Consolidate Your Debts into One Easy Repayment Plan

A Debt Consolidation Plan (DCP) is a financial solution designed to help you manage multiple unsecured debts. It combines all your outstanding credit card bills, personal loans, and credit lines into a single loan with one monthly repayment.

This allows you to:

• Pay a lower interest rate overall
• Track a single due date
• Avoid juggling multiple creditors

Note: DCPs are typically offered by banks and financial institutions under strict eligibility rules. At Horison Credit, we offer similar debt consolidation options tailored to your needs, even if you don’t meet the usual DCP criteria.

To qualify for a Debt Consolidation Plan (DCP) with Horison Credit, you typically need to meet these basic criteria:

• Be aged 21 years or older
• Have a stable monthly income
• Be a Singapore Citizen, Permanent Resident, or a foreigner with a valid work pass

Most licensed money lenders do not require collateral. Credit checks may be conducted, but approval is often based on your current income and ability to repay, not just your credit score.

If you’re not applying with Singpass, please prepare the following:

For Singaporeans / PRs:

• NRIC
• Latest 3 months’ payslips or bank statements

For Foreigners (with valid work pass):

• Passport and valid Employment Pass, S Pass or Work Permit
• Proof of address (e.g. utility bill or tenancy agreement)
• Latest 3 months’ payslips or salary credit bank statements

If you’re applying with Singpass, your personal and income details will be auto-filled, making the process faster and paperless.

A DCP works by using a single loan to fully repay your outstanding unsecured debts. Here’s the typical flow:

1. You apply for a consolidation loan from one provider.
2. Upon approval, the lender pays off your existing credit card debts and personal loans.
3. You now have just one loan with one interest rate and one fixed repayment schedule.

Horison Credit makes this process simple, legal, and fast, even for borrowers with poor credit or complex debt situations.

A debt consolidation plan may be right for you if you’re struggling to manage repayments across different banks or lenders. Instead of juggling multiple bills and interest rates, you’ll roll them into one manageable monthly repayment.

It’s especially helpful when:

• You’re dealing with high-interest debt like credit cards.
• You’re finding it hard to keep up with multiple due dates.
• You want to avoid default charges and streamline your finances.

A well-structured debt consolidation plan with Horison Credit can offer several benefits:

1. Lower risk of late fees
   You’ll avoid multiple late payment penalties by combining your debts into one fixed repayment.
2. Easier budgeting
   With one due date and one fixed amount each month, it becomes easier to manage cash flow.
3. Potential savings on interest
   Your new plan may carry a lower interest rate compared to your previous loans or credit cards.
4. Better credit standing
   With consistent repayment, your credit score can gradually improve.
5. Flexible repayment options
   We offer repayment terms that can stretch up to 36 months (or more, depending on your profile).

It depends on whether you’re consolidating through a bank or a licensed money lender.

If you’re applying through a bank (under MAS’s official DCP scheme):

Only the following unsecured debts can be consolidated:

• Credit card balances
• Unsecured personal loans
• Credit lines

You cannot consolidate:

• Education loans
• Renovation loans
• Medical loans
• Business loans
• Car or housing loans
• Joint accounts

These restrictions are part of the MAS-regulated DCP rules.

If you’re applying through a licensed money lender (like Horison Credit):

These exclusions do not apply because Horison Credit is not part of the MAS DCP scheme, so we may help you consolidate:

• Various types of outstanding unsecured loans
• Loans taken from different lenders
• Credit card bills
• Selected personal-purpose loans (e.g. medical, education, or renovation)

Each application is assessed individually based on your income and repayment ability.

✅ No fixed restriction list, we offer more flexibility than banks.

If you don’t meet the bank’s DCP criteria, don’t worry, you still have options:

Alternative 1: Personal Loan for Debt Consolidation

• Apply for a tailored personal loan
• Use the funds to repay high-interest credit cards
• Manage your debt under one fixed plan

Alternative 2: Licensed Money Lender Plan
Horison Credit provides legal debt consolidation for individuals who don’t meet DCP income or citizenship requirements.

If you’re struggling to repay your DCP:

• Inform your loan provider early, they may restructure your plan
• For DCPs with banks, you may qualify for a tenure extension
• Missing payments can impact your credit record and limit future borrowing

💡 With Horison Credit, we believe in responsible lending. We’ll work closely with you to prevent defaults and offer options to adjust your repayment plan when needed.

It depends on whether you’re borrowing from a bank or a licensed money lender:

• Banks (under MAS DCP guidelines):
  Partial consolidation is not allowed. You must consolidate all qualifying unsecured debts, such as credit cards and personal loans, across financial institutions into one DCP account. This ensures complete restructuring of your outstanding balances.
• Licensed Money Lenders (under MinLaw):
  Partial consolidation may be allowed, depending on the lender.
  At Horison Credit, we offer flexible debt consolidation solutions that let you choose which debts to include. This can be ideal if you only want to restructure specific high-interest loans without affecting others.

✅ This flexibility gives borrowers more control over their repayments, especially for those who do not qualify for a DCP with banks.

• Banks (DCP under MAS):
  No. Once your DCP is approved, all existing unsecured credit facilities, including credit cards, personal lines, and revolving credit, will be suspended or closed.
  You’ll typically be issued a 1x monthly income revolving credit facility to cover daily essentials.
• Licensed Money Lenders (MinLaw):
  This restriction does not apply.
  When you consolidate debt with a regulated loan provider like Horison Credit, your other credit facilities remain unaffected. You retain control over how you manage your remaining finances.

• Banks (DCP):
  Yes, but only after 3 months from the date your DCP is approved. You must request a settlement notice and may incur cancellation or early repayment fees.
• Licensed Money Lenders:
  At Horison Credit, you can explore early repayment or refinancing options anytime, subject to terms. We keep things flexible, so you can choose better terms without being locked in.

• Banks:
  You remain responsible for the shortfall amount not covered by the DCP. That portion must be paid directly to the respective banks or credit issuers to fully close your accounts.
• Licensed Money Lenders:
  • At Horison Credit, your application is carefully assessed based on your income level, repayment ability, and total outstanding debt.
  • We work with you to ensure the approved loan amount is sufficient to cover all qualifying unsecured debts, helping you avoid hidden shortfalls or unpaid balances after disbursement.

• Banks:
  Once you take up a DCP, your credit report will be updated with a “Debt Consolidation” status.

  Key implications:

  • May reduce your credit score temporarily
  • Prevents you from applying for new unsecured credit until your debt is substantially paid down
  • This record stays on your Credit Bureau Singapore (CBS) report for 3 years after the DCP is fully repaid
• Licensed Money Lenders (via MLCB):
  Horison Credit reports to the Moneylenders Credit Bureau (MLCB), which is not shared with banks or CBS. This means your DCP status with Horison won’t affect your ability to apply for bank loans in the future. In fact, consolidating your debts may help improve your credit score over time.

  Here’s why:

  • Once you consolidate your loans, you’re less likely to miss payments.
  • Fewer late payments = better repayment history.
  • A single, consistent repayment plan shows lenders that you’re financially responsible.

Not necessarily. In fact, consolidating your debts may help improve your credit score over time.

Here’s why:

• Once you consolidate your loans, you’re less likely to miss payments.
• Fewer late payments = better repayment history.
• A single, consistent repayment plan shows lenders that you’re financially responsible.

• Banks:
  Yes, early repayment is allowed. However, most banks may charge a prepayment or cancellation fee. Always check the fine print before settling early.
• Licensed Money Lenders:
  At Horison Credit, early repayment is welcomed and can help reduce your overall interest costs. We offer flexible plans, with no hidden penalties, so you can settle your loan early if your finances improve.

Yes, you can.

Horison Credit understands that credit scores don’t always reflect a borrower’s current situation. That’s why:

• We assess applications based on your ability to repay now, not just your past credit history.
• We don’t impose blanket rejections on poor credit borrowers.

Whether you’ve had missed payments or loan rejections in the past, we’re here to help you rebuild your financial footing.