What A Moneylenders Credit Bureau (MLCB) Loan Information Report Means

A Moneylenders Credit Bureau (MLCB) report is a document that shows an individual’s loan history.

It includes all the loans that person has and his or her repayment history during the past 12 months.

An MLCB loan information report is a valuable document for anyone who wants to get a loan. It can help you get the best interest rates and terms possible because it shows how reliable you are when repaying your debts.

This guide discusses this moneylender report in detail. Read on to learn how the MLCB works, what the report includes and doesn’t, and how you should get yours.

We’ll also compare the moneylender report with your credit score report, so keep scrolling below.

It could save you hundreds of dollars in interest payments over the duration of your loan.

What Is The MLCB?

The Moneylenders Credit Bureau (MLCB) is an institution created in 2016 by the Ministry of Law in Singapore.

This institution works as a central repository of information regarding your loan history.

Therefore, everything related to your previous loans, from the type of loan to principal sums and reimbursements, is on the MCLB report.

In early 2021, access to this information changed to include all legal money lenders in Singapore. Therefore, any agency on the island can check your creditworthiness before approving a loan.

The purpose is straightforward: Stopping Singaporeans from accumulating any more bad debt.

So how does the MCLB work?

All licensed money lenders in Singapore are members of the MCLB.

These agencies input information regarding every loan on their databases, from the borrowed sum to frequency and repayment records.

All that info is uploaded the next day after you make a transaction.

That’s how other licensed money lenders in Singapore can gauge your creditworthiness based on these transactions. However, sharing the information on your moneylender report with third parties is illegal.

Only four parties can access your MCLB report:

  • Borrowers
  • Licensed money lenders
  • The Registry of Moneylenders
  • The Ministry of Law

Important: You can rest assured that the info on your moneylender report is perfectly safe.

How Do I Get My MLCB Report?

On 1 Jul 2021, Credit Bureau Singapore (CBS) became the new MLCB operator per Ministry of Law regulations. That means you can obtain your MLCB report by accessing the CBS website.

Your other options include:

  • The MLCB website
  • A local MLCB branch
  • Credit Counselling Singapore (CCS)

You can also retrieve your report from the Singpass website. Here’s how:

  • Sign into your account.
  • Add your personal information.
  • Choose the credit report you need (in this case, the MLCB report). You can obtain one free report, but you must pay for the subsequent ones.
  • The Singpass website will redirect you to the MLCB website, where you must pass the identity-verification screening.
  • After filling in the requested data about your identity, you will get your moneylender report.

Why should you go through the trouble of downloading and reviewing this document?

Find the answer in the section below:

What Does A MLCB Report Include? 

Your MLCB report includes all the data about your previous loans:

  • Personal information. The first section of your moneylender report discloses personal information, including your name, NRIC number, employment status, and income.
  • Exclusion list. This section allows you to register on a self-exclusion list, which involves auto-removing yourself from applying for unsecured personal loans. Debt consolidation loans are not included in this category, though.
  • Loan type. This third section is the most important, as it details your current loans with licensed money lenders across the country. Note that the transactions aren’t precisely live because your loan reimbursements appear within a business day.
  • Payment status. The payment status is crucial as well. Legal moneylending agencies can see how you’ve repaid your installments on unsecured loans during the past 12 months. Therefore, diligent reimbursements increase your chances of a new loan.

Now, let’s answer the question from the previous section. Why should you apply for your MLCB report?

If you want to apply for a new loan, you should understand how money lenders evaluate your report. For example, if your 12-month payment status reads as “bad debt”, you won’t be eligible for a considerable sum.

Why is that important?

Applying for a loan without meeting the eligibility criteria entails a loan rejection. And every loan application rejection is registered on your credit score.

This means failing to appraise your situation correctly lowers your credit rating.

And that makes you less likely to obtain a convenient loan in the future.

So the first reason to apply for a moneylender report is to assess your financial situation correctly and increase your chances of getting a loan.

But there’s another reason to do it.

Some entries on this moneylender report may be incorrect. Therefore, reviewing your loan-related data constantly allows you to correct these mistakes.

Otherwise, you can miss crucial information that can affect your future financial reputation.

Does Buying A Credit Report Affect Your Score?

Buying your credit report does not affect your credit score because it is not a new credit application.

As we explained in the previous section, frequently applying for new loans will lower your credit rating because this practice shows:

  • Financial desperation
  • Difficulty in managing your finances

However, purchasing your credit report shows financial responsibility. It shows you’re taking an interest in your financial situation and want to be a diligent borrower in the future.

Remember: Experts advise Singaporeans to check their MLCB report at least once yearly to avoid identity theft.

From that perspective, it wouldn’t make sense for your credit score to plummet each time you buy that report.

What Is A Licensed Money Lender?

A licensed money lender is a company that lends money to borrowers with the expectation that the loan will be repaid with interest.

Licensed money lenders must obtain a license from the government to operate legally.

Each type of lender has its eligibility requirements and terms of repayment. In some cases, licensed money lenders may have more advantages than banks.

  • Banks typically conduct more research into your background before approving your loan.
  • Bank loans may have lengthier approvals, especially if you apply for a larger sum.
  • Some bank loans have costly early repayment fees.
  • You may have to face more stringent eligibility requirements. For instance, some banks in Singapore only grant loans to people aged 21 to 65. Others adopt a minimum income policy of $30,000 per year.

In comparison, licensed money lenders in Singapore:

  • Are more lenient about your financial past, checking your current ability to reimburse a potential loan.
  • Have seamless, fast approval processes. Most licensed money lenders in Singapore can approve your loan within a business day.
  • They are more lenient with eligibility requirements. The minimum age requirement is often 18 instead of 21, and there’s no maximum age limit. Your income isn’t limited to $30,000 per year, though your earnings will influence your loan quantum.

On the other hand, banks have lower interest rates and can grant you larger sums. For instance:

  • A personal loan from a bank can be up to 10 times your monthly income.
  • A personal loan from a legal money lender is capped at six times your monthly earnings.

That said, you should carefully consider all options before applying for a loan.

Warning: Never get financial assistance from a loan shark.

Licensed money lenders in Singapore offer an extensive rangeof financial products that can solve your financial difficulties seamlessly and, most importantly, legally.

Which Loans Are Not Reported To The Credit Bureau? 

Credit loans don’t appear on your moneylender report. However, they can appear on your credit score.

Remember: Your moneylender report and your credit history report aren’t identical. Even if you can get both documents from CBS, your credit bureau score includes all the details regarding your financial history, including:

  • Your bill payment history
  • Open credit facilities (including credit cards)
  • Bankruptcy status
  • And more

Note: Some credit issuers may not appear on your credit bureau score either. For example, banks like Citi don’t report to personal credit bureaus. Furthermore, American Express only reports delinquency or negative information.

That said, a bank or licensed money lender may check your credit score when applying for a loan.

Following the same logic as in the case of retrieving your MLCB report, you should also check your credit rating to:

  • Correct potential errors
  • Prevent identity fraud
  • Gauge a realistic loan sum you’re eligible for
  • Improve your credit score

That brings us to the following point: learning how to check credit scores.

How Do I Get My Credit Score?

You can check your credit score using the following methods:

  • Visit the Singpass website and fill in your information. Afterwards, pick the credit score report you want from CBS.
  • Go to the Credit Bureau Singapore website. You can buy your credit score report online for $6.42 using your Visa, Mastercard, or eNETS.

You can also get your credit score for free once you apply for a loan.

Here’s how that works:

  • You choose a licensed money lender and apply for a loan.
  • You wait for the approval notification.
  • Whether the lender approves your request or not, that notification tells you how to obtain a free credit bureau score within 30 days.

What Is A Good Credit Score? 

A credit score is a number that reflects the likelihood that you will repay a loan. The higher your score, the lower the risk you pose to lenders.

A good rating depends on the scoring system being used. So what is a good credit score in Singapore?

  • A score of 1,844 to 1,910 is considered good.
  • A score of 1,911 or above is considered excellent.

Each score range is correlated with a specific probability of default. The highest interval (1,911-2,000) is associated with a default probability between 0% and 0.27%.

That means people with excellent credit scores are less risky. Therefore, you can obtain more advantages:

  • A good credit score can help you qualify for loans with low interest rates and favourable terms.
  • It can also help you save money during a loan tenure by reducing the amount of interest you pay.
  • If you have a good credit score, you may also be able to qualify for credit cards with generous cashback or travel reward programmes.

A good credit score can open up many doors and opportunities, so it’s essential to understand what factors impact your score and take steps to keep it strong.

The last score range has a large interval that spans from 1,000 to 1,723, while the default probability extends from 3.45% to 100%.

That’s why you should work hard to climb as high towards the upper limit as possible if your rating is in that range.

Here’s how:

  • Pay your bills on time.
  • If you have outstanding debts, work to repay them. You can consider a debt consolidation loan, credit counselling, or limiting your other expenses.
  • Don’t apply for too many loans.
  • Close unused credit facilities, but keep one open to show you’re a diligent borrower.

Your Moneylender Report Is A Useful Tool

Your MLCB and credit score reports are a great way to understand your credit score and borrowing history.

When you understand that, you can take steps to improve your credit score and borrowing options. You can also apply for the best financial options for your needs.

That said, even if your current situation is desperate, you should never work with a loan shark.

At Horison Credit, we offer loans for people with all credit scores. Apply today and get started on improving your financial future.

Contact us now or apply for a loan with us today.

 

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