What Is Credit Score? And How Does It Affect My House Loan?

The topic of credit score is becoming more popular as the public is educated on managing their finances. This has been a much less discussed topic from years ago. Because of the US mortgage situation some years back, more people are now aware of good and bad credit house loans. And since it has shown that even the biggest of players can get into trouble, lenders are becoming more careful in approving house loans. Your credit score can somewhat judge your financial conduct and level of responsibility.

Your credit score is tabulated from your personal credit record. And your credit record is a compiled report on your legitimate credit facilities and how timely you have been on making payments. Every lender has its own internal policies and assessment guideline on how to analyze your credit record. So there is no universal answer on what a lender judge to be a good record. However, if you are making full, timely, and prompt payments on your credit facilities, without a history of defaults, arrears, bankruptcy, you will probably have a satisfactory credit score.

Your credit affects your house loan Singapore application significantly. Few (if any) lenders will be comfortable in offering a loan to someone who is currently struggling to make payments on credit card bills. However, depending from lender to lender, a lender may be willing to be more flexible if you have a long and considerable relationship with them over the years. A credit score that a lender has assessed as adverse can result in your house loan Singapore application being declined or only being offered a low quantum on the house loan.