1 Fullerton Credit Pte Ltd is a licensed moneylender (License No. 100/2023) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

5 Tips on Building Credit Score in Singapore

Hands Showing Excellent Credit Score

While it isn’t that complicated, the use of credit cards apparently is more than just spending a lot, purchasing goods, borrowing cash, and paying loans. Like many other things, it also has its pros and cons. And for many reasons, cardholders may still be unaware and are confused about using theirs.

For those who haven’t gone through the guidelines, you may have wondered what credit scores are and why it is necessary. It is the number between 300 and 850, denoting a consumer’s creditworthiness, which was made by FICO and is used by financial institutions.

This is used by moneylending companies to help them determine how likely it is they will be repaid on time if they grant a borrower of credit cards or loans. It is based on your credit history, which includes the number of open accounts, total levels of debt, repayment history, and many other factors.

How Is a Credit Score Calculated?

There are three major credit bureaus that keep track, report and save consumers’ credit histories. While there may be discrepancies in the data gathered by the agencies, there are many factors being evaluated when computing a credit score Singapore.

This can be your payment history, revolving credit, debt, or the total amount you owed with your account, the duration of your credit history, types of account, as well as how often you apply for new credit.

  • Used credit vs. available credit. A factor that most lenders and creditors are looking at is how much of your available credit- which is the credit limit, you are using. Lenders and creditors ought to see that you are responsibly able to use credit and pay it off, regularly. If you have a mix of credit accounts that are at their limit, that may affect good credit score.
  • Used credit vs. available credit. A factor that most lenders and creditors are looking at is how much of your available credit- which is the credit limit, you are using. Lenders and creditors ought to see that you are responsibly able to use credit and pay it off, regularly. If you have a mix of credit accounts that are at their limit, that may affect credit scores.
  • The type of credit used. Credit score calculations may also consider the different types of credit accounts you have, including revolving debt (such as credit cards) and instalment loans, this includes mortgages, personal loans, home equity loans, car loans and study loans.) Know that institutions will look into your ability to manage multiple accounts of different types and credit scoring models may reflect this.
  • Duration of credit history. This part of your credit history details how long different credit accounts have been active. Credit score calculations may consider both how long your oldest and most recent accounts have been open. Here, it will be viewed that you have a history of responsibly paying off your credit accounts.
  • New credit. Credit score calculations may also consider how many new credit accounts you have opened recently. New accounts may impact the length of your credit history.
  • Hard inquiries. This happens when lenders check your credit in response to a credit application. A large number of hard inquiries can impact your credit score. However, if you are shopping for a new auto or mortgage loan or a new utility provider, the multiple inquiries are generally counted as one inquiry for a given period of time.

That duration can depend on the credit scoring model, but it’s typically from 14 to 45 days. Calculations do not consider requests a creditor has made for your credit report for a pre approved credit offer, or periodic reviews of your credit report by lenders and creditors you have an existing account with.

How to Improve Your Credit Score

  1. Pay all your dues on time

This always serves as a huge factor. Keep in mind that lending companies check your credit report and request a credit score for you. They are keen on seeing a responsible cardholder because past payment performance is considered a good predictor of future performance.

  1. Use your credit cards wisely

The two most important factors in your FICO credit score are your payment history and your credit utilization. It’s encouraged to use a secured credit card regularly and make your returns promptly. With this, you can establish a credit history through building a payment history. Keeping extra credit cards open, assuming it does not cost you money in annual fees, is a great option also. Moreover, always remember the need of checking your credit reports from credit bureau Singapore for any dispute and inaccuracies.

  1. Limit the number of lenders that you borrow from

This approach allows you to become keener of your transactions and credit. It is also beneficial for securing a plan that is solely ideal for your financial worries. Furthermore, it’s not urged to hold six or seven credit cards or credit lines. You are likely to get confused by the various billing cycles and miss payments.

  1. Keep loan application inquiries to a minimum

As much as possible, avoid having multiple loan inquiries. This will immediately affect your score as well as your reputation as you get tagged as credit hungry. It’s best to consider using comparison tools to weigh whichever plan fits your needs best.

  1. Meet short-term loan repayments to repair damaged credit

Should you have a bad credit grade, the most ideal way to repair it is by settling in full on any short-term or small loans. This will go a long way over time to repairing your damaged credit as the bureau sees you are making repayments on time and in full.

Meanwhile, if you are looking for personal loans with low-interest rates from 1 to 4% only, you can check 1 Fullerton Credit. With its flexible payment terms, unsecured loans with no collateral and pledging of assets, you can enjoy financing your needs with ease.

1 Fullerton Credit is one of the best legal moneylenders located in Singapore, which provides a wide selection of loan options- from personal loan, foreigner loan, business loan, monthly loan and payday loan.

How Long Does it Take to Remedy a Low or Bad Score?

Repairing credit score differs depending on your situation and record. If you have had negative information on your credit reports, like overdue payments, a public record item such as bankruptcy, or multiple inquiries, we encourage you to pay your bills and wait.

It’s revealed the length of time it takes to remedy a low credit history after a negative change varies on the reasons behind the change. Most negative differences in credit scores are because of the addition of a negative element to your credit reports- could be a delinquency or collection account.

On the other hand, it is still within your ability to clean up your credit history, as reports from the Credit Bureau Singapore tells your track record on the promptness of payment for over a 12-month period. This allows you to remove your credit record, should you make it a priority to pay your credit card and loan instalments on time.

Other tips to up your credit score include:

  • Not applying for too many credit cards to avoid overspending.
  • Cancelling cards that you don’t use to ensure you can control all your future expenses and purchases.
  • Paying off credit card bills promptly and in full. This also guarantees borrowers to avoid living in debt.
  • Avoid applying for too many loans in a short period of time as this can also be a contributing factor for lenders not allowing you to borrow.


As expected, improving your credit scores won’t be that easy as hoped. It may definitely take a lot of time and effort. However, the answer is to always consider getting your credit score.

Always remember that to start improving your credit by checking it firsthand and analysing the factors that may have influenced your history. Focusing on these areas will help you understand the specific changes you can do to your credit record, and fix your rating as fast as you can.

Never refuse to seek assistance from experts as it will not solely be beneficial to your current situation by even your future finances. Keep in mind that your credit scores could immediately reflect where you will be at many years from now.

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