What Is The Money Lender Credit Bureau?
Getting a loan for an emergency can be a useful option.
If you want a loan and are not sure what is money lender credit bureau, you have come to the right place.
In this article, we have vital information about MLCB, credit records and how they help you get a loan.
What Is The Money Lender Credit Bureau?
The Moneylenders Credit Bureau (MLCB) is a central source of data or a database with borrowers’ loans and their repayment history.
A moneylender report allows legal money lenders to evaluate a borrower’s creditworthiness.
The MLCB report provides an independent and objective assessment of a borrower’s ability to repay his or her loan, which assists the money lender in deciding on the riskiness of lending such a borrower.
An MLCB report is all about…
Your Credit Report And Creditworthiness
To licensed money lenders, a credit report is what helps make them decisions on whether to loan you or help you avoid borrowing beyond your limits. The report enables them to obtain the credit ratings and scores of a borrower.
Credit scores offer the best gauge of a borrower’s creditworthiness. Therefore, it makes sense for a borrower to learn what is money lender credit bureau report.
Having a good credit score puts you in a better position to get loans without hassle.
You are given a four-digit number for your credit score depending on your past payment history. The score ranges from 1,000 to 2,000. Lenders see borrowers with 1,000 ratings with a high likelihood of default, whereas borrowers with 2,000 ratings have a low chance of defaulting on payments.
Depending on your score, you may be rejected, or you may only have a chance to borrow a small loan amount.
The best part is that borrowers with bad scores have ways to gradually improve their scores.
How Can You Improve Your Credit Record?
Improving your credit score is possibly the best action you can take regarding your financial life. Every time you need a loan, a licensed money lender will have to check your score.
There are many contributing factors to poor credit scores. Some examples are: delayed payments resulting in adverse credit history, credit exposure, filing for bankruptcy, or borrowing more than your limit, and more.
If you’re in such a situation, there is no need to worry, here are some tips:
Five Proven Ways To Improve Your Credit Score
1. Avoid unnecessary accounts: Too many credit accounts will make you overwhelmed. With a few accounts, you easily maintain your credit score and keep a healthy track of your borrowing.
2. Don’t take multiple loans within a short period of time: If you really need multiple loans, spread out your applications. Applying for many loans within a short time means that you’re in financial difficulty. In case of default, this will significantly decrease your credit score.
3. Pay your loan on time: It would be better not to wait until you’re reminded of your dues. Multiple reminders could have a negative repercussion on your score. You could also find that you may be prone to defaulting on payments. If a situation renders you incapable of paying on time, notify your money lender early.
4. Clear loan defaults: If you have been defaulting on loans, this will make your credit score worse. In such a case, you may be forced to file for bankruptcy, which will seriously impact your score.
Fortunately, there are ways you can build up your credit score. Try these tips:
- Make a financial safety net and keep some money for emergencies.
- Keep up with your payments on new credit cards or any existing loan.
- Check your credit score regularly and take steps to improve it.
- Don’t borrow what you can’t repay.
5. Reduce your open credit facilities: Having too many credit facilities may put you in a challenging situation. The more loans you have, the higher the risk of defaults. Besides, you may miss payments unconsciously.
It’s advisable to close any open credit facility that is not in use to save on fees. Also, you can choose those with low interest rates.
What Is Included In A Loan Information Report?
A loan information report includes your loan repayment history. The report is what legal money lenders review before approving a loan. A loan report contains sections with the following information:
- Your personal data: This includes your full name, NRIC number, as well as your employment records and monthly earnings.
- Exclusion list: This feature allows borrowers to apply for exclusion from applying for unsecured loans from licensed money lenders.
- Type of loan: This refers to what you owe for unsecured or secured loans, among other loans.
- Payment status: Applies for all your existing loans with legal money lenders
Reviewing a copy of your loan information report for review is vital. You get to know of any erroneous entries that could affect your score.
How To Get A Copy Of The Loan Information Report
The best way to get your copy of the loan information report would be to purchase it from Moneylenders Credit Bureau.
Credit Bureau Singapore (CBS) also issues credit reports. You can get it for free; this applies to new credit facility applicants. Or, you can purchase it online for a fee of $6.42.
How And When To Check The Loan Information Report
Checking your report helps you have a clue about your financial health. You can easily purchase your credit report and look at your score.
Some opt to check their report annually. But you can check your credit report as often as you want, especially before applying for a loan.
Note that not everyone can check your report. This ensures your information is kept safe.
Who Can Access The Loan Information Report?
In Singapore, only have four parties can access MLCB reports:
- Licensed money lenders
- The Ministry of Law
- Registry of Moneylenders
Whenever you apply for a loan through a licensed money lender, they will access your credit report from the MLCB. They will use the report to assess the risk of lending you money.
If the report is not favorable, this will affect you.
If you want to apply for a loan, BST Credit is one of the best licensed money lenders in Singapore. We are always here for our borrowers and ready to help with our years of expertise.
Remember to borrow responsibly; it is the only way to ensure you don’t fall into a financial trap and go further into debt.