I'm a score of HH.
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Many people misunderstand why a higher loan isn’t approved, even when you have a strong HH credit rating and have always paid on time. Here are some key points to consider:
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Application Frequency: If you’re submitting multiple loan applications within a single month, it could harm your credit standing. Excessive enquiries can signal financial instability, even if your payment history is impeccable.
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NOA (Notice of Income Assessment): A robust NOA is crucial. Without a solid record of income for at least two years, banks may view your application as riskier.
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CBS (Credit Bureau Singapore) Scoring: Each loan application is reflected in your CBS report, and too many applications in a short period can negatively impact your score. What might seem like minor actions—each enquiry from a bank—can quickly shift your rating from, say, a BB score to an EE score.
Ultimately, even if you’re a HH score and have a perfect repayment record, the combination of frequent applications and insufficient income documentation can still lead to a lower credit rating, making banks hesitant to approve a higher loan.