What A Moneylenders Credit Bureau (MLCB) Loan Information Report Means

Finance,

If you have ever taken out a loan from a reputable licensed money lender, you might have found that the maximum amount of money you can borrow may have been raised or lowered. 

The rationale is that lenders will also consider your credit record and associated credit score in addition to your maximum borrowing capacity based on your monthly income.

The Moneylenders Credit Bureau (MLCB) is the source of this information. However, unlike the report from Credit Bureau Singapore (CBS), this moneylender report is only restricted to MLCB. 

A MLCB report is typically compiled using data that details all loans and repayments that have ever been made with a licensed money lender in Singapore.

What Is The MLCB?

A borrower’s MLCB report might be a deciding factor in whether or not a licensed money lender grants the borrower a loan. 

Money lenders could consider this information if you’re seeking a more significant loan amount with a more extended payback period.

The Moneylenders Credit Bureau is a data storage repository of information on borrowers’ loans and regulated money lender repayments. 

When evaluating loan applications from potential borrowers, the moneylender report helps licensed money lenders in Singapore to make judgments that are better informed as a result.

In addition, the MLCB report helps borrowers better manage their debt obligations and overall financial situation. 

However, the MLCB does not make lending decisions on behalf of lenders, nor does it collect information on borrowers’ lines of credit or bank deposits.

In Jul 2021, Ministry of Law (MinLaw) selected CBS to take over operations of the MLCB under the Moneylenders Act and make it its primary focus for three years. 

The MLCB provides all licensed money lenders access to a borrower’s creditworthiness information. 

This is done to prevent those who are already in debt from accumulating further debt that might be difficult for them to repay.

It is important to remember that the MLCB did not previously possess this data. 

DP Information Group creates and develops MLCB. As a direct consequence of this, the group is tasked with overseeing the day-to-day operations of the MLCB.

How Can You Get Your MLCB Report?

All licensed Singapore money lenders will notify the MLCB of their borrowers’ loan status. A moneylender report may then be available for each borrower, including details such as:

  • Details on any current loans held with any regulated money lenders at any given moment
  • The kind of loan, as well as its terms
  • The entire amount of principal still due
  • The complete amount that is due, including any applicable interest
  • All of the borrower’s active loans at present
  • The current status of each loan’s repayment

Borrowers can better monitor and control their financial obligations and debts by utilising their credit reports. 

Licensed money lenders can review a borrower’s credit record before issuing a new loan. It allows the lender to evaluate the borrower’s credit risk more accurately.

It allows them to refuse loans to borrowers who have an excessive debt load relative to their income.

In turn, this may help licensed money lenders cut their probability of default and operations costs.

Licensed money lenders may also use credit reports to keep tabs on borrowers with current loan contracts. 

This monitoring can include checking whether the consumers have taken out any additional loans after signing the original ones.

A licensed moneylender will pay $0.50 for one credit report, while borrowers would pay $1 for each piece of information. 

The Ministry of Law and Registry of Moneylenders will employ MLCB to monitor borrowing and lending.

As a borrower, you should prioritise going through your credit report at least once per year. 

It is a fantastic way to protect yourself from identity theft. You can also discover discrepancies in your credit rating that have the potential to lower it. 

Similar to the moneylender report, the credit report details all outstanding loan balances and credit card commitments maintained with financial institutions such as banks.

When you apply for a loan with a licensed money lender, the lender will get a report about you from the MLCB. Licensed money lenders will also do a credit check if you have an outstanding loan with them.

These credit reports are yours to access whenever you want. All you have to do is pay a small price. 

You may check with MLCB if you want to know how a licensed money lender views your creditworthiness. 

You may visit the MLCB website, the MLCB office, or the Credit Counselling Singapore office to buy the report.
 

What Does An MLCB Report Include?

The report will contain some personally identifiable information about you. This includes your name, NRIC, and, if you’re a business owner, your company’s Unique Entity Number (UEN).

In addition, the credit type you took out, the remaining balance amount, and the total amount due with any licensed lender in Singapore will all be included in the moneylender report from the MLCB.

In addition, the MLCB report will include your payment details, which include your current obligations owed to licensed money lenders and the amount of time you have left to repay each of those bills. 

Your application for a loan might be accepted or declined by a money lender, depending on the information acquired.

Does Buying A Credit Report Affect Your Score?

Acquiring a copy of your credit report more than once or from several companies within a year will not affect your credit score. 

It is because checking your credit report does not count as an inquiry, and as a result, it does not impact your score.

If you check your credit report often, you can make sure the information being offered to lenders is accurate and up to date. It’s also why you should do a check at least once a year.  

You may get a free moneylending history from the three biggest consumer reporting agencies.

That said, your credit score will be affected by the number of times lenders check it and the applications you submit. 

For instance, if you request a personal loan card, the financial institution does a “hard inquiry” or a thorough check of your credit history.

When you make a loan application, the agency records this data and makes it available to other banking institutions. 

Applying for several loans in a limited amount of time could hurt your credit because it will seem as if you’re trying to increase your debt load.

What Is A Licensed Money Lender?

In Singapore, licensed money lenders have been given the go-ahead by the Ministry of Law to operate a moneylending business. 

These trustworthy money lenders must comply with Singapore’s rules and regulations as per the Moneylenders Act. 

Limits on how much you may borrow relative to your income, as well as the minimum and maximum interest rates and fees associated with loans are set down here.

Singaporeans and permanent residents are eligible for quick loans from licensed lenders. 

Foreigners in Singapore possessing a valid Employment Pass may also apply for loans from licensed money lenders.

Because of this, legal moneylending institutions in Singapore should be considered if you are  looking for an urgent loan. 

This is because the procedures they use typically have fewer requirements than traditional banks.

Regulated money lenders often only provide modest loans since their businesses are typically run on a smaller scale. 

They simply cannot afford to risk losing millions of dollars if a customer cannot return the loan.

A licensed money lender’s loans depend on your income and are unsecured. Nevertheless, the amount you may borrow can range anywhere from a few hundred bucks to as high as $1,500. 

However, several benefits and drawbacks are associated with obtaining a loan from a licensed money lender.

Some samples are presented below for your consideration to help you make a more informed choice about borrowing money from a legal moneylending institution in Singapore.

Advantages

  • A more streamlined approval procedure, with some approvals given in less than half an hour if you have all the required documentation
  • Repayment terms that are adjustable to suit your circumstances
  • An application that may be completed quickly and efficiently and can be found online
  • A negative report from a money lender is not a problem for money lenders. It may be willing to approve your loans and provide you with a credit counselling plan to reorganise your payments even if your report is poor

Disadvantages

  • Monthly interest rates are high – and can go up to 4%
  • Loans from financial institutions subject to regulation often have a shorter payback period of up to a year
  • Your yearly salary is used to calculate the maximum loan amount that you are eligible for
  • Fees are charged for payments that are late or not received 
  • If you do not make your payments on time, your credit score will be affected 
  • Your borrowing habits may become out of hand

Which Loans Are Not Reported To The Credit Bureau?

Credit Bureau Singapore is always informed about any loans you take out with authorised money lenders in the country.

It covers any of your previous debts that have previously been repaid, as well as those that have gone into default or are still outstanding. 

Personal loans from family and friends and loans from overseas will not be a part of the report and grading by the money lender.

Where Can I Find My Credit Score?

Here’s what to do iIf you are wondering how to check your credit score. 

Purchase A Copy Of Your Credit Report

Most borrowers in Singapore do this to acquire their credit ratings. 

Simply request for the report on the CBS website to receive it. You can buy it with a credit card for around $6.40.

Obtain A Report For Free

When you apply for a new credit account, such as a loan, credit card, or mortgage, the credit bureau must provide you with a free credit report. 

It will send you a credit report regardless of whether or not the loan is approved. The three major consumer reporting companies must give you a free credit report annually.

This is meant to help customers check and review their loan details to ensure the report is complete and correct.

What Makes A Good Credit Score

Wondering what is a good credit score in Singapore? 

Credit reports and ratings are obtainable from Credit Bureau Singapore. A credit bureau score is a numeric representation of your creditworthiness as a borrower, as determined by the major credit bureaus. 

Financial institutions use this metric to develop an educated guess on the likelihood of borrowers’ success in meeting his or her financial obligations. 

The credit score considers your payment history, including the amount owed, the payment due date, and the payment delay if any. 

The number of new credit applications you’ve made lately and the age of your oldest open account(s) may also be factored in.

The formula utilised to build these ratings is not readily accessible to the public. But in general, your whole credit history is compiled into a single number that ranges from 1,000 to 2,000 points. 

Those with scores below 1,000 are at risk of not making monthly payments and given the HH rating. Those who score close to 2,000 points, which is towards the high spectrum, are considered safe borrowers by lenders. 

When deciding whether or not to lend money, money lenders and conventional banks will look at a borrower’s credit score, among other variables. 

Your yearly salary, the time you’ve been employed, and any information you have about bankruptcies or lawsuits may also be considered.

A lender’s willingness to lend to you at the most excellent rates, reserved for borrowers with the most satisfactory credit, may also affect your credit score.

Unlike Moneylenders Credit Bureau reports, CBS’ credit records are available to banks and licensed money lenders.

A MLCB Report Is Useful 

Both licensed money lenders and borrowers like yourself stand to gain from the Moneylenders Credit Bureau’s existence.

Licensed lenders can now assess the likelihood of a borrower defaulting on their payments, which means they no longer need to be concerned about their funds being lost.

Borrowers who are less likely to make their payments on time can take out loans at a slower pace, preventing them from getting too deep into debt. 

The MLCB also allows individuals to voluntarily opt out of receiving personal loans through licensed money lenders by filing for self-exclusion.

Do you need financial assistance in a hurry? Then you should consider getting a loan, which allows you to take care of a pressing issue before your next paycheck will be coming in.

You can acquire the most reasonable loan possible with the assistance of BST Credit. Contact us today or apply for a loan now.

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