Fastest Ways to Improve and Increase Your Credit Score

In Singapore's competitive financial landscape, a strong credit score, as tracked by the Credit Bureau (Singapore) (CBS), is your key to unlocking favorable loan terms and premium credit card benefits. Securing a good credit rating can significantly impact your ability to access essential financial products.

Understanding how to increase your credit score is important as it can directly translate to higher approval rates on loans, more rewarding credit card perks, and even more affordable interest rates on credit facilities. Knowing how to improve credit empowers you to take control of your financial future and save money in the long run.

If you're wondering how to improve credit score fast, or even how to improve credit score immediately, you're in the right place. We'll explore actionable strategies tailored for Singaporeans to boost their creditworthiness efficiently.

How to improve your credit score fast

If you're looking for how to quickly improve credit score in Singapore, there are several effective strategies you can implement. These methods are designed to demonstrate responsible financial behavior and boost your creditworthiness efficiently.

1. Pay off your highest interest credit card balances first

Paying off high-interest credit card balances and maintaining a low credit utilisation rate is one of the best ways to increase your credit score quickly. By paying off your cards before the billing cycle ends, you can keep your reported utilisation low, which gives you a higher score.

• Impact on credit score: Significant positive impact, especially if you have a high utilisation rate.

• Level of commitment required: Requires consistent monitoring and timely payments.

• When will I see results?: Visible improvements within a few billing cycles, typically one to three months.

>> Learn: Find out how to maintain a healthy credit profile with the 30% credit ratio rule

2. Request for a higher credit limit 

Requesting a higher credit limit from your bank can effectively lower your credit utilisation ratio, which is one of the fastest ways to increase your credit score. This strategy allows you to reduce your credit utilisation rate without necessarily incurring more debt.

• Impact on credit score: Moderate positive impact, as it improves your credit utilisation ratio.

• Level of commitment required: A single request to your bank, followed by responsible spending habits.

• When will I see results?: The impact is reflected in your credit report within a month, depending on the bank's reporting cycle.

3. Become a supplementary cardholder

Becoming a supplementary cardholder on someone else's credit card with a positive payment history is a rapid way to boost your credit score, especially if you're new to credit or need to improve credit score immediately. This leverages their established creditworthiness to benefit your own.

• Impact on credit score: Potentially significant positive impact, depending on the primary cardholder's credit history.

• Level of commitment required: Minimal, requiring only the primary cardholder's cooperation.

• When will I see results?: The positive payment history can be reported to the Credit Bureau (Singapore) within a month or two, leading to a relatively quick improvement.

4. Pay off your bills on time and in full 

Consistently paying all bills, including credit cards, loans, and utilities, is one of the fastest ways to improve credit score. Setting up auto-payments and timely reminders can prevent late payments, which negatively impact your credit report.

• Impact on credit score: Significant positive impact with consistent on-time payments, negative impact with late payments.

• Level of commitment required: Consistent monitoring and setup of automated payments or reminders.

• When will I see results?: Positive effects are seen with each timely payment reported to the CBS; negative effects of late payments are also quickly reflected.

5. Monitor and raise a dispute for credit report errors

Disputing and correcting errors on your credit report with the Credit Bureau (Singapore) can quickly improve credit score by removing inaccurate negative marks. Utilize the CBS's dispute process to resolve any errors or inaccuracies.

• Impact on credit score: Potentially significant positive impact by removing negative errors.

• Level of commitment required: Time spent reviewing your credit report and filing a dispute with the CBS.

• When will I see results?: Results depend on the CBS’s investigation timeframe, generally within a few weeks to a couple of months.

>> Learn: Understanding credit bureaus in Singapore

6. Pay off any debt collection accounts

Addressing any collections accounts by paying them off or negotiating settlements can improve your credit score. Negotiate with creditors to settle outstanding accounts and reduce negative impacts on your credit report.

• Impact on credit score: Moderate to significant positive impact, depending on the age and severity of the collections account.

• Level of commitment required: Active communication and negotiation with creditors.

• When will I see results?: Improvements are seen after the account is settled and reported to the Credit Bureau (Singapore), which can take a month or two.

7. Apply for and start using a secured credit card

A secured credit card can be a valuable tool for those with limited or poor credit histories, acting as a stepping stone to build or rebuild credit. It works by requiring a security deposit (usually S$10,000) that typically becomes your credit limit.

• Impact on credit score: Moderate positive impact, demonstrating responsible credit management.

• Level of commitment required: Initial deposit and consistent, responsible usage.

• When will I see results?: Gradual improvements are seen as the card activity is reported to the Credit Bureau (Singapore) over several months.

>> Learn: See the best secured cards in Singapore to build your credit history

Pay off your rent and utility payments

Demonstrating consistent rent and utility payment records can positively influence your creditworthiness. Explore options with your landlord or utility providers to see if you can pay off your bills with a credit card to build a positive payment history.

• Impact on credit score: Potential moderate positive impact, demonstrating payment reliability.

• Level of commitment required: Consistent and timely payments of rent and utilities.

• When will I see results?: Dependent on the reporting mechanism. Consistent payments with a credit card over several months can show a positive trend.

Add multiple types of credit facilities to your mix 

A diverse credit mix, which can include credit cards, personal loans, and potentially lines of credit, can contribute to a healthier credit score. However, it's crucial to add these responsibly and gradually over time, rather than taking on excessive debt. You’ll also need to commit to paying them off on time and avoid any late payments. 

• Impact on credit score: Moderate positive impact, demonstrating responsible management of various credit types.

• Level of commitment required: Careful planning and management of multiple credit facilities.

• When will I see results?: Gradual improvements are seen as the diverse credit portfolio is managed responsibly over several months.

Is it realistic to improve your credit score grade in just one or two months?

Your credit score, as reported by the Credit Bureau Singapore (CBS), is calculated using a proprietary algorithm that analyses your credit usage patterns. This means that predicting the precise rate of improvement can be challenging, as the algorithm's specific factors and weightings are not publicly disclosed.

While implementing strategic actions like paying down high balances or disputing errors may lead to noticeable improvements within a month or two, relying solely on quick fixes is not a sustainable long-term strategy. 

Instead, building healthy financial habits is far more effective. This involves consistently managing your payment history, maintaining a low credit utilisation ratio, and responsibly handling existing debts. By focusing on these core principles, you'll establish a solid foundation for long-term credit health and see more consistent improvements in your credit score over time.