A credit score is a measure of your credit behavior, predicting the likelihood of you paying back loans on time based on information from your credit reports. In Singapore, credit scores are determined by algorithms that track credit usage. Credit scores are ranked according to the following risk grades: AA is the highest, while BB or CC indicate late repayments or delinquency, and DD or lower indicate defaults. The credit score risk grades are as shown below. You can easily
KEY HIGHLIGHTS a. Paying with cash can encourage mindful spending, as it lacks the convenience that credit cards have. b. Credit cards have security features and a rewards program, which cash does not have. c. Interest charges and late payment fees can pile up if you don’t pay off your credit card balance on time. With the easing of travel restrictions, you are hearing more family and friends discuss their latest holiday plans. Some may even brag about the “free
Convincing yourself that you are not spending real money is easy when you charge for items on your credit card. Technically, you are correct! You are not spending money, in fact, you are borrowing money. Using your credit card means that you will have to pay the bill eventually. The promise of small minimum payments can entice you into thinking that these purchases are bargains. Unless you pay back the purchase immediately, you will not feel the pain of the
Personal loan is one of the most sought-after loans in Singapore. With a personal loan, you can borrow funds from a financial institution and pay them back in fixed instalments over an agreed period. However, you typically need to meet a minimum income requirement and to pass a background check on your credit history. Generally, it is much cheaper to get a personal loan rather than borrowing money from a moneylender. Moreover, you will need to submit a lesser number
Financial wellness refers to effectively managing your economic life. This concept surrounds many factors such as spending within one’s means, being financially prepared for emergencies, having a concrete plan, and having access to tools necessary to make good money decisions. Financial security is the underlying concept of financial wellness. To help you reach financial wellness, you may start by following these steps. STEP 1: COMMIT TO CHANGE The first step in developing a financial plan is to determine your attitudes
