365 Credit Solutions Pte Ltd is a licensed moneylender (License No. 17/2024) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.​

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Can You Apply for a Loan in Singapore With a Low Credit Score?

How to Apply for a Low With Credit Score

Virtually every financing you’ll see in the country is a credit loan in Singapore. Banks and financial institutions require borrowers to have acceptable credit scores to have loan applications approved. Credit Bureau Singapore oversees the algorithms and other systems in determining the actual credit score and rating of every Singaporean.

If you have a poor credit score, it will be difficult to have loan application approval with banks and financial institutions. Licensed money lenders are the best alternative from banks, but they offer fewer products if you compare their listings with profit-oriented banks.

In this short article, you’ll learn about bad credit and its causes, poor credit improvement methods, and applying for a loan with bad credit during an emergency.

What Do Singaporean Banks Consider a Bad Credit Score?

Borrowers who have bad credit scores have a HH rating with a score of 1,000 – 1,723.

It takes a borrower with poor financial management skills to have bad credit scores. However, business owners who have recently declared bankruptcy also have next to junk credit scores, meaning they cannot apply for new financing until they re-establish their rating.

Singaporean banks quickly disregard loan applications with poor credit scores. Credit Bureau Singapore and banks believe that junk credit borrowers have the highest chance of defaulting or not paying for a loan completely. Because a borrower with poor credit can have an established income source, their likelihood to fail at their loans is partially true.

However, to streamline a credit review system capable of screening hundreds of thousands of applicants at the same time, credit scores have become necessary to get financial solutions in Singapore. In this light, a licensed moneylender in Singapore offers better terms and much more flexible payment options for borrowers because of its separate network that does not depend on credit scores.

Why Should You Avoid Having Bad Credit Scores?

While banks and financial institutions will often reject loan applications of low-credit borrowers, they’ll often ask for collateral. In doing so, you’ll lose an equity or the entire collateral if you fail to pay your loan. If you have bad credit, your unsecured loan interest rate will drastically skyrocket. For you to complete paying for it completely will seem impossible.

It’s not enough to maintain a borrower’s credit scores at neutral because banks like working with borrowers who understand enormous risks but can pay their financing in full. Avoid bad credit to make sure you won’t need to face the following obstacles towards better financing solutions.

High Interest Rate

Even good credit borrowers face challenges when dealing with high interest rate loans and financing. Unfortunately, if you have FF to HH credit rating, you have no chance for a low interest loan. Instead, banks may outright reject your application upon first sight.

On the other hand, banks might ask you to provide collateral instead. For example, by offering part of your property in equity, they may agree to approve your loan or lower your interest rates. However, keep in mind that they’ll claim the equity or your entire property, depending on which you staked, if you default on your loan.

Bank Mistrust Locks Away Better Loan Options

Lower interest rates plus access to higher loan amount loans in Singapore await most high credit score borrowers because banks see them as an opportunity for growth and profit. Otherwise, the bank’s mistrust of you as a borrower leaves you with their basic financial products to choose from. Until your credit scores rise, you won’t have any better loan options available, even if it’s a business loan offering banks a higher earning opportunity.

Increased Loan Rejection Possibility

Credit scores at DD and lower have increased chances of loan rejection. Most HH-credit borrowers will find their loan applications rejected. However, those with near-junk and junk credit scores have a slim chance of getting loan application approval. By improving your credit scores, you will have loan applications approval almost always.

On the other hand, a licensed money lender in Singapore, such as 365 Credit Pte Ltd, looks at the regular income and financial stability of loan applicants. In doing so, even low credit score borrowers, both citizens or permanent residents or foreigners, can have access to personal loans and payday loans, which are helpful during dire situations.

Specific Career Limitations

If you’re planning a career in finance, business, law, or other ventures involving management and organization, your application can receive rejection from would-be employers. Many Singaporean employers believe that the core values of these occupations are hard-wired in the daily living activities of candidates. By this logic, it makes sense that Singaporeans with poor credit scores will face rejection.

On the other hand, credit scores can play minor roles in entry-level occupations because it doesn’t require any high-level management skills. However, some employers may choose to increase its role because it reflects an individual’s skill in handling personal responsibility, which is critical for all occupations in Singapore and the rest of the world.

How Does Credit Bureau Singapore Calculate My Credit Score?

In the old days of banking, credit scores are virtually non-existent. Instead, banks looked at your income and capacity to pay. If you’ve failed to pay your loan once or twice, they will reject your loan applications but still give you a chance with entry-level products to recover their confidence. Truthfully, modern credit score systems still implement these practices but with an objective system.

Programming algorithms and data science and technology gave in banking and financial technologies an enormous leap in the last few years. Credit Bureau Singapore uses these algorithms, allowing the real-time reflection and compilation of every Singaporean borrower’s loan activities and records. CBS hasn’t made the algorithm method public, but its system highly likely uses advanced probability and statistical mathematics.

Once the algorithm accomplishes its task, it segregates each borrower according to their recent financial performance in different ratings with corresponding scores. Both the borrower and lender requesting a “hard inquiry” or “hard pull” of a borrower’s details will receive data containing the credit rating, score, and summary for their quick reference.

Rating Score Loan Defaulting Possibility
AA 1911-200 < 0.27%
BB 1844-1910 0.27% – 0.67%
CC 1825-1843 0.67% – 0.88%
DD 1813-1824 0.88% – 1.03%
EE 1782-1812 1.03% – 1.58%
FF 1755-1781 1.58% – 2.28%
GG 1724-1754 2.28% – 3.48%
HH 1000-1723 > 3.48%

Do I Currently Have a Bad Credit Score?

The easy answer to this question is to inquire with CBS about your credit rating. In Singapore, you can get a free credit report every 12 months, and if you claim the report within 30 days of release.

However, if you can’t wait that long, you can assume to have bad credit scores if you failed to pay your loan for more than two months. While it won’t affect your contract-locked interest rates and monthly payments, you won’t be as lucky to get the same rates and payments (if they’re relatively low when you compare them with current market figures) in the future.

Here are a few other details that can drive your credit score straight to junk.

Too Many Loans Simultaneously

If you’ve taken out more than two loans and continue to pay for them, you’ll get a poor credit rating from CBS.

Numerous Late Payments

Like simultaneous loans, simultaneous and frequent late payments for one or more loans leave you in poor graces with banks.

Troubling Credit History

You may be paying well for your current loan, but your poor loan resolution history, such as a bankruptcy or frequent defaults, play a big role with credit history.

Multiple Credit Card and Loan Applications

Applying for multiple loans and credit lines will induce numerous CBS hard inquiries, which directly affect your credit score.

Currently Facing Bankruptcy or Legal Issues

Bankruptcy symbolizes poor financial management. On the other hand, it’s expensive to go through any form of Singapore litigation.

How Can You Improve Your Credit Scores?

Truthfully, no Singaporean struggles to enhance their credit scores in the next few years. You can manage your finances well by doing the following.

Repay Loans on Time

Proper loan payment schedules reduce your defaulting likelihood and give you ample budget spacing.

Avoid Multiple Loan Applications

Multiple loans will cause your credit scores to turn neutral and head towards junk if you add any more. Once you mismanage them, your credit score will go lower than you expected.

Reduce Revolving Credit Lines

Like loans, lines of credit, such as credit cards and revolving credit from banks or licensed money lenders, are easy to mishandle. Limit your use of them.

Stick To Your Budget

If you’ve created a feasible budget for your finances, make sure you stick by it. Chances are you’ll minimize all possibility of deviation.

Using Sustainable Financial Practices

Lastly, don’t use your existing line of credit or credit cards to buy your necessities. Save money for things you want, and use cash for your needs.

Licensed Moneylenders: An Enormous Help For Low-Credit Score Singaporeans

You can always count on licensed money lending institutions, such as 365 Credit Solutions, to approve the loan applications of low credit score individuals. Here are their eligibility and requirements. All applicants must be 21 yearsof age and earning S $1,500 for Singaporeans and S $2,000 for foreign applicants.


Here are the basic requirements for personal and business loans.


  • Identity card / NRIC
  • Proof of residence (utility bill, a letter addressed to you, and/or tenancy agreement)
  • Proof of employment (certificate of employment or 3 months recent payslip)


  • Passport
  • Work Permit / S-Pass / Employment Pass
  • Proof of residence (utility bill or tenancy agreement)
  • Proof of employment (certificate of employment or 3 months recent payslip)
  • Proof of income (bank or account statement)

For business loan applications, you’ll need to submit the following:

  • All Directors / Partners NRIC
  • Recent information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA)
  • Recent Income tax assessment notice (both personal & from the company)
  • Recent financial statement
  • Recent invoices or business contracts
  • Recent utility bills under the company name
  • Recent 6-month bank statements
  • List of assets owned by the company, directors & partners (if any)
  • Office/Shop Tenancy Agreement (if any)

Steps to Apply

  1. Visit your licensed lender’s website. Make sure to check their lending license number to ensure you’re working with professionals.
  2. Review your eligibility and use their online faculties (if any) to submit your documents
  3. Wait for loan approval or confirmation message.
  4. Call or message them to schedule your loan amount reception day and time.

You Will Always Have Financial Help Even if You Have Poor Credit

If you intend to buy a new house or HDB flat, you’ll want to have excellent credit scores to use the financial services banks offer. On the other hand, if you need emergency cash immediately, you can always count on licensed moneylenders for instant cash loans. 365 Credit Solutions is one of the best and longest personal loan providers in the country. Contact us today to learn more about our products and services.

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