How to Improve Your Credit Score For A Quick Personal Loan Approval in Singapore

SCB Standard Chartered Personal Loan - Credit Score for Faster Approval

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If you’re looking to get a personal loan and need to boost your chances of getting your personal loan approved — and quickly — you probably already know that this rides on how good your credit score is.

So what do you need to do to ensure that your credit score is in tip-top shape?

Here are 4 useful tips to improve your credit score, so you can have a smooth personal loan application journey:


1. Maintain a good credit habit

Having a good credit habit will get you a thumbs up in the eyes of lenders, who always look at your credit rating to assess your “creditworthiness”.

In short, “creditworthiness” means how reliable you are at returning what money you owe and this determines how “worthy” you are to receive financial credit. Think about it this way: If you’re lending a friend money, you won’t want to lend someone who never seems to return the cash or needs multiple reminders because they always “forget”, right?

Someone with a good credit score is able to manage their debts properly by ensuring they pay bills on time. This can include paying their credit card bill in full each month before the due date, and being on top of monthly repayments for other loans such as mortgage, renovation, car and so on.

They’ve also not filed for bankruptcy, never defaulted on a loan, and have a clean bill of financial health.

To be doubly sure that your credit score is favourable, you can request for a copy of your credit report via the Credit Bureau of Singapore. There’s a small fee of $6.42 (inclusive of GST), but it’s certainly worth your peace of mind.


2. Don’t mass apply to multiple banks

Applying for a personal loan isn’t a “fastest fingers first” game. Your rate of success does not increase with the number of applications sent. It’s not like sending out thousands of resumes to different employers to increase the hit rate for getting called for an interview.

You see, whenever you make a new loan application to a bank, the bank will pull your credit report and this enquiry will be placed on your file. If you apply to 5 banks, all 5 banks will need to do this, and your file will have multiple enquiries.

The banks are able to see that your file has multiple enquiries, and that affects their approval of your personal loan. Having too many enquiries could indicate that you’re trying to take on more debt, which increases the bank’s assessment of the maximum potential loss they would suffer if you should default on payment.

So, choose your bank carefully. Do all your research beforehand, but don’t submit the application for the personal loan until you are sure.


3. Apply at your credit card issuing bank

If you want to borrow money, who is more likely to lend you the cash? A friend who knows your history and character, or a total stranger you just passed by on the street?

It’s the same with banks — if you’re an existing customer of the bank, it will be easier for the bank to know your credit history. It probably has your financial records on file too (not your overall information, but just transactions with this bank alone).

Seeing that you already have a credit card with this bank — and a credit card is kinda like an unsecured loan each month — the bank probably already checked your financial credentials in order to determine your credit limit and to approve your credit card.


4. Keep your credit limit up to date

When was the last time you reviewed the credit limit of the credit card you’ve been using since you started working? Chances are, your income has increased and you’re eligible for a higher credit limit.

Keeping your credit limit up to date with your current salary could help you apply for a larger loan with your credit card issuing bank. Remember, the loan amount you can get depends on your income.

However, even if your credit limit is like $50,000, you shouldn’t max out that entire amount when taking out a personal loan. Limit your loan amount based on what you need — borrowing too much could mean incurring higher interest; and besides, smaller loan amounts get approved quicker.


Getting a personal loan? Look out for promos

Now that you’re clued in on how to boost your chances of getting your personal loan approved quickly by:

  • Maintaining a good credit habit;
  • Not mass applying to multiple banks;
  • Consider applying at your credit card issuing bank; and
  • Keeping your credit limit up to date,

…It’s time to scout for a personal loan to apply for.

One way to get a better deal (lower interest rate, cashback, other perks) is to look for ongoing personal loan promotions.

For example, you can consider Standard Chartered Bank’s CashOne Personal Loan:


About the Standard Chartered CashOne Personal Loan

Benefits include:

  • Interest rates starting from 3.48% p.a. (Effective interest rate (EIR)* from 6.95% p.a.)
  • Loan can be repaid over tenures between 1 year to 5 years
  • Get cash disbursed into any existing bank account of your choice within 15 minutes3
  • Allows for a change of instalment tenure (with a conversion fee of S$50 for each change)

Promotions include:

  • Up to $1,200 cashback upon approval1 in CashOne Personal Loan Cashback Online Promotion 
  • Over S$50,000 of cash prizes to be won2 in CashOne Lucky Draw 2021 Promotion 

Terms and conditions apply.

Find out more about the Standard Chartered CashOne Personal Loan and apply here.


*Effective Interest Rate (EIR) is calculated taking into consideration the first-year annual fee of S$199; and is based on average loan amount of S$20,000 for 5 years tenure.

1Click here for CashOne Personal Loan Cashback Online Promotion Terms and Conditions

2Click here for CashOne Lucky Draw 2021 Promotion Terms and Conditions 

3Standard Chartered Bank (Singapore) Limited’s CashOne Personal Loan / Credit Card Instalment Loan Disbursement Terms and Conditions is applicable if an applicant makes an application for a CashOne Personal Loan (“CashOne”) or a Credit Card Instalment Loan (“Application”), successfully submits a completed Application to the Bank and the Bank approves such an Application. The transfer of funds to the applicant’s designated Standard Chartered Current/Cheque & Save Account(s) or non-Standard Chartered Current or Savings Account (each account a “Designated Account”) (“Loan Disbursement”) is subject to (a) the applicant successfully submitting a completed Application to the Bank; and (b) the Bank approving the Application which must satisfy the Bank’s eligibility criteria, including our credit and risk management policies, as well as prevailing laws and regulations. The Bank reserves the right to reject any Application which does not fulfil our criteria at our discretion. If the Bank is unable to process the Application or the Loan Disbursement due to system failure, system outage, malfunction, delay or any other circumstances whatsoever, whether within our reasonable control or otherwise, the Bank is not able to provide Loan Disbursement within the time periods(as stated in clauses 3 to 5 of the CashOne Personal Loan / Credit Card Instalment Loan Disbursement terms and conditions), and the Bank disclaims all liability arising for any such delay including any loss, damage or inconvenience caused to/incurred by you the applicant, or any third party arising from or in connection therewith. Click here for the full CashOne Personal Loan / Credit Card Instalment Loan Disbursement Terms and Conditions which apply.

All views expressed in the article are the independent opinions of MoneySmart Singapore Pte. Ltd. All information provided is for informational purposes only and is not intended to be construed as advice or an offer for any product or service. Standard Chartered is not liable for any informational errors, incompleteness, delays, or for any actions taken in reliance on information contained herein.