What Credit Score Is Good In Singapore? Understanding And Improving Your Financial Rating

Personal Finance

What Credit Score Is Good In Singapore? Understanding And Improving Your Financial Rating

September 24, 2023

Are you having trouble keeping up with your bills and budget in Singapore? Are you confused by the abundance of financial options, such as loans and credit cards?

You need a solid grasp of credit ratings to get your finances in order. Understanding the calculation of credit ratings in Singapore is vital because they can affect your ability to get a line of credit or a loan.

Let us understand what credit score is good and how you can improve your financial rating.

Definition And Importance

Before we get to how to improve our financial rating, we must first comprehend what is a credit score.

A score on a credit report is a quantitative indicator of a person’s general creditworthiness. It functions as a scoring system that lenders use to decide if you qualify for borrowing and the amount of interest you would pay.

The Credit Bureau Singapore records people’s private information, including the repayment of loan history and banking account activity. It uses this data to assign numerical values representing the individuals’ creditworthiness.

The more favourable your credit score is, the more likely you are to qualify for loans and other forms of credit. A good credit score can illustrate financial stability and promote a person’s economic growth.

Range Of Credit Scores

According to Singapore’s credit scoring system, a good credit score on the CBS typically falls between 1,844 and 2,000. This scale, which ranges from 1,000 to 2,000, assesses a person’s likelihood of failing to pay their debts.

If you have a score of at least 1,844, it shows that you’re a trustworthy borrower who will not skip payments. Scores below 1,844 signify greater risk and may affect your future ability to obtain credit from creditors.

Understanding The Credit Range (300-850)

An excellent credit score, following a scale from 300 to 850, is typically over 700. A perfect 800 on the same scale indicates superior performance.

Credit Categories

The different credit categories include:

Poor300 to 579
Fair580 to 669
Good670 to 739
Very good740 to 799
Exceptional800 to 850

Comparison With International Standards

The typical credit score for a person ranges from 600 to 750. The median FICO Score in the United States in 2022 was 714. A decent credit score falls somewhere around 670 to 739 on a scale from 300 to 850, as used by FICO.

Factors Influencing Credit Scores

The factors that influence credit scores include:

Payment History 

You may improve your credit ratings by paying your bills on time each month. However, your ratings may take a hit if you fail to make timely payments, have an account put into collections, or declare bankruptcy.

Credit Utilisation

Considerations include the number of open accounts, total outstanding amounts, and rate of credit utilisation (the proportion of available credit one uses on revolving lines).

Length Of Credit History 

This category comprises the typical age of your card accounts and the ages of your earliest and latest accounts.

Credit Accounts

This factor, also known as “credit mix,” takes into account whether or not you’re responsible for the two instalment accounts (like a vehicle loan, mortgage, or personal loan) and revolving credits (like credit cards) at the same time.

You can improve credit ratings by demonstrating responsible handling of both accounts.

Recent Credit Inquiries 

This takes into account new account applications and openings.

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How To Improve Credit Score In Singapore

How To Improve Credit Score In Singapore

You can improve your credit score in Singapore by:

Monitoring Credit Reports

Ensure that any new credit accounts you register will appear on your credit history, even if you don’t have many open. Lines of credit and credit cards are examples of revolving accounts, whereas student, vehicle, and mortgage loans are examples of instalment accounts.

Paying Bills on Time 

A single late payment can negatively affect your credit ratings for seven years after failing to pay. If you are having financial difficulties and fear missing a payment, contacting your loan providers immediately is important to see if they can make any arrangements.

Reducing Debt 

Considerable weight goes to the ratio of your outstanding balance to your available credit limit when calculating the credit utilisation percentage.

Keeping the rate you use credit low is one way to boost your scores. Individuals with stellar credit histories rarely use more than 10% of their available credit.

Avoiding New Credit Applications

A hard inquiry appears on your credit report when you request an additional account, which could lower your score. The effect is usually small, but making numerous loan or credit card applications quickly can have a more noticeable negative impact.

Understanding Different Credit Scoring Models

There are different credit scoring models in Singapore, which we will discuss in detail below.

Credit Bureau Singapore (CBS) Scores

CBS uses the table below to measure your likelihood of defaulting on the loan.

Score RangeRisk GradeMaximum probability of defaultMinimum probability of default

Comparison With FICO Scores And VantageScore

Let us see how FICO and VantageScore compare.


A variety of FICO credit scores are available to consumers. Aside from ‘base’ FICO ratings, the business also produces industry-specific rating systems for credit card companies and auto loan providers.

The range of FICO’s industry-specific ratings for credit is diverse, falling between 250 and 900. However, the intermediate ranges maintain the same classifications. Therefore, a FICO Score that’s ‘good’ industry-specific remains 670 – 739.


The three major credit reporting agencies (Experian, Equifax, and TransUnion) came up with VantageScore as a substitute for FICO Score to rate consumers’ creditworthiness.

Every credit bureau has its own unique FICO score that depends solely on data from the bureau. Credit bureaus use different methodologies to arrive at their scores. So, the FICO is essentially three separate numbers. Each credit reporting agency utilises the same data to generate one combined score called a VantageScore.

Impact Of Credit Scores On Financial Decisions In Singapore

The impacts of credit scores on financial decisions in Singapore include:

Loans And Interest Rates

Lenders can see your reliability and financial stability via your score on the credit report. Your credit score significantly impacts the fees and terms set by various lenders and the likelihood of the loan request approval.

You should improve your credit score before requesting major loans like a mortgage, auto loan, or personal line of credit. A lower interest rate throughout the term of a loan means thousands of dollars in savings for the borrower with a higher credit score.

Credit Card Approvals

Just like with qualifying for a personal loan or mortgage, acquiring a credit card involves the consideration of your credit score, which in turn affects both the credit limit and interest accompanying the account.

Establishing a favourable credit history necessitates a considerable amount of time, and initiating this process by acquiring a credit card is a reasonable first step. While establishing yourself as a creditworthy borrower and receiving better terms on future credit cards, your initial cards may have fewer restrictions and high interest.

Carrying a load from one billing cycle to the next is costly in terms of interest, might lower your credit rating, and may affect your repayment terms on future loans.

Employment Opportunities

While prospective employers have no record of your credit rating, in some jurisdictions, they may obtain certain information from your credit history with your authorisation. Even if not all companies conduct them, it’s always smart to keep your credit in good standing, just in case.

Credit ratings have such a profound effect on so many different things, emphasising the value of developing sound financial knowledge and self-assurance.

Building a financial toolkit and working to raise your credit score are never late steps toward reaching your financial objectives. You may improve your credit score by starting with simple steps like paying off your debt on credit cards and additional bills in full every month.

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Taking your credit score seriously is crucial because it is a key sign of financial stability. If you know where you stand financially, you may make better choices about loans and other financial matters.

There are monetary advantages to learning about and monitoring your credit score. You can utilise Singapore’s tools and resources, such as Free Credit Score Checks, Credit Monitoring Services, and Educational Resources for Financial Literacy.