With effect from 1 December 2013
Financial Institutions (FIs) to conduct credit bureau and income checks before increasing credit limits.
What does a credit bureau check involve?
The FI will obtain the borrower’s credit-related information from a credit bureau, namely Credit Bureau (Singapore) Pte Limited or DP Credit Bureau Pte Ltd. This includes information on the borrower’s monthly repayment behaviour, and whether he has defaulted on payments or has declared bankruptcy in the past. With effect from June 2014, the FI will also obtain information on the borrower’s outstanding debt and credit limits across all FIs from the credit bureau(s).¹
¹ See here for information on how a borrower’s aggregate credit limits and debt across all FIs are computed.