If you’ve inquired about a Moneylenders Credit Bureau (MLCB) Report, chances are you’re considering taking out a loan.
A Moneylenders Credit Bureau (MLCB) Report is a comprehensive report containing an individual’s credit or financial history. Most commonly, money lenders use it as part of their lending criteria.
A detailed moneylender report can reveal bankruptcies, defaults, judgments, and other important financial information.
What Is The MLCB?
The Moneylenders Credit Bureau Report is a credit report that contains the personal and financial data of a borrower. A money lender will ask for this report before loaning money to a borrower.
The purpose of an MLCB loan information report is to help the money lender assess whether the applicant has enough income to pay back the loan.
The lender will also look at what type of debt the applicant has and how many times he or she has applied for a loan in the past few years.
If you’re applying for a loan from a money lender, you can expect to receive a request for an MLCB loan information report before any formal application takes place.
How Do I Get My MLCB Report?
You can visit the nearest MLCB office and present your NRIC to get your moneylender report.
You will then be asked to fill out a form with your name, address, contact number, and other details.
You can also download the application form from the MLCB website or any Moneylenders Credit Bureau office.
What Does An MLCB Report Include?
An MLCB report includes all the information about a borrower that money lenders require to make an informed decision about whether or not to grant him or her a loan. They include:
- Account information: This refers to the date opened, status (i.e. open or closed), current balance, current payment amount, and payment history. Note that this information may not be available for all accounts (e.g. accounts over seven years old).
- Public records: Any public records associated with your name and address (e.g. bankruptcies, judgments and liens). If there are any public records on file related to you, they will be in the report unless they have been deleted by court order or by request from a creditor or debt collector.
- Personal information: Information from public records such as name, address and NRIC number.
- Credit score: This three-digit number summarises information from your credit report. A high score indicates a low risk of defaulting on a loan.
- Civil judgments: This would be judgments against you in court cases filed by creditors or collection agencies seeking payment on past due debts. Judgments can also be filed against people who cannot pay child support, alimony or other court-ordered payments.
- Bankruptcies: Filing for bankruptcy is an option when you’re overwhelmed with debt and can’t pay back what you owe on time. Each bankruptcy stays on your credit report for 10 years after it was filed. Multiple filings are grouped in one entry called “bankruptcy”.
What Loans Are Not Reported To The Credit Bureau?
If you take out a loan from a licensed money lender, it will be reported to the Credit Bureau. However, some types of loans do not that have to be reported. These includes:
- Personal loans from family members or friends
- Mortgages from banks or building societies
- Contractors and self-employed workers who get paid by the job (rather than weekly or monthly)
- Student loans and grants that you repaid in full before they reached their due date
Does Buying Credit Report Affect Score?
The short answer is no. You can buy your credit report, but it won’t affect your score.
If you’re applying for a loan or credit card and got declined, one of the reasons could be that your credit rating is too low.
The lower your score, the less likely you will get approved for a loan or credit card.
Buying your credit report will not improve this situation, but it may help you understand why you got declined and what steps you need to take to improve your credit rating so you can get a loan from a bank or licensed money lender.
How Do I Get My Credit Score?
There are several ways to check your credit score. Some of them include:
- Get an annual free copy of your credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion.
- Use an online service such as Credit Karma or Credit Sesame (both have free options) to get a snapshot of your current credit score and report information.
What Is A Good Credit Score?
A good credit score is one that is high enough to qualify for a loan product you want. The higher your score, the better your chances of qualifying for lower interest rates and better loan terms.
Your credit score depends on the information in your credit report — including any late payments or outstanding debts. You must manage your accounts well to maintain good standing with the bureaus.
The credit score ranges from 1,000 to 2,000, with 1,000 being the lowest and 2,000 being the highest.
A score of 2,000 or any number close to it is a good credit score, while a score between 1,000 and 1,723 is a bad credit score.
This means licensed money lenders are not likely to approve your applications for loans and lines of credit.
What Is A Licensed Money Lender?
A licensed money lender is a person or entity who provides loans to people in Singapore. Licensed money lenders can be individuals, sole proprietorships, or companies.
To become a licensed money lender, you must first apply to the Central Bank of Singapore through its Moneylending Branch (MBBL).
The MBBL will then assess your application based on factors such as your net worth, credit history, and business plan before deciding whether to grant you a license.
A licensed money lender will look at your MLCB report to get a clear idea of your credit or financial history before they decide whether to grant you a loan.
On your part, you can use the report to understand how you can improve your credit score so you can increase your chances of loan approval in future.