Credit score myths debunked: what banks really look for

Ever been turned down for a loan and had no idea why? Or assumed that because you have never borrowed a cent in your life, your financial reputation must be spotless? Chances are your credit score, or your misunderstanding of it, is doing more work in the background than you realise.

In this episode of Money Hacks, a podcast by The Business Times, Howie Lim is joined by Wong Sok Quan, head of consumer services at Credit Bureau Singapore (CBS), and Ayush Goyal, country manager Singapore at MoneyHero Group, to cut through the myths and give a straight account of how credit scoring actually works in Singapore and what you can do about it today.

Why listen

• Why your CBS credit score is not the only thing banks look at when they decide Income, employment status, bankruptcy records, litigation history and even how much you have deposited with the lender all come into play. Sok Quan explains what the full picture actually looks like.

• Why having no credit score is not the same as having a clean slate  If you have spent your adult life on debit cards and never taken a loan, lenders have nothing to assess you on. Ayush explains why a thin credit profile can work against you and what young Singaporeans should be doing about it right now.

• Why applying for multiple credit cards at the same time quietly damages your score Banks report to the bureau monthly, not quarterly. The implications of that are more significant than most people realise.

• What changes Credit Bureau Singapore is considering to its scoring methodology  From handling litigation records differently to addressing the trend of people applying for multiple cards within the same bank for rewards points, there are updates in the pipeline worth knowing about.

Your credit score is your financial reputation. This episode tells you exactly how to manage it. Watch now.

Money Hacks is the flagship personal finance podcast from The Business Times. Catch past episodes at bt.sg/podcasts. Have a burning question or episode idea? Email the team at btpodcasts@sph.com.sg.

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Written and hosted by: Howie Lim (howielim@sph.com.sg)

With Wong Sok Quan, head of consumer services, Credit Bureau Singapore and Ayush Goyal, country manager Singapore, MoneyHero Group

Edited by: Howie Lim & Claressa Monteiro

Produced by: Howie Lim & Chai Pei Chieh

Video production and editing: Studio +65

A podcast by BT Podcasts, The Business Times, SPH Media

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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisors for independent advice. 

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