Recently I have to buy my own credit report from Credit Bureau Singapore (CBS) and submit to Housing Development Board (HDB) for the application of the housing loan.
It cost me S$6.42 and I could immediately download the report.
I was quite surprised to see the records of all my loans and credit card amounts in the report. It was definitely more comprehensive than my memory – I didn’t know I have more credit cards than what could be found in my wallet.
The report also showed how much I have spent on my credit cards for the past 5 months, and whether I have repaid them on time.
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I went on to the CBS website to understand a little more and found out that it is backed by The Association of Banks in Singapore and gazetted by the Monetary Authority of Singapore. It has access to 29 financial institutions and that is why the records were comprehensive.
My Bureau Score was 1,972.
I believe this is a proprietary scoring system. It ranges from 1,000 to 2,000, with 1,000 having the highest probability of default.
Given my score, my probability of default was 0.12%. Heh, if I am in Game of Thrones, I would say…
How were my peers doing?
The most interesting part was the last part of the report which CBS provided some statistics about my age group.
It showed the average loan amounts in the age group of 30 to 34.
People in my age group typically have (as at Dec 15)
- $4,015 credit card bill
- $23,981 personal loan
- $31,491 car loan
- $283,826 housing loan
- $343,313 total loan
All the loans seem normal to me except the personal loan. I didn’t know anyone among my peers having such borrowings.
I believe education loan and renovation loan are considered personal loans, which are more likely to be incurred by my peers as they take on Masters Degree or home renovation.
Besides the housing loan which can be serviced by CPF monies, the rest would have to be repaid with cash.
I have assumed credit card interest rate of 24% per annum and loan to be fully repaid in 1 year. The monthly repayment would be $379.66.
I have assumed personal loan interest rate of 8% per annum and loan to be fully repaid in 3 years. The monthly repayment would be $751.48.
Lastly, the car loan is assumed to be at 3% per annum and loan to be fully repaid in 5 years. The monthly repayment would be $603.58.
The total monthly loan repayment in cash would be $1,734.72.
The 30-34 age group has a median income of S$4,080 and with $1,734.72 debt repayments, the debt servicing ratio is 42%! Don’t forget we have not added the mortgage repayments!
I always remember the golden rule is to keep below 35%.
It appeared that my peers are laden by debts.
Do you agree?