Credit score is often a rarely talked about topic in personal finance. Interestingly, the Monetary Authority of Singapore (MAS) has authorised only
two credit bureaus to issue credit reports and credit scores. These are the Credit Bureau of Singapore, and DP Credit Bureau. From the table below, we can see the range of credit scores assigned to an individual:
| Credit score | Risk grade | Probability of default |
|---|
| 1911 to 2000 | AA | ≤ 0.27% |
| 1844 to 1910 | BB | 0.27% to 0.67% |
| 1825 to 1843 | CC | 0.67% to 0.88% |
| 1813 to 1824 | BB | 0.88% to 1.03% |
| 1782 to 1812 | EE | 1.03% to 1.58% |
| 1755 to 1781 | FF | 1.58% to 2.28% |
| 1724 to 1754 | GG | 2.28% to 3.48% |
| 1000 to 1723 | HH | 3.48% |
If your score is nearer to 2000, you’re in the pink of financial health, with a low risk of default. If your credit score is closer to 1000, it means that you might be at higher risk of defaulting. But what benefits does a good credit score provide you?
Benefits
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