Anna Agoncillo, Author at MoneyDigest.sg

Newbie’s Guide To Singapore’s Credit Bureau

The Credit Bureau (Singapore) is a principal credit consumer agency, which has the most comprehensive industry uploads originating from all the major financial institutions and retail banks. Credit Bureau (CB) is a joint venture between the “Infocredit Holdings Pte Ltd.” and “The Association of Banks in Singapore”.

The Monetary Authority of Singapore’s (MAS) vision to improve the public’s risk management capabilities is in lined with the holistic embodiment of CB. How is this so?

The Banking Act allowed the members of CB (e.g., credit card companies) to reveal credit-related data for the strong purpose of analyzing the creditworthiness of existing and potential customers. Simply, CB presents a “complete risk profile” of a particular customer to a particular credit card provider.

This complete risk profile includes a tangible number called the Credit Score. The Credit Score is an independent assessment of an applicant, which guides the decisions of the lenders. It is gauges the likelihood of repayment as well as the probability of going into default. You must pay close attention to your Credit Score if you are planning to apply for any forms of loans or credit. For instance, you and your spouse need good Credit Score to successfully take up an educational loan for your children.

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Say your Credit Score has been in its low point for the past 2 months. Wary not, my friend. You may still rejuvenate your credit history as the reports from the CB manifest your record on promptness over a 12-month period. You read that right! You have the ability to technically “undo” a poor credit history due to late payments and unmet minimum repayment sums. However, paying your monthly credit card bills and loan installments on time must be your top priority for the next 12 months. Doing so will only clean up a section of your credit report known as the “Account Status History”.

Hope fades when your problems go deeper than late repayments. Serious financial situations such as bankruptcy proceedings and debt management programs will remain reflective on your credit report. You have to be careful to secure a pleasant future!

Sources: 1, 2, & 3

Are You Cut Out To Be A Landlord In Singapore?

While looking out for a flat seems like an easy task, hard work needs to be poured behind the scenes. Ensure that you are prepared to be a landlord by analyzing some of the initial factors:

Are you familiar with the legal regulations?

Much like the systems imposed in many institutions in Singapore, rental property owners need to follow a set of regulations as mandated by the Law. Facets include leases, licenses, security deposits, maximum number of tenants, and eviction matters. These facets are examined by attorneys and other authorities in order to protect the interest of the landlords and the tenants.

It is important to be specific when it comes to written documents in order to have a strong support to your case, shall a dispute arise. Acknowledge the landlord-tenant rights as well as the eligibility standards for renting out a flat in Singapore. For starters, you have to be a Singaporean Citizen who has met the Minimum Occupation Period (MOP) to rent out an HDB flat.

Can you afford to become a landlord in Singapore?

Since your first property is the flat that you are occupying at the present, your investment will be considered as a “second property”. Just because you have a sufficient amount of money saved up for down-payment does not necessarily entail that you can afford to purchase a second property! Remember that you are living in Singapore – one of the most expensive cities in the world.

It will become your responsible to keep up with the ownership fees, maintenance costs, and mortgage. Familiarize yourself with these expenses before taking the significant plunge.

Do you consider yourself as a “people person”?

The media has portrayed landlords as people who exude unpleasant characteristics such as being slow in tenant assistance. If you really want to break this stereotype, you must determine if you are a genuine people person.

A “people person” finds delight when interacting with other people. Some landlords are naturally born with this trait. However, others have to bring extra effort when socializing. Ask yourself these questions:

a. Do you have the capacity to understand the tenants’ needs?
b. Are you willing to actively listen to your tenants’ concerns?
c. Will you tend to the property matters immediately?
d. Are you willing to make upgrades on your property regularly?

Answering these questions will help you determine if becoming a landlord is right for you. I cannot deny the fact that having good communication and interaction skills can help you to attract more tenants!

Image Credits: pixabay.com

Rental property ownership is one of the most profitable investments for your retirement portfolio. It is also an excellent source of passive income. To know whether you are cut out for the job or not, you must initially analyze the factors above.

Sources: 1 & 2

How To Bounce Back From The Holiday Splurges

The Yuletide season is upon us! Today is special as we celebrate the joyous occasion of Christ’s birth. While some people may not celebrate Christmas, December 25 (Sunday) is considered as a public holiday that will be observed on December 26 (Monday). Many Singaporeans take this long weekend as an opportunity to be with their families or to travel overseas.

If you went a little over your budget these season, January may welcome you with large debts and bank statements. Do not panic just yet. Take a deep breath! Consider these steps to bounce bank from your holiday splurges:

STEP 1: KNOW WHERE YOU STAND

You must initially assess your overall monetary situation. It does not take a financial whiz to decode what the first step entails! Simply include your budget and spending patterns from the past two months as well as your financial goals (i.e., both long-term and short-term).

Make a detailed list of all your debts, bills, due dates, and interest rates. This will help you to create a timeframe that will guide you towards paying down your debts. There is hope!

STEP 2: IDENTIFY WAYS TO CUT BACK

The damage has been done! It is time to take control of the situation by breaking the cycle of frivolous spending. Commit to a debt diet or prevent purchasing non-essential goods.

Avoid unnecessary spending by employing strategies such as reducing your energy consumption, using coupons, planning your weekly meals, or comparing prices online. These may seem miniscule, but these measures can make a huge difference to your wealth!

STEP 3: PLAN FOR THE FUTURE

To secure the future of your finances, you must build a robust budget plan to pay off all of the extra debts that were incurred during the season. Revise your current budget and stick to it! Be realistic when it comes to how much you can pay at a given point in time.

The remaining days of December is a good time to start thinking ahead. Understand what went wrong in your current holiday budget to help you next year. Perhaps you need to purchase your gifts as early as the Great Singapore Sale to save more money. Or, you may lower your entire gifting allowance.

Image Credits: pixabay.com

Whatever your mistakes were, it is important to learn from them.

Sources: 1,2 & 3

Incredible Saving Tips That You Must Know Before Buying An Engagement Ring

Take A Chance On The Pawn Shops

In a gloomy night in November, my friend proposed to his long-term girlfriend. The surprise does not stop there as they are expecting an adorable edition to their family. Due to the urgency of the situation and his tight budget, he considered purchasing from the pawn shops along the Little India. The varying rates of the rings here are slightly lower than those offered by the chain jewellers. He grabbed this opportunity ferociously!

You see, unlike some Singaporeans, my friend is not superstitious. He does not believe that purchasing a second-hand ring can induce bad luck. It is a surefire way to stretch your dollar if you hold the same perspective as him.

Negotiate With The Craftsman

I cannot deny the fact that going to a commercial jeweler follows a swifter process. You simply have to step inside the likes of “Love & Co.” and “Lee Hwa Jewellery” and purchase a ring right away. However, convenience comes with a hefty price tag. Consider buying personalized rings from local or online craftsman.

Negotiate with the jeweler and ask if he or she is willing to change the settings of your desired ring. Settings include the 4C’s: carat, cut, color, and clarity.

Opt For The Color Yellow

Different hues grace the very essence of the diamond rings. Since colored diamonds are extremely rare, they are priced handsomely. The supply and demand dictates the varying prices of the said fancy colored diamonds. There is still hope for your pocket as the least popular hues are less expensive.

This is why you must go for the most underrated colors such as Grey, Brown, and Orange. Asians shy away from Yellow diamonds due to the common misconception that it does not suit our skin tones. Try out intense and fancy Yellow diamonds first before believing the majority. Do not be too quick to judge!

Use Your Beneficial Card

Subscribing to the “married club” entails costs that exceed thousands of dollars. How often will this happen to you? Well, you better maximize your purchase! Get as many discounts or rebates as possible by charging your engagement ring in your credit card.

For instance, you may use your American Express True Cashback Card. It offers 3% cashback on the first S$5,000 that you spend. And, there is no limit on your earnings. Isn’t that amazing?

Image Credits: pixabay.com

May these tips help you to save enough money to buy your dream engagement ring. The only thing that you may worry about is your ability to gather your guts in order to ask one of the most significant questions in your life.

Sources: 1 & 2

Robo-Advisors: The New Wave Of Wealth Managers

Wealth Management Services used to be exclusive to the people who are insanely rich. These people were expected to pay at least 1% of the value of their assets as fees. Many wealth managers charge more than this! This is why these services leave no room for small-time investors.

Traditional wealth managers provide tailorized advice on financial matters such as investments, retirement, taxes, and estate planning. You must keep up with your annual fees to reap these benefits. However, a new wave just hit the country! Several FinTech (i.e., Financial Technology) companies have digitalized wealth management services.

These digitalized wealth managament services make use of “robo-advisors”, which allow all sorts of clients to build a portfolio at a cheaper rate. Robo-advisors measure your risk appetite and diversify accordingly. The gradual growth of robo-advisors is seen around the globe.

Know more about robo-advisors by watching this short video:

The local FinTech companies that I mentioned above include Bambu and Smartly. Let me kick off with Bambu. Bambu chose the B2B (i.e., Business to Business) route in marketing their robo-advisory platform. This means that they offer their services to the financial institutions themselves.

Ned Philips, the brainchild and CEO of Bambu, believes that the quick rise of digital adaption will greatly benefit the consumers. He explained that it may cost his company US$1 million (S$1.45 million approximately) to acquire 3,000 customers. The low fees that robo-advisors charge make it possible for him to sustain the business.

Smartly, on the other hand, allows its clients to invest in internationally diversified portfolios. The company offers ETFs or Exchange-Traded Funds. You can invest for as low as S$50 per month. You read that right! Their fees are very affordable!

Clients or investors are mandated to provide basic information about themselves. Then, Smartly’s proprietary algorithms will suggest a personalized portfolio based on the profile. It is possible to change the allocations of the funds if the client does not agree with it. Its mere slogan will say it all: “Anyone can be an investor – an investment service built for you.”

In summary, robo-advisors allow you to create a portfolio on autopilot. The digital algorithms access your tolerance to risks and your preferred timeline. Afterwards, a portfolio will be built. It is undeniably cheaper than the traditional wealth management services. This is why it welcomes more and more small-time investors to open their accounts.

Image Credits: pixabay.com

Do you think that this will benefit the Singapore market? Well, I hope so!

Sources: 1 & 2

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