How to Get the Best Credit Score to Apply for Loans in Singapore

Here’s how to improve your credit score or maintain a healthy one to help you easily apply for personal loans in Singapore.

Priscilla Lee

by Priscilla Lee on Mar 22, 2024

hand holding credit cards

Want to apply for personal loans in Singapore to ease your cash flow? You must first evaluate your credit score because it is the key component that financial institutions will look into before approving any loan application.

Just what is credit score all about? This article will provide important insights into the rating system and how to improve your credit score if it is not in the pink of health.

Related: True Story: How I Raised My Credit Score From DD To AA Grade In 6 Months

hand holding credit cards
Source: Unsplash

Compare The Best Credit Cards in SingaporeFind Out More

What Is a Credit Score?

Simply put, a credit score is a numerical representation of your creditworthiness. This score is assigned by the Credit Bureau Singapore (CBS). 

Credit Score Risk GradesProbability of Default
AA (Score 1,911 – 2,000)0.00% – 0.27%
BB (Score 1,844 – 1,910)0.27% – 0.67%
CC (Score 1,825 – 1,843)0.67% – 0.88%
DD (Score 1,813 – 1,824)0.88% – 1.03%
EE (Score 1,782 – 1,812)1.03% – 1.58%
FF (Score 1,755 – 1,781)1.58% – 2.28%
GG (Score 1,724 – 1,754)2.28% – 3.46%
HH (Score 1,000 – 1,723)3.46% – 100.00%

Source: Credit Bureau (Singapore)

Each credit score is a four-digit number that ranges from 1,000 to 2,000. AA rating at 2,000 is the best and HH rating at 1,000 is the worst. Financial institutions rely on these credit scores to determine if they are willing to offer the applied loan.

If your credit score is close to 2,000, your personal loans applications in Singapore are more likely to be approved by banks and financial institutions if you are borrowing within your total debt servicing ratio (TDSR). You are also in a better position to negotiate for better terms. On the flipside, a low credit score is not likely to get you very far in loan negotiation with a bank.

Related: Why Your Credit Score Is Holding You Back & How to Fix It

How Your Credit Score is Calculated

Your credit score is not a random number that is assigned to you. The CBS will pool together all your credit payment history and assess the data to determine your financial health, reliability to repay debts and probability of defaulting them. Typically, your credit score is calculated based on your payment history, amount owed, new credit, length of credit history and credit mix.

It may not be easy to tabulate your own credit score because CBS uses a proprietary algorithm to track every person’s credit usage. If you wish to obtain a credit report, you can make a request online, at any of the SingPost branches or at the Credit Bureau office. The report is chargeable at S$8.

Related: Debt Consolidation – How A Personal Loan Can Help Save Money Paying Off Credit Card Debt

How To Maintain Your Credit Score

If you already have a good credit rating in the range of AA or BB, you are in a fine position to apply for personal loans or any types or loans in Singapore and even negotiate for larger loan sums or more favourable interest rates. However, your credit score is much like your health, you need to exercise prudence and take the right actions at all times to keep it at an optimum level.

What can you do to maintain your credit score? The easiest way is to pay all your loans on time and avoid spending close to or beyond your credit limit. Do not sign up for many credit facilities just because you can. CBS may perceive your extra credit lines or credit cards as potential for piling up debts.

Another mistake that many people made that dragged down their credit scores is making multiple loan enquiries with several banks within a short frame of time. It is understandable that you may want to compare rates or assess which institution will offer you better terms, but by doing so, you are sending a signal to CBS that you are ready to take on a lot of debt at once.

A more strategic method to get around this is to do your research via online resources like our Best Personal Loans page to gather the right information before submitting a loan application.

Related: 4 Tips on Building Your Credit Score in Singapore

pay debt written on notepad
Source: Unsplash

How To Improve a Poor Credit Score

Poor credit rating can be anywhere from CC to HH. With every declining grade, you are lowering your chance of receiving credit approval from mainstream financial institutions. This is also one of the reasons why some borrowers are turning to licensed moneylenders instead of banks that exercise more stringent credit reviews before handing out a loan.

How to improve your poor credit score? Besides using the same methods recommended for maintaining a good rating, you must take even more diligent effort to fix the damages in your credit history.

Repair Credit Score With Short-Term Loans

If you have several outstanding debts that you are unable to pay on time, using a debt consolidation loan to accumulate all the loans into one can simplify your repayment process. Even though this may cause your credit score to dip a little because of the additional line of credit, the effect will ease once the outstanding credits are paid.

Manage Your Credit Lines Diligently

Ensure all your credit facilities within a 12-month history are paid within 28 days. Pay off your monthly bills in full instead of fulfilling only the minimal amount every month because this runs the risk of piling up interests and late payment fees.

Limit the Number of Credit Cards

Retain only two or three credit cards so that the total number of credit accounts is kept low at all times. Deactivate any credit card or credit line that you no longer use. This can help you save on annual fees and presents a healthier financial outlook to CBS.


Now that you know how to improve your credit score, applying for personal loans in Singapore will now be a breeze.

Check out our best personal loans page for a comprehensive list of financial institutions offering the best deals for your specific needs.

Compare The Best Credit Cards in SingaporeFind Out More

Read More:


Cover Image: Pexels

This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation or endorsement by AMTD PolicyPal Group in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Under AMTD Digital, AMTD PolicyPal Group consists of PolicyPal Pte. Ltd., Baoxianbaobao Pte. Ltd., PolicyPal Tech Pte. Ltd., and ValueChampion.