Not only in Singapore, everywhere in every country there are some rules which are directed by banks for cases regarding the loan. Permission for starting a personal loan needs to stop many steps to verify. Among all the steps, succeeding in the credit score step is very crucial. Because although your salary statement and other conditions are fine to let you qualify for your loan, the ‘ Credit Score’ may create problems. Here in this article, you’ll get to know how you can get personal loan in Singapore even if you have a bad credit score record.

What is a Credit Score?

For those who have heard this for the first time, here is the easiest definition for you. In simple words, the credit score will define your track record of repaying the loan principal with interest to the bank which is being claimed by you. While applying for a personal loan, the banks check for three main facts. Those are your loan application, your credit history, and performance record of the past loans. No need to mention that the score is the impact of how long you took or took to repay past loans. The score margin can be fixed by the banks themselves. Higher the score will create a good impression and lower the credit score will create a bad impression.

Everyone’s financial condition is not the same. So, all the time, checking the credit scores can’t highlight one’s true nature. This is why sometimes when people need personal loans most, the bad credit score forces them to step back. Here you are given the best ideas on how to apply for a personal loan though you have a bad credit score.

When we go to take any loan from the bank, we need to show them our credit score also. Many of the banks these days do the same by themselves too. Whatever be the method to check it, you should keep your credit score always up to a level or range so that when you apply for the loan, you don’t have to find any issues in that, however sometimes due to some unavoidable circumstances we face the issues of bad credit score. Today in this article, we will tell you how to improve the bad credit score if you have one.

Apply for the credit score yourself

If you don’t want your personal loan application to be rejected, you should first apply at CIBIL to check what is the condition of your credit score. For this purpose, you need to go on the website of CIBIL. Therefore, you have to click on the link to check your credit score. For this purpose, they generally cost you some low amount of money first. Once you deposit that small money and some of your legal documents scanned copies, within three days they give you your credit score.

Check what causing the negative points

From that score you can see what things are causing more problems for taking a loan and before applying in any bank for a loan, you can improve it. In that list, you will mainly find the issues like you have taken some loans from any bank but did not complete the full repayment. It may also happen that you just have taken the loan but didn’t pay even a single instalment of that. Sometimes it may also happen that you have paid the loans but the verification from the bank site could not be completed. In such cases, you should repay the left instalment or the complete instalment of your loan with full interest. If the data shown on the CIBIL score was just by mistake from the bank side, you should complain about this to the CIBIL and it will verify it from the concerned bank and update. For this correction, you need not pay anything.

Spend under budget

Some other reasons for the fewer credit points on this score may be due to too many expenses done by you beyond the limit of your credit cards. This expense may be either purchasing something with full cost or on EMI. Generally, the limit of the EMI from the bank sides is kept within 20 to 25 per cent of monthly or annual salary. Now if you are paying EMI with more than this amount, you may be marked by the bank issuing the credit cards and from there you will also lose some credit points. So it’s a very obvious thing that to improve your credit score, you should stop spending too much beyond your credit limit.

Don’t apply for too many loans

One more very important reason for lower credit points is applying for too many loans. When we apply for too many loans, each bank giving loans inquires our status just like the bank for which you are going to apply at present. The greater number of loans you apply for, the more your credits score gets down. So here you should also check that you should apply for the loans only when you need them and the repayment of the loans should also not exceed 25% of your current salary.

Number of credit cards

It has also been seen that some people take more than two or three credit cards from different banks. When they take credit cards, they don’t know what negative points they may add unknowingly in their credit score as the greater number of credit cards you apply or own, the lesser credit scores you will have. Therefore, from now on, you should stop getting more number of credit cards and if possible, close some of your credit cards which you don’t use much and which are not much required.

If you apply the above methods, definitely you will improve your credit scores and you would be able to apply for short term loan Singapore. But here one thing you have to notice. The update in the changing score takes time, so after doing all the above things you need to show patience.