GX in credit score

[Zannoynous]

Hi all,

Just trying my luck here.

My credit score was HH in the month of 2013 which is like 6 years back, did a stupid loan from a bank and spoiled my whole credit score for just the amount of $3600. Loan was paid and after that had no outstanding.

Waited till now for the credit bureau to refresh my credit score which was now GX. Me and my wife waited till now so that we could apply for a renovation loan but then was rejected. Was told by one of the banker to try build a credit history by signing a CC. But then CC also failed.

Anyone had any advise on how and what i should do?

The bank did not even give a approval, how do we even build up the credit score?

 

[SibehHL]

One way is to apply for a secured credit card; i.e., bank in FD for $5-10K with very low interest rates.

Spend and pay up that card bill on time. You will see improvement in your credit score after 6 months....

 

[BBCWatcher]

Yes, and (to be specific) CIMB offers secured credit cards with no annual fee for life, and their fixed deposit rates are rather good. Set the card up for automatic full monthly balance payment via GIRO, then treat it like a debit card. Although there are better debit card offers available, notably the DBS Visa Debit Card's 5% payWave rebate promotion. So you're not actually going to be using this CIMB card very much. But it's useful to rebuild your credit score.

You might also qualify for the Diners Club ACE credit card, which is a $500 limit credit card with an annual fee of $28, waived the first year. Same thing: set it up for automatic full monthly balance payment via GIRO. It's not as widely accepted as Visa, Mastercard, or even American Express, but that's a good thing in this case.

ICBC's Global Travel Mastercard is available if you place a fixed deposit of $10,000, and they also have good fixed deposit rates. That's an excellent card. Same thing: set it up for automatic full monthly balance payment via GIRO. The annual fee is waived for 3 years.

 

[Zannoynous]

I understand that there's a way which is to go for secure cc. But that's a fixed deposit of 10k which for now we do not have.

 

[havetheveryfun]

I understand that there's a way which is to go for secure cc. But that's a fixed deposit of 10k which for now we do not have.

well if both you and wife don't even have savings of 10k added up.... can see why the bank thinks your credit score is bad.

They probably also have some backend systems to check how much savings you have across your bank accounts (an estimate) when you applied for the normal CC...

 

[BBCWatcher]

You could try to get a $500 limit credit card to start rebuilding your credit history, as I mentioned.

I forgot that CIMB introduced a new credit card called “AWSM” which is a $500 limit card (or at least can be), and it’s annual fee free for life. That’d be the first choice in this particular category. If CIMB has difficulty approving you for even a $500 limit then you could ask whether a small ($1,000?) fixed deposit would be enough to secure it.

 

[Zannoynous]

Tried applying, am still waiting for their reply.

If this $500 credit limit cc also can't approve then no choice. They don't even give a chance for us to prove that we are a good paymaster, how are we even going to show them.

 

[Zannoynous]

@havetheveryfun without 10k as saving does not mean we are not a good pay master. We are both below 30s, our salary is not that high but then to say its average and maybe abit higher. I am here trying to find ways, not here to compare. And if you were to say that they have system to check our saving then they should be able to see the saving we save for our kids, its not 10k but at least a 5k.

 

[xhlee87]

Since you are quite young, have you meet the $30k annual requirement for normal cc?

Try applying for bank which you have saving account or the $500 credit limit card.
Higher chance of approval.

 

[Zannoynous]

Since you are quite young, have you meet the $30k annual requirement for normal cc?

Try applying for bank which you have saving account or the $500 credit limit card.
Higher chance of approval.

Yes, my annual is 54,000. I tried applying for cimb 500$ credit limit cc also rejected. Now am waiting for diners ace $500 for answer. It's still pending and they said the processing takes around 1mth.

 

[AhPohPoh]

Yes, my annual is 54,000. I tried applying for cimb 500$ credit limit cc also rejected. Now am waiting for diners ace $500 for answer. It's still pending and they said the processing takes around 1mth.

Assuming annual of 54,000. You should at least have couple of thousands being deposited into your bank account each month. Try to apply with the bank that your salary is being credited into ba (assuming GIRO), it'll make things easier, sometimes auto approval.

Don't want to probe cause everyone has different circumstances but if your annual salary is 54,000 I assume you should be already be working for a couple of years and have saved at least 10,000 worth of savings. Else how would a bank feel 'safe' to give you an unsecured line of credit.

 

[di_andrei]

Just a quick note in case you are not clear on the GX "rating" - GX is mostly an indication of lack of information rather than a "bad" rating. As suggested above, your efforts should be focused on creating some history - to get a proper rating in the first place.

 

[doody_]

It will take years to get out of the hole you dug in 2013. Save up 10k first to get a secured card. You can always use the savings for your kids which is already 5k.

 

[Zannoynous]

Assuming annual of 54,000. You should at least have couple of thousands being deposited into your bank account each month. Try to apply with the bank that your salary is being credited into ba (assuming GIRO), it'll make things easier, sometimes auto approval.

Don't want to probe cause everyone has different circumstances but if your annual salary is 54,000 I assume you should be already be working for a couple of years and have saved at least 10,000 worth of savings. Else how would a bank feel 'safe' to give you an unsecured line of credit.

My salary is credit to DBS bank, I tried applying n fail too. Yes Im 28, my salary just got 30k at the age of around 24. My wife was not working during the time and only started working last year jan. My salary had been covering for hdb loans, child care, insurance, marketing etc. Just nice for all. Only can start saving when my wife started working last year

 

[Zannoynous]

Just a quick note in case you are not clear on the GX "rating" - GX is mostly an indication of lack of information rather than a "bad" rating. As suggested above, your efforts should be focused on creating some history - to get a proper rating in the first place.

Yes I am aware of it. But how do increase history when bank don't even approve any credit facilities to me at all?

 

[Zannoynous]

It will take years to get out of the hole you dug in 2013. Save up 10k first to get a secured card. You can always use the savings for your kids which is already 5k.

Yes I know it will take years, already waited 5years for the credit bureau to be refreshed. I tried thinking of using the 5k too but bank stated min of 10k and also there's prolong period if were to take out the money if you don't need it.

 

[BBCWatcher]

I tried applying for cimb 500$ credit limit cc also rejected.

Did you ask CIMB whether you could secure that card with a small ($1,000) fixed deposit?

Another possible approach is to ask a parent to be a guarantor for a $500 limit CIMB AWSM credit card. That parent would only be responsible for $500 plus interest if you were unable to pay, so it’s not a huge ask. Ask CIMB for details on how to set up a guarantor.

 

[Zannoynous]

Hi,

Thanks for the suggestion. i just got a reply from CIMB that my cc was approved!

 

[BBCWatcher]

Thanks for the suggestion. i just got a reply from CIMB that my cc was approved!

That’s terrific, and that card is a keeper since it’s annual fee free for life.

Reminder: I’d set it up for automatic monthly full balance payment via GIRO. This certainly isn’t the time to damage your credit history again.

It’s OK to let your Diners Club application proceed if you wish. Diners Club is unique among credit cards in allowing you to top up your CPF account via AXS, although that’ll be within the $500 limit of the Ace card. Also, you don’t get any points for CPF top ups, but you do get a little bit of delay (until the next credit card bill), and that’s worth a bit of extra bank interest. However, set a reminder to yourself at month #11 to cancel that card if you cannot qualify for an annual fee waiver.

 

[adrwong]

Hi,

Thanks for the suggestion. i just got a reply from CIMB that my cc was approved!

Congrats! Which card did CIMB approved you eventually? Thought you mentioned that they rejected the $500 limit card.