenders in the country.
This measure was taken to reduce the number of borrowers taking on excessive debts.
Before this, the MLCB did not have access to the data. DP Information Group (DP Info) created and implemented the MLCB.
Therefore, the team is accountable for ensuring the daily functionality of the MLCB.
The purpose of an MLCB loan information report is to provide the lender with details that will allow it to determine whether the applicant can afford to repay the loan.
Lenders will consider the applicant’s credit history and the number of loan applications submitted during the preceding three years.
If you want to apply for a loan from a money lender, your moneylender report will definitely be reviewed.
How Do I Get My MLCB Report?
Your moneylender report should be reviewed annually, at the very least.
This is a fantastic method for preventing identity theft. In addition, it is possible to identify errors in your credit report that could have a negative impact on your credit score.
Similar to the MLCB report, a credit report details any outstanding loan or credit card balances at financial institutions.
If you go to a licensed money lender to seek a loan, it will run your information through the MLCB. Money lenders can and will check your credit if you still owe them money.
You can order a copy of your credit report at any time for a nominal sum. If you are curious about how licensed money lenders see your credit, you can acquire a report from the MLCB.
You can do this at the Credit Counselling Singapore office, the MLCB office, or its website.
What Does An MLCB Report Include?
In the moneylender report, lenders can find all the data they need to decide whether to extend credit in an MLCB report.
The moneylender report includes the account’s start date, current status (open or closed), balance, payment due, and payment history.
However, depending on your account settings, this information may not be accessible.
You can also find your name and address in any public database (e.g. bankruptcies, judgments, and liens).
Unless a court order or a request from a creditor or debt collector has removed these from public record, any public documents concerning you will be included in the moneylender report.
Your “personal information” refers to details about you that may be determined through public sources – such as your name, address, and NRIC number.
A credit score is a four-digit figure that summarises the information in your credit report. If the score is high, there is a lower chance that the loan won’t be repaid.
When creditors or collection agencies take you to court to collect on unpaid debts, they ask the court for a civil judgment.
For example, if you owe money to the court for child support, alimony, or any other reason, the court might file a lawsuit to collect the money.
As a last resort, you can file for bankruptcy if you have accumulated at least $15,000 in debt and cannot repay your debts.
However, the bankruptcy record will remain on your credit report for 10 years from the day you filed.
Does Buying A Credit Report Affect Your Score?
When you pay for a copy of your credit bureau report, it does not affect your credit score.
This is because simply determining your borrowing eligibility does not affect your credit score.
In fact, you should check up on it every so often to ensure your credit history is accurately reported to authorised or licensed lenders.
A free copy of your MLCB report is available yearly from Singapore’s credit bureaus.
If you disagree with something in your credit report or notice an error, you can write to the credit bureau. It will then contact the banking institution as soon as possible.
In addition, a notation will be added to your credit report to let you know that your details are now under review.
Eventually, you will receive further guidance from the Moneylenders Credit Bureau.
In addition, all banks requesting your credit report within the past three months will receive an updated version if any modifications have been made.
Therefore, you should know how to check your credit report every now and then.
What Is A Licensed Money Lender?
The government must license those who lend money to Singaporeans.
Individuals, sole proprietorships, and corporations are all valid entities to have a money lender license.
To become a licensed money lender in Singapore, one needs to apply to the Moneylending Branch of the Central Bank of Singapore.
When granting a license, the authority will consider the applicant’s financial resources, credit, and business strategy.
Before deciding whether to extend credit, a licensed lender will review your moneylender report to understand your financial situation.
You can use the information in the report to work toward raising your credit score, and eventually improve your loan eligibility and interest rate options.
What Loans Are Not Reported To The Credit Bureau?
A mandatory reporting system is in place when all loans made through legitimate money lenders in Singapore are included in a borrower’s credit file.
Old debts that have been paid, defaulted, and are still being repaid are also included.
However, personal loans from family or friends and foreign loans won’t be included in the moneylender’s report and grade.
How Do I Get My Credit Score?
You can request for a free or low-cost report if you are a Singaporean.
The Singapore Central Bank requires you to make an online request.
However, the most reliable approach to discovering your credit score will cost you around $6.40.
But there are ways to receive a free credit report that you should know about.
When applying for a wedding loan, vehicle loan, or personal loan with a credit facility, you are entitled to a free credit report. It doesn’t matter if the account has been approved or not.
On top of that, once a year, you should get a free moneylenders report from each of the three consumer reporting agencies.
You can then examine your borrowing data and ascertain whether the details presented in your credit report are accurate and comprehensive.
What Is A Good Credit Score?
Your credit is good if you are approved for the loan you need.
In addition, a higher credit score increases your chances of qualifying for better loan conditions and interest rates.
Your credit score is determined by the details in your credit report, such as the number of payments you’ve missed and the amount you still owe on debts.
Therefore, maintaining a positive standing with the reporting entities calls for careful money management.
If you are wondering what a good credit score in Singapore is, 2,000 is the number. It means you have outstanding credit. If it’s between 1,000 and 1,723, you have bad credit.
Consequently, in the latter case, you shouldn’t expect any legitimate lenders to extend your credit.
Both licensed money lenders and borrowers like yourself have benefited from the Moneylenders Credit Bureau.
Licensed lenders are no longer at risk of financial loss. From the moneylender report, they can now determine the likelihood that a borrower will fail to make their repayments.
On the other hand, because they only acquire a few loans, borrowers don’t end up in too much debt and are less likely to default on their payments.
Those who don’t want to be eligible for unsecured loans from licensed money lenders can request self-exclusion through the MLCB.
You now have a deeper understanding of what a Moneylender Credit Bureau Report is and how to utilise it to your advantage.
If you ever need a quick loan again, you’ll want to make sure your credit score is in good shape.
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