Bad credit loan Singapore. How to acquire one?

Man seeking professional help for bad credit loan Singapore with a bad credit loan file on the table

If you are having cash flow problems and require a loan, having a healthy credit score is a prerequisite. If you have a bad credit score, getting a legal loan in Singapore from banks, financial institutions, and licensed money lenders can be challenging.

Definition of bad credit loan Singapore

Bad credit loan Singapore is catered for people with a bad credit history or who have little or no credit history at all. These loans usually come with higher interest rates and the quantum is also lower. This helps to mitigate the risk of default payment on the loan. The good news is even with a bad credit score, you are able to get a legal loan in Singapore.

What defines a bad credit score?

In Singapore, your credit score ratings are determined by the Credit Bureau of Singapore. It’s a 4 digit score that is rated based on past loan payment history and the frequency of delinquent payments. The highest score is 2000 and the lowest 1000. You can purchase a copy of your credit history report for a nominal fee online.

3 ways to improve a bad credit score

Getting your bad credit score back on track is possible, nevertheless, it will require some time to get back on track. So be patient! It’s not an overnight task as it takes time to improve your credit score. It’s good to work on your credit score as early as possible, in case you need to take a loan due to emergency reasons. Let’s take a look at how to give your credit rating a positive boost.

#1 Go for Credit Counselling

You can start off by visiting the credit counselling of Singapore if you are facing financial difficulties due to outstanding debts. Their trained counsellors will provide debt advice and a list of possible courses of action, for reducing your outstanding debts. 

During the session, the counsellor will assist you to understand your current situation and walk you through the process of managing and paying off your debts. This involves drawing up a monthly budget based on your income and expenditure and then narrowing it down to your payment capability. A suitable debt management plan will be finalised. Finally, they negotiate on your behalf with the relevant agencies.

#2 Make Full Repayments

Make it a habit to pay all credit bills and loans in full on a timely basis, failing which will result in late payment penalties. This will damage your credit score further. But if you continue to pay according to your repayment schedule, you will be on track with all payments. Hence, your credit score will improve slowly and steadily, indicating a good paymaster.

#3 Restructure your Debts

Consolidating your debts is the easiest and fastest way of improving your credit score. You combine all outstanding debts into a single loan with the same interest rate. This will enable you to focus on one lump sum payment instead of a few and as a result, your credit score will improve – No more numerous messy payments to follow-up!

Getting a personal loan with a bad credit score

The general rules for getting a legal loan in Singapore are pretty much standard. If you have a bad credit score, you may find it difficult to get your personal loan approved. Below are some viable options that you can explore.

Check your eligibility

Make sure that you are eligible for getting a legal loan in Singapore. Licensed money lenders will provide a loan of up to 6 times your monthly salary and the minimum age is 18 years old. Banks, on the other hand, will not provide any loans if your annual salary is below $20,000.

Make a list of all providers

Do your own research and shop around for the most suitable lender in the market. There are a number of independent online matching platforms offering professional services for the most competitive loan offers across different licensed money lenders and banks in Singapore.

Apply one by one

Avoid applying for too many loans at one time with banks or licensed money lenders as this reflects financial desperation and will damage your credit score even further. Take small loans to minimise the risk of default payments and increase your chances of getting future loans.


At Elite Investment & Credit Pte Ltd, we will guide you to rebuild your credit health gradually, stirring it in the right direction.


The information contained on this website is not intended as a substitute for advice from a licensed professional. We do not guarantee the accuracy, completeness, suitability, or validity of any information provided on this website. We will not be responsible for any errors or omissions on the site nor will we be liable for any loss or damage caused by reliance on any information obtained through this website.

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