THE CONSUMER CREDIT BUREAU: HOW IT AFFECTS YOU

In this article, MoneySENSE explains what a consumer credit bureau is and how it impacts you.  We also provide some tips on how you can maintain a good credit report.

What is a credit report and who issues the report?

A credit report contains records of an individual's credit payment history.  It is released under legally permitted conditions to members of the credit bureau when they make enquiries about an individual.  It includes information such as:

• Basic personal profile data (excluding contact addresses and telephone numbers)
• Records of all credit checks made on the consumer
• Credit repayment trend of the past 12 months 
• Default records
• Bankruptcy records
• Litigation records

Only banks, finance companies and credit card companies recognized by the Monetary Authority of Singapore as providing credit to consumers are authorized to be members of the bureau.  Only information on the credit facilities extended to you and your repayment history is provided in the credit report.  It does not include information on your deposits or net worth.

Who provides the information in the credit report and why is it important to have a credit bureau?

Credit Bureau (Singapore) Pte Ltd issues the credit reports.  The information in the credit report is provided by members of the Credit Bureau.  The Credit Bureau also obtains information from publicly available sources such as Court writ of summons and bankruptcy data, as well as default data from other industries.

As a centralized repository of credit information, the Credit Bureau contains information to assist its members in their credit risk assessment of borrowers.  With the Bureau, banks, finance companies and credit card companies can make better lending decisions and responsible consumers can expect faster and more competitive services from them. 

Who can see my credit information?

Only members of the Credit Bureau are permitted to access the information from the bureau.  The access to such information is governed by a Code of Conduct, which lays down strict privacy principles that all members must abide by.  Credit decisions are made by these banks, finance companies and credit card companies.  The Credit Bureau does not grant or deny credit.

Is the credit report important to me? 

Your credit report gives a snapshot of your credit repayment capability.  The credit report will enable banks, finance companies and credit card companies to make better lending decisions when you apply for credit such as home mortgages, personal loans, car loans and credit cards.

It is therefore important that you maintain a good repayment record.  Non-repayment(s) or overdue repayment(s) will be reflected in your credit report and could adversely affect you when you apply for a new loan.
 
Approach the Credit Bureau for a copy of your credit report, so you are aware of the information contained in your report. 
 
How do I obtain a copy of my credit report?

A copy of your credit report can be obtained from the Credit Bureau on request.  You can obtain it free of charge when you have made a credit application and a member of the Credit Bureau has made a check on you within 30 days of your application. Otherwise, a fee of $5 plus GST is payable for each report.

You must bring your NRIC/FIN Card/Passport to the Credit Bureau office, for them to authenticate you, and fill in an application form. Your credit report will be ready for collection in a few minutes.

Credit Bureau (Singapore) will also be exploring options to make credit reports more accessible to the consumer.

What should I do if I disagree with the information in my credit report?

If you spot an error or disagree with some information in your credit report, you should write to the Credit Bureau with your clarification.  The Credit Bureau will:

•  Consult with the member of the Credit Bureau that provided the data;
•  Post a notice in your credit file with the Credit Bureau that the credit data is being disputed and is under investigation; and
•  Inform you of the progress and outcome of their investigation.

If any amendment is made to your credit report, the revised report will be sent to all Credit Bureau members who have made enquiries on you in the past three months.

For more information on the Credit Bureau, visit their website at www.creditbureau.com.sg or contact them at:

Credit Bureau (Singapore) Pte Ltd
4 Shenton Way #17-02 SGX Centre 2 Singapore 068807
Email: consumer_services@creditbureau.com.sg
Fax: (65) 6318 7966
Telephone: (65) 6565 6363

TIPS ON HOW TO MAINTAIN A GOOD CREDIT REPORT

1. Always keep track of the payment dates for your credit facilities and remember to pay before the due date.

2. Avoid multiple sources of credit, if you can help it.  It is easier for you to keep track of your repayments when you have fewer credit facilities. 

3. As far as possible, pay all your monthly outstanding credit in full.

4. If you are unable to meet the payment deadlines, let your financial institution know and explain the reasons to them. 

This article was provided by The Association of Banks in Singapore (ABS) and the Credit Bureau (Singapore) Pte Ltd as part of the MoneySENSE national financial education programme.  The MoneySENSE programme brings together industry and public sector initiatives to enhance the basic financial literacy of consumers. To find out more about money management and other personal finance topics, visit the MoneySENSE website at www.moneysense.gov.sg.