Getting a Personal Loan Approved in Singapore Even With a Bad Credit Score – Yes, it’s Possible!

Personal Loan Approved Even with Bad Credit Score

Getting a Personal Loan Approved in Singapore Even With a Bad Credit Score – Yes, it’s Possible!

Having a bad credit score can make it difficult to get a personal loan in Singapore. However, this doesn’t mean that it is impossible. There are still options available for those with a less-than-perfect credit history. 

In this article, we will explore the possibilities of securing a personal loan approved even with a poor credit score. We will discuss the factors affecting your score, alternative loan options such as borrowing from a licensed money lender in Singapore, and steps to improve your chances of getting the loan. So, if you need financial assistance but are worried about your credit score, keep reading to discover how you can still take out a personal loan in Singapore. 

What’s a Credit Score?

A credit score is a numerical representation of an individual’s creditworthiness. It is used by licensed moneylenders and finance companies to assess the risk of lending money to someone.

Credit ratings are typically generated by credit bureaus (CBS) or the Moneylenders Credit Bureau, based on information from the credit report which includes factors such as payment delays or loan defaults on credit facilities like credit cards or personal loans. It is crucial to regularly check your credit score to assess your financial standing within the score range. The score range varies, but a higher score indicates a lower risk of defaulting on a loan and can result in lower interest rates. 

What Is a Bad Credit Score?

A bad credit score refers to a low credit rating that indicates a borrower’s inability to repay the loans. 

What are the Factors Affecting Your Credit Score? 

Several factors can cause a credit rating to drop. 

1. Missed or Late Loan Repayment

One of the most common reasons is late or missed payments on credit cards, loans, or other debts. When a person consistently fails to repay on time, it is viewed as a sign of financial irresponsibility and can significantly lower their credit score.

2. High credit utilization

High credit utilization refers to the amount of credit a person is using about their total available credit. If someone is maxing out their credit cards or using a large percentage of their credit limit, it can indicate that they are relying too heavily on credit and can be seen as a risk to potential lenders.

3.  History of bankruptcy, foreclosure, or judgment 

Having a history of bankruptcy, foreclosure, or judgment against them can also cause a credit score to drop. These negative events indicate financial instability and can greatly impact a person’s creditworthiness. 

4. Taking out many loans in a short period

Applying for multiple credit accounts within a short period can negatively impact credit scores as it can be seen as a sign of being desperate to take out a loan. 

How Can I Get a Personal Loan Even With A Bad Credit Score?

In Singapore, it may be challenging to obtain a loan with a bad credit score. Financial institutions typically consider credit scores when evaluating loan applications. However, there might still be options available such as:

1.  Restructure Your Debts

Boost it by settling these debts first, improving your chances for a personal loan. It’s a good idea to call your bank in Singapore to adjust your debt. This involves negotiating with your bank to lower interest rates or extend your loan term. A longer repayment period reduces monthly payments, which can be a big help. Banks are often open to debt restructuring. Options include a debt consolidation plan, which combines debts into a new loan with lower interest.

2. Take Smaller Loans

Apply for smaller personal loans to increase the likelihood of approval.  Taking out one large loan can be tough due to a poor credit score, as you need to demonstrate competence with a larger sum. Yet, for smaller loan amounts, credit history matters less, allowing approval despite a weak score.

Complete repayment loans on time are crucial, showcasing debt-handling ability and lifting your credit score. This enhances prospects for a large personal loan in the future although multiple iterations might be needed before approval from legal financial institutions.

3. Consider applying for a loan from a licensed money lender

If you have bad credit, it might be beneficial to consider getting a loan from a licensed money lender in Singapore. These lenders specialize in providing personal loans to individuals with less-than-perfect credit histories.

Before applying, it is important to check your credit or get a copy of your credit report from the MLCB or Credit Bureau Singapore to have a better understanding of your financial situation. A licensed money lender can evaluate your loan application and provide you with the necessary funds, helping you to improve your credit score over time.

Be careful when choosing a lender. Don’t be tricked by loan sharks who will offer you a larger personal loan immediately. It’s best to do your research before taking out loans.


Getting personal loans with bad credit ratings in Singapore might be tough, but it’s possible. This article explained why credit scores matter and how to still secure a loan even if your score isn’t great. By understanding how credit scores work, dealing with late payments and too much debt, and considering a licensed money lender in Singapore, you can increase your chances of getting a loan and improving your credit score over time.

Being careful with who you borrow from and managing your money responsibly is really important. Despite the challenges, you can still get personal loans in Singapore with a bad credit score if you take the right steps.

If you like this article, you may want to read this article about 6 Crucial Terms and Conditions for Your Foreigner Loan Agreement You Need to Learn Before Signing.


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