When we are talking about Credit Cards, we have to understand Credit Score as well.
What is Credit Score
A credit score is a numerical expression based on a level analysis of a person’s credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureaus.
The credit score provided by Credit Bureau Singapore was from 1000 to 2000, while a higher score means a better credit records.
What is Credit Report used for
The credit providers (e.g. Banks) will use your credit report as a reference to make faster and more objective lending decisions.
Based on CBS, “The credit report also helps credit providers to make faster and more objective lending decisions. By providing credit data to its members (credit providers) under authorised conditions, CBS helps them to determine whether or not the person applying for credit is a good credit risk. In doing this, lenders can make better lending decisions quickly and objectively.”
How to get Credit Report
Here is a sample provided by CBS, you may click here to check.
10 Steps To Improve My Credit Reputation
CBS provided 10 steps to improve the credit reputation:
1. Pay your bills on time As far as possible, strive to pay up in full and on time.
2. Pay down your debts and consider charging less
3. Limit the number of credit cards you own
4. Cancel any unused cards
5. Stay out of bankruptcy if you can
6. Don’t be afraid of credit counselling
7. Get your credit report
8. Know the differences between Debit Card and Credit Card
9. Don’t close accounts if you still have debt remaining on them
10. Don’t apply for lots of credit at once