How to Have a Stronger Credit Rating: 3 Simple Steps

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When you have a good credit rating, you can do a lot with it. You will have a better chance of approval if ever you decide to acquire a loan from a bank for a major purchase such as a house or flat, a car, or some big luxury items. If you ever decide to start a business of your own in Singapore, you should also be able to get a bigger loan from numerous financial institutions if your credit rating is strong.

But before you have a good credit rating, you have to build a credit history first. Your credit history is the basis for your credit rating and will show lenders your ability to pay for items that you buy.

1. Open an account with a bank

If you have a bank account, whether it’s a savings account, a checking account, or both, this will bode well for your reputation with lenders. Lenders see individuals with bank accounts as more stable and consistent. If you can also show that your bank account is active, then this would also be a good sign and will improve your credit history. Additionally, if credit card companies see that you have an active bank account, then this will increase your chances of being approved for a credit card. Manage your credit cards well and achieve a high credit rating.

 2.       Get a credit card

If you don’t have a credit card yet, then it’s time for you to get one. If you are understandably wary about getting a credit card, you need not use it for most purchases you make. You can decide to keep it only for emergencies, for instance, or when you want to buy a major appliance. Apply for credit cards with established companies – this is a crucial step to acquiring good credit rating. Of course, you have to make sure that you pay for whatever you purchase in full or at least pay off the balance on the card each month.

 3.       Manage your credit card well

Ultimately, having an excellent credit rating all goes back to the credit card (or cards) you have. If you can, try to pay your credit card bills in full – and on time – each month. This goes a long way to letting lenders know that you take your account seriously. Additionally, when you make purchases, make sure you can afford them. If they are big purchases, then make an estimate of how much you have to pay each month so you can set this amount aside. In the same vein, you have to remember to use your cards regularly. An unused credit card may actually lower your credit score.

It is also good to make a list of your expenses and payables each month, as well as your receivables. This way, you can keep better track of your finances and will have a greater chance of managing your credit card efficiently. List down how much you would like to save each month. This will also help you be more prudent with your spending and allow you to stick to your estimated budget.


A credit card is a useful tool in improving your credit score if you know how to manage it properly. Improve your credit rating and you will have a better chance of getting bigger loans to improve your life.


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