How to improve credit score?

[dash_slate]

Yesterday I was a bit surprised to see my current credit score is only 1845 (lower range of BB, very close to CC), because I always had a perfect 2k for quite a few years. I did apply for 4-5 cards recently, but I never had a single late payment so I never thought my score had been affected by so much.

From the credit report, I have the following:

Credit exposure: moderately increases risk
Too many enquiries: marginally increases risk
Immature credit history: marginally increase risk

I read many conflicting views on ways to improve the credit score. Some say closing some credit cards will help, but others say it will hurt the score because debt to credit ratio will increase.

I have the following credit cards at the moment, and I appreciate your suggestion on how I can improve my credit score to at least AA.

1 UOB cards (8k limit)
1 Maybank card (22k limit)
2 SCB cards (30k limit)
1 Citibank card (24k limit)
2 Amex cards (10k limit)

PS: I would like to retain UOB and Maybank cards because it is tied to One account and Saveup account.

 

[fr33d0m]

Yesterday I was a bit surprised to see my current credit score is only 1845 (lower range of BB, very close to CC), because I always had a perfect 2k for quite a few years. I did apply for 4-5 cards recently, but I never had a single late payment so I never thought my score had been affected by so much.

From the credit report, I have the following:


I read many conflicting views on ways to improve the credit score. Some say closing some credit cards will help, but others say it will hurt the score because debt to credit ratio will increase.

I have the following credit cards at the moment, and I appreciate your suggestion on how I can improve my credit score to at least AA.

1 UOB cards (8k limit)
1 Maybank card (22k limit)
2 SCB cards (30k limit)
1 Citibank card (24k limit)
2 Amex cards (10k limit)

PS: I would like to retain UOB and Maybank cards because it is tied to One account and Saveup account.

cancelling card does not necessarily improve your credit score. just give it a bit of time. It will all be cured.

Do you have any immediate use of a new unsecured credit line? if not, just wait. It hurts nothing with BB.

 

[seowbin]

i recently applied for SCB fund transfer, got the free report, mine is BB also. 1851

i'm not really concerned since i already got housing loan

With AA, will have special discount for loans is it?


by the way, those CC i closed, like OCBC in 2016 still appears in the report.

 

[Perisher]

I have had more than 10 cc at the same time before. It doesn’t affect credit score for the credit report, mine is AA 2000 points. I check mine every year. I know of someone who has same amount of cc with AA score too.

So ya, number of cc doesn’t affects credit report but it doesn’t mean banks will only look at that report when granting loans.

Each bank has their own internal algorithms with regards to how they grade you and the loans they are willing to give.

 

[Tiger9119]

Applying for too many credit cards at once
It’s easy to get sucked into applying for several credit cards at once, especially when credit card companies throw some great sign up rewards at you – like immediate cashback, vouchers, or bonus miles/points. But what you may not know is that when you apply for several credit cards within a short period of time, you’re actually hurting your credit.

Because when you apply en masse for credit cards either to get the sign up rewards or to see who will approve you (shopping around) – credit card companies will believe either you had multiple rejections, or your applications were unsuccessful.

Regardless of the result, the credit bureau will lower your credit score if you make too many enquiries within a short amount of time. Because asking for several lines of credit at the same time makes the credit bureau suspicious.

If you’re applying for several credit cards at once, going after 1 or 2 at one time is a much safer bet.

Applying for numerous personal loans or a mix of loans and credit cards can have the same credit score reducing effect.

https://blog.moneysmart.sg/credit-cards/unknowingly-hurt-credit-score-report/

 

[Perisher]

With regards to the above post, I do not know the answer since I applied mine all at different time.

Does the above post has any solid evidence that credit score will drop if apply 5 cards or above at the same time?

 

[Trazora]

Applying for too many credit cards at once
It’s easy to get sucked into applying for several credit cards at once, especially when credit card companies throw some great sign up rewards at you – like immediate cashback, vouchers, or bonus miles/points. But what you may not know is that when you apply for several credit cards within a short period of time, you’re actually hurting your credit.

Because when you apply en masse for credit cards either to get the sign up rewards or to see who will approve you (shopping around) – credit card companies will believe either you had multiple rejections, or your applications were unsuccessful.

Regardless of the result, the credit bureau will lower your credit score if you make too many enquiries within a short amount of time. Because asking for several lines of credit at the same time makes the credit bureau suspicious.

If you’re applying for several credit cards at once, going after 1 or 2 at one time is a much safer bet.

Applying for numerous personal loans or a mix of loans and credit cards can have the same credit score reducing effect.

https://blog.moneysmart.sg/credit-cards/unknowingly-hurt-credit-score-report/

Think the effect of applying multiple cards at once is not so big to really affect loan application. The score will go back up after some time too.

 

[lalelilolul]

I was from banking sales, daily deal with loan products last time.

Based on personal experience, keep 1 card will do. And lower your limit.

Why so? It ia all about your maximum potential loss. If your max credit is $10k (versus $100k), you are deemed safer for other new lenders.

 

[lalelilolul]

Does the above post has any solid evidence that credit score will drop if apply 5 cards or above at the same time?

It is not about your number of credit cards.

It is about your total credit limit.

 

[badsector]

ts.. u got reject for a loan? what kinda loan?
why look at ur credit scores?

i've never check mine before

 

[Tiger9119]

With regards to the above post, I do not know the answer since I applied mine all at different time.

Does the above post has any solid evidence that credit score will drop if apply 5 cards or above at the same time?

From CBS:

6. Enquiry Activity

This refers to the number of new application enquiries found in your credit
Each time a potential bank/financial institution pulls your credit report in response to a new loan application, an enquiry is placed on your file. Having too many enquiries in your credit report indicate to lenders that you are trying to take on more debt, therefore increasing your credit exposure.
To keep your enquiries to a minimum, try to limit the number of loan facilities and credit cards which you apply for.
Review enquiries on existing loan facilities do not affect your score.

https://www.creditbureau.com.sg/credit-score.html

 

[Perisher]

From CBS:

6. Enquiry Activity

This refers to the number of new application enquiries found in your credit
Each time a potential bank/financial institution pulls your credit report in response to a new loan application, an enquiry is placed on your file. Having too many enquiries in your credit report indicate to lenders that you are trying to take on more debt, therefore increasing your credit exposure.
To keep your enquiries to a minimum, try to limit the number of loan facilities and credit cards which you apply for.
Review enquiries on existing loan facilities do not affect your score.

https://www.creditbureau.com.sg/credit-score.html

Will read that up. Thanks.