What Is The Money Lender Credit Bureau?

Have you ever wondered how money lenders grant loans?

In Singapore, before a licensed money lender agrees to lend you money, it will check your credit report using the Moneylenders Credit Bureau (MLCB) database.

If you’re wondering what is money lender credit bureau, the MLCB database stores borrowers’ information, including their previous credit history and current outstanding loan balance.

What Is Money Lender Credit Bureau?

The MLCB is the Singapore government’s financial initiative to grant all licensed money lenders access to a borrower’s loan information.

The purpose of this initiative is to allow licensed money lenders to better gauge if a borrower can repay a loan. This in turn prevents borrowers from getting into huge debts that are beyond their capacity.

When you approach a licensed money lender for a loan, it will refer to your moneylender or MLCB report to check your credit score and creditworthiness.

In Mar 2016, the Ministry of Law entrusted DP Information Group (DP Info) with the responsibility of supervising the MLCB.

In Jul 2021, the Ministry of Law appointed Credit Bureau Singapore (CBS) as the new official operator of MLCB.

It is imperative to note that the MLCB does not have access to a borrower’s transaction history for banking facilities.

What Is Included In A Loan Information Report?

A loan information report constitutes your loan repayment records compiled from other licensed money lenders.

Authenticated money lenders are entitled to check your loan information report before approving your loan. Thus, a decent repayment history or lower aggregate loan limit will improve your eligibility.

The loan information report includes the following details:

1. Personal details and employment information: The primary section of the report will include your full name and NRIC number, followed by your employment details and monthly income.
2. Exclusion list: This allows borrowers to exclude themselves from applying for unsecured personal loans.
3. Loan type: This includes details of your existing loans and their types.
4. Payment status and legend: This section shows your yearly repayment status for the existing loans that you have. Making timely repayments is favourable for loan approval.

How Often Are Loan Information Reports Updated?

Loan information reports are usually updated instantly by licensed money lenders in real time. Hence, you can view your updated loan information report the next business day.

This enables both borrowers and money lenders to be on the same page.

Who Can Access The Report?

MLCB loan information reports contain the personal and financial details of a borrower. This information is confidential, and only four parties have access to it.

They are licensed money lenders, borrowers, the Ministry of Law, and the Registry of Moneylenders.

Licensed money lenders access your loan information report from the MLCB when you apply for a loan. They also check the last time you paid your debts and your outstanding loan amount.

Borrowers can retrieve their MLCB or moneylender report for a small fee.

Lastly, the Registry of Moneylenders and the Ministry of Law have the right to check your loan details from their servers.

The Ministry assures potential borrowers of their data privacy. No unauthorised party can access your loan details.

How And When To Check The MLCB Report

You should check your credit report at least once a month. Checking your credit report regularly prevents identity theft. Occasional checking also allows you to spot and correct any discrepancies.

Here’s a guide on how to check your credit report:

Step 1: Log in to your Singpass. If you don’t have one, sign up for a new account.

Step 2: Fill in your personal information.

Step 3: You’ll be asked to choose your credit report. Remember, every borrower is entitled to one free credit report from the respective credit company.

Step 4: Next, the portal will direct you to the agency’s website. You have to answer a few questions to verify your identity, including your contact details, residence address, and credit card number.

Step 5: Retrieve your credit report after completing the above steps.

Many moneylending agencies use Singpass. It speeds up the loan procedure and allows you to get your loan within 24 hours.

Katong Credit is a licensed money lender that uses Singpass. It offers lightning-fast approvals and low interest rates.

How Can You Improve Your Credit Record?

A good credit record is essential because it helps money lenders determine your reliability as a borrower.

A high credit score indicates you are a low-risk borrower, and increases your chances of having your loan approved.

There are multiple ways you can improve your credit record. Here are some options to consider:

• Pay smart: Strive to clear your outstanding credit balance within the time given or at least pay the minimum amount. It will improve your credit record.
• Seek higher credit limits: When you have higher limits, you can lower your overall credit utilisation. This only works if you spend wisely.
• Close some credit deadlines: If you apply for too many credit options, you will inevitably miss some repayment deadlines. Consider closing credit lines that you don’t need anymore.
• Avoid applying for multiple credit cards: Applying for too many credit cards suggests you have poor money management skills. This is not good for your loan record.
• Clear your credit report errors: A single discrepancy on your credit record can negatively impact your credit score. Check your report for errors and have them corrected to improve your credit record.

How To Get A Copy Of The Loan Information Report

You can purchase your copy of the loan information report from the official website of the Moneylenders Credit Bureau for $0.50.

You can also pick up a physical copy of the loan information report from the MLCB office or Credit Counselling Singapore’s office.

How Does The Moneylender Report Affect You As A Borrower?

The MLCB loan information report allows borrowers to manage their credit balance carefully and monitor their progress.

Here are some ways the moneylender report can help you:

• Restricts the number of loans: The Moneylenders Credit Bureau restricts the number of loans a borrower can have. Approaching multiple money lenders will affect your credit score and your ability to get loans in future.
• Reminds you of your repayment capacity: Some borrowers may be unable to pay back the minimum amount of their loans. The MLCB highlights borrowers’ repayment ability and encourages them to spend within their limits.
• Calculates risks: Licensed money lenders refer to the MLCB, which calculates the risks a potential borrower presents. This allows money lenders to grant loans using a borrower’s repayment ability as a gauge.
• Reflects a good credit score: The credit report reflects your credit score and performance. So if both are good, you can borrow more.
• Improves your chances of getting other loans in future: An impressive report encourages money lenders to approve your loans in the future.

The MLCB Report Is Beneficial To All

Now that you know what is money lender credit bureau, you can see how the MLCB has benefited borrowers and licensed money lenders.

Authenticated money lenders can worry less about running their business at a loss and keep track of a borrower’s loan details easily.

On the other hand, the MLCB allows borrowers to manage their loans well and curb their loan-seeking tendencies.

Its centralised database has prevented multiple borrowers from applying for multiple loans, which could land them in serious debt.

Through this data repository, the government has managed to maintain a balance between the two parties.

The central system enables transactions to proceed smoothly and maintains transparent records in the moneylending sector.

If you need financial assistance, don’t hesitate to reach out to Katong Credit.

We are a trusted licensed money lender in Singapore that offers some of the most affordable interest rates and fees. We would be more than happy to help you in any way we can.

Contact us now or apply for a loan using your Singpass today. The entire process only takes five minutes.