Getting a loan can be a perfect option when you have an emergency or other needs such as a hospital bill.
However, is it worth getting one? Most financial companies and banks in Singapore check on your moneylender report before you can take out credit.
In this blog post, you will learn what MLCB is, its components, how to get it, and more about your credit score.
What Is The MLCB?
It is a central source of data showing your loans and repayment records with licensed money lenders (LMLs) in Singapore.
Its loan information report helps lenders understand your borrowing and repaying behaviours. As a result, they can make informed decisions when you approach them for loans.
On the other hand, the MLCB report helps you as a borrower manage your loans and financial state.
It allows you to use every coin you borrow appropriately and repay as you have agreed with the lenders. In return, you build a good relationship with LMLs.
The Ministry of Law (MinLaw) appointed Credit Bureau Singapore (CBS) to operate the MLCB starting from 1 Jul 2021. A credit bureau issues your moneylender report to banks, credit companies or financial institutions when they want to inquire about you.
How Do I Get My MLCB Report?
If you have never borrowed a loan in Singapore, you probably don’t know how you can access your moneylender report. However, don’t worry because the process is easy and convenient.
In Singapore, only two credit bureaus are allowed to have your report. These are Experian Credit Bureau Singapore (ECBS) and CBS. Therefore, you can contact them to know your creditworthiness.
You can also purchase a copy from the MLCB official website for $6.42, which you can pay via Mastercard, Visa or eNET. You can also visit its office in Singapore for direct purchase.
What Does A MLCB Report Include?
The moneylender report contains specific details such as:
The reports indicate basic personal information such as your full name and NRIC. However, it doesn’t reveal your telephone numbers and contact address.
This refers to your employment type and income. It helps to calculate your average monthly and annual income.
This section indicates all the loans you owe other licensed money lenders in Singapore. All the secured and unsecured loans that you have borrowed are reflected here.
It also shows the balance you have yet to repay. Usually, the report is updated in real-time to provide ‘true’ evidence of your borrowing status.
The loan information report from the Moneylenders Credit Bureau also reveals how you have been paying all your loans for the last 12 months.
This is crucial because it portrays your repayment behaviour to licensed money lenders in Singapore. If all your repayments are timely, you will likely get credit when you approach them.
Closed or Terminated Credit Accounts
This section reflects your closed or terminated accounts for the last three years from the reporting time.
The moneylender report will show if you have ever gone bankrupt in the last five years. However, if you repay your loans fully, this can be cancelled and immediately removed from your report.
You can opt to exclude yourself from a particular loan type like personal unsecured loans from licensed money lenders . This will reflect on the exclusion list.
Does Buying A Credit Report Affect Your Credit Score?
Purchasing your credit report from a credit bureau does not affect your credit score.
It is an inquiry that helps you to know your status as a borrower, and hence, it doesn’t hurt your score.
It is crucial to check on it frequently. This will ensure licensed money lenders get the correct information about your borrowing behaviour. You can access a free copy of your MLCB report from credit bureaus in Singapore every 12 months.
If you disagree with the report or find an error, you can write back to the credit bureau and inform them.
They will immediately communicate with the bank or financial company that provided the data. They will also put a notice on your credit report to indicate that your data is under investigation.
The Moneylenders Credit Bureau will eventually inform you of the way forward. If any amendments are made in the end, it will send your revised credit report to all financial institutions that have inquired about you for the last three months.
Therefore, do not go for years without checking on your credit report.
What Is A Licensed Money Lender?
Licensed money lenders in Singapore are banks or financial companies permitted by the law to give out loans to borrowers.
These days, many unlicensed money lenders are roaming around through scam websites that look like legit money lenders, and many borrowers have fallen prey to them.
Before you borrow a loan from any money lender, it is crucial to verify it. You can check if lender is licensed from the list on Singapore’s MinLaw website.
Firstly, if a money lender calls or texts you, check its phone number against the one listed on the website. The lender should also have a physical address. If the two are missing, you could be dealing with an illegal money lender.
It is important to note that licensed money lenders are not allowed to advertise their loan services via text messages, social media platforms or phone calls.
Instead, they must meet the borrower in person at its office premises. This helps to verify the borrower’s identity face-to-face before signing a deal.
Other lender-related red flags include:
- If the money lender asks you for your Singpass user ID or password
- If they grant you a loan without providing a copy of the Note of Contract for the loan
- If they don’t explain all the loan terms and conditions
- If they retain your personal documents, such as your NRIC, passport or work permit
- If they hold part of your principal loan amount
If you find a suspicious money lender when looking for credit, you can report them to the police hotline at 1800-255-000.
What Loans Are Not Reported To The Credit Bureau?
You can get a mortgage, personal, student or auto loan, a Buy Now, Pay Later (BNPL) loan, and a credit card. But do all these loan types appear on your moneylender report?
The report shows your mortgages, personal loans, credit cards or lines of credit, student loans and auto loans.
However, your loan could also be missing from your credit report. In such a case, don’t panic because it happens.
Even though most licensed money lenders in Singapore report to both credit bureaus, some may report to only one.
Besides, credit bureaus update your MLCB report depending on the information they receive from your lenders.
Therefore, if your money lenders did not notify both credit bureaus in Singapore, your loan may not be reflected.
On the other hand, if you took out an auto car loan, it may not have been open for long enough and hence, could be missing from your report.
For example, if you opened a car loan within the last 30 to 60 days, your money lender will probably not have notified credit bureaus. You have to wait for them to update the information.
Once you realise that a credit you borrowed is not on your moneylender report, it is important to follow up.
Reach out to your lender and request that the report be updated. This can help you build your credit history and improve your credit bureau score when you make timely payments.
How Do I Get My Credit Score?
Your credit score affects your eligibility for a loan in Singapore.
Hence, you need to know how to check credit score in Singapore before sourcing a loan. You can have a good or bad score.
But where do you get this credit score? All you need is to get your moneylender report from CBS. Your report will reflect your credit score.
Several factors lower your credit rating, including late interest payments.
What Is A Good Credit Score?
Firstly, a credit score is a four-digit number that shows your past loan payment history and ranges from 1,000 to 2,000. It tells how good or bad you are with credit repayment.
So what is a good credit score in Singapore? If your points are close to 2,000, that is a good score, but if they are close to 1,000, that is a bad score.
Any licensed money lender would want to give its money to a borrower with a good credit score. It allows the lender to believe that you will repay the loan without defaulting.
Licensed lenders also use it to determine the interest they will charge. This means with a good rating, you can get a fair interest rate without providing collateral.
These days, not only money lenders are interested in your credit score. You will find employers inquiring about it when recruiting potential employees.
They understand that trustworthy employees are likely to settle their debts on time. Other industries that may consider your credit score are phone contract and insurance sectors.
In a nutshell, a good credit score can save you in many circumstances.
You can improve your ratings by:
Paying Your Debts On Time
Any time you take out a loan from a licensed money lender, ensure that you make your payments on time.
Keep track of your payment due dates and stick to them. Late payments will significantly lower your credit ratings.
In case of repayment challenges, do not let them go beyond 30 days because your lender will notify the credit bureaus.
Avoid Multiple Loans From Different Lenders
Sometimes you may find yourself with debts from different lenders. Managing their monthly interest can be challenging, considering you have other bills to settle.
You can consolidate these debts into one to avoid the risk of late payments and other penalties. It also helps you to find an alternative loan with a lower interest.
Get An Active Credit Card
You can apply for a credit card if you don’t have an active one. It helps you improve your rating when you make prompt payments.
Getting your moneylender report is key, especially when you want to take out credit. It helps you approach the right licensed money lenders and borrow what you can repay.
On the other hand, it also helps lenders make informed decisions before they give out loans.
You can get your MLCB report from CBS or ECBS. CBS sells it online at $6.42, or you can visit their offices for direct purchase.
The report also helps you to know your credit score. This rating is important because licensed money lenders use it to determine your creditworthiness.
To understand more about your moneylender report, get in touch with licensed money lender U Credit. We will help you access a copy of the moneylender report so you can know your status as a borrower.