Last updated on: March 29, 2025
How to Maintain a High Credit Score in Singapore?
If you’re living and working in Singapore, especially as a foreigner on a work pass like me, having a strong credit score can quietly unlock many opportunities. From higher credit limits, smoother loan approvals, and better financial security during emergencies. But here’s the catch. Even if you’ve always paid your credit card bills on time, your score isn’t only about payment history. I recently took time to study how the credit system in Singapore really works. In this article, I’ll share what I learned, practical steps you can take to maintain (or improve) your credit score, and why it matters more than we think.
TL;DR
✅ Use a Credit Card Smartly
Having no credit means no score. Use a credit card regularly and pay it in full every month to build a strong repayment history.📉 Keep Your Credit Usage Low
Try not to use more than 30% of your total credit limit. High utilisation signals financial stress, even if you pay on time.🚫 Avoid Too Many Applications
Each new credit application creates a “hard enquiry” — too many in a short time can pull your score down.📄 Check Your Credit Report
Monitor your credit health regularly to spot errors or issues early. You can get your report at www.creditbureau.com.sg.💰 Cost is SGD $8.00 + GST.
What is a Credit Score in Singapore?
Your credit score in Singapore is a four-digit number ranging from 1000 to 2000, issued by Credit Bureau Singapore (CBS). This score reflects how likely you are to repay your debts based on your credit history. The higher your score, the lower the risk, and the more confidently banks will offer you credit.
CBS also assigns a risk grade along with the score from AA (lowest risk) to HH (highest risk). For instance, a score above 1911 typically falls into the safer AA category, while anything below 1723 may be seen as a higher risk.
Your credit score still matters even if you don’t plan to take out a loan anytime soon. It can impact your credit card limit, loan approvals, and even how quickly banks process your applications.
Why Does it Matter?
- Helps you get better interest rates on loans.
- Increases your chances of getting loan or mortgage approvals.
- Gives you higher credit card limits
- Offers you financial credibility when you need urgent funds or want to apply for big-ticket items.
Quick Note
If you don’t have any credit cards or loans in Singapore, you may not have a credit score at all. That’s because your score is calculated based on your credit activity. While it might seem safer to avoid credit, building a good credit history is important. Using a credit card responsibly is one of the simplest ways to do that.
As someone who has lived here for years on a work pass, I’ve seen how important this invisible score is, even if you’re financially disciplined.
Common Mistakes That Can Hurt Your Score
Using too much of your credit limit
- If you’re constantly using a large chunk of your available credit (even if you pay it off), it signals high dependency on credit. Keep your usage below 30% of your limit.
Applying for too many credit cards or loans in a short time
- Each application triggers a credit enquiry. Too many enquiries can make it look like you’re in urgent need of credit, which may raise red flags for banks.
Only paying the minimum amount due.
- Carrying forward balances even while avoiding late fees still affects your utilisation and may indicate cash flow issues.
Closing your oldest credit card
- A longer credit history works in your favour. Cancelling older cards reduces the average age of your credit accounts, which can lower your score.
Having too many unsecured credit facilities
- While having a few credit cards or a personal loan is fine, overloading on unsecured credit (especially without sufficient income) could signal higher risk.
How to Maintain (or Improve) a High Credit Score
Pay in Full and On Time
- Always pay your entire statement balance by the due date. Not just the minimum.
Keep Credit Utilization Low
- Try to use less than 30% of your total available credit. If your limit is $20,000, keep monthly usage under $6,000.
Limit New Credit Applications
- Each application creates a “credit enquiry” that slightly reduces your score. Space them out and only apply when necessary.
Maintain Old Accounts
- The longer your credit history, the better. Keep your oldest card open even if you don’t use it often.
Diversify, But Don’t Overdo
- A mix of credit types. Credit cards, personal loans, etc., can be healthy. But don’t go overboard chasing every promotion.
Review Your Credit Report Regularly
- You can request your CBS credit report to track your current score and spot any issues early. Look out for unfamiliar loans or mistakes.
How to Check Your Credit Score in Singapore
- Visit Credit Bureau Singapore and follow the steps below
- The cost is SG $8 + GST. You can pay via credit or debit card.
Steps
FAQs:
Do I need to use a credit card to build a credit score in Singapore?
- Yes. If you don’t have any active credit facilities (like a credit card or loan), you may not have a credit score at all. Using a credit card responsibly helps build your score over time.
Will checking my own credit report affect my credit score?
- No. Self-checks are considered soft enquiries and do not impact your score in any way. It’s actually a smart habit to monitor your credit regularly.
That’s it for today, guys. Thank You for Reading! I hope you found this article informative and useful.
If you think it could benefit others, please share it on your social media networks with friends and family who might also appreciate it.
If you find the article useful, please rate it and leave a comment. It will motivate me to devote more time to writing.
If you’d like to support the ongoing efforts to provide quality content, consider contributing via PayNow. Your support helps keep this resource thriving and improving!
