Starting next month, consumers applying for a new credit facility with a bank or financial institution will be told they can get a free copy of their credit report, regardless of the outcome of the application.
The move is to make it easier for individuals to review their credit standing, said Credit Bureau Singapore (CBS) in a press release issued on Monday (Mar 21).
Consumers can currently request for a copy of their credit report from CBS at S$6 excluding GST.
The report contains a record of an individual’s payment history, including the last 12 cycles of repayment, showing promptness of payments, as well as records of default and bankruptcy, if any.
It also includes a credit score, which measures the probability of the consumer defaulting based on his or her credit history, within the next 12 months.
Of the 870,766 consumers who applied for a new credit facility last year, nearly nine out of 10 have never seen their personal credit report, CBS said.
“The credit report is an indication of a consumer’s financial health and is used by all lenders in Singapore to assess the risk involved in granting credit. With this initiative, we hope that more consumers will be motivated to monitor their credit file, and review the same credit data as their lenders,” said CBS Executive Director William Lim.
According to CBS statistics, consumers aged 21 to 29 are the most credit-hungry, making up 19 per cent of credit applicants in 2015. This is followed by the 30 to 34 (18 per cent), 35 to 39 (16 per cent) and 40 to 44 (14 per cent) age groups.
“As consumers below 35 years old make up more than a third of credit applicants, CBS’ initiative will empower young borrowers to take charge of their credit information and understand the benefits of building a good credit history for future credit applications,” Mr Lim said.
Consumers can log on to CBS’ website with their SingPass ID and password to obtain a free copy of their credit report within 30 days after their credit application has been approved or rejected. They can also visit the CBS office at SGX Centre 1 with the relevant documents.
Source : Channel NewsAsia – 21 Mar 2016