Credit Score Myths Debunked: What Banks Really Look For

Why It Matters

Understanding what actually affects credit decisions helps consumers target the right behaviors—such as managing debt-to-income and credit use—instead of chasing a single number, which can improve loan access and borrowing costs. Lenders’ broader assessments mean responsible, measured credit-building matters more than avoiding credit entirely.

Summary

Experts from Credit Bureau Singapore and MoneyHero debunk common credit-score myths, stressing that a bureau score is one of many factors lenders consider—income, employment, collateral, public records and deposit history also shape lending decisions. Not having a score (a thin file) doesn’t automatically bar you from credit, though it makes risk assessment harder; bankruptcy or adverse public records are the main disqualifiers. Applying for many unsecured products in a short span can hurt approval odds because multiple hard inquiries and frequent applications raise red flags. Consumers can build credit safely by using modest, manageable credit lines, keeping utilization low (around 30%) and avoiding unnecessary hard pulls.

Original Description

Your credit score impacts everything. Experts from Credit Bureau Singapore and MoneyHero Group bust the biggest myths, from "clean" profiles to unused cards. Are you managing your financial reputation correctly?

Synopsis: Every Monday, The Business Times breaks down useful financial tips.

Highlights:

01:37 Top credit score myths

05:40 Why NOT having a credit score hurts

07:35 How to build credit without going into debt

09:55 How often should we pull our credit scores?

15:29 Review to reporting framework to note

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