What is a Credit Report and How It Affects Jobseekers
Contributed by Credit Bureau Singapore
Average reading time: 5 mins

Key points:
1. A credit report is a record of your credit payment history compiled from different credit providers.
2. Credit reports help employers to assess a potential employee's financial stability.
3. Subscribing to credit monitoring services may help.
As we all know, employers love to conduct background checks before interviews. But, did you know that they do so to not only check that your resume is legitimate, but also to check on your current financial stability?

Your credit worthiness is assessed via your Credit Report. Hirers will either ask you to purchase a copy of the Credit Bureau report directly or receive your written consent to allow the company to retrieve your Credit Bureau report for pre-hire employment checks purposes.
What is a Credit Report?
A credit report is a record of your credit payment history compiled from different credit providers.
Credit Bureau Singapore provides credit reports for consumers who hold credit facilities with our CBS Members in Singapore. The Monetary Authority of Singapore (MAS) provides regulatory guidance and support to CBS to strengthen the integrity and transparency of Singapore's financial sector.
What you should know as a jobseeker?
CBS collects credit-related information amongst participating members and presents a more complete risk profile of a customer to credit providers as well as to employers.

CBS provides employers with reliable credit screening tools to make well informed hiring decisions, closely regulated by the Monetary Authority of Singapore (MAS). Under MAS's Guidelines on Fit and Proper Criteria, be it an institution, exempt financial institution, exempt entity or a fund management company, they are obligated to do employment checks which include credit checks on pre-hires.
Why do employers check your credit report?
Companies tend to hire financially stable employees who are able to focus better and be more productive, while eliminating any unnecessary performance distractions.

By evaluating the individual's credit health before hiring decisions are made, employers will be able to filter out any adverse payment history or possible recent law litigations and bankruptcy record. Poor credit score or report indicates that the employee might be financially irresponsible and also acts as a warning sign to companies from considering the candidate.
What do employers look out for in credit reports?
Non-Scored or Public records. Employers will look out for public records such as past and/or existing writ of summons, bankruptcy record filed against you. This information will be retained in the credit report for 5 years from the date of discharge from bankruptcy.

Bureau Score. The Bureau Score is calculated from an algorithm based on information in your current available credit data and is a fluid number which may change from time to time in tandem with changes in your credit information. Lenders will assess the Risk Grade and Probability of Default to determine if you are a high risk borrower.

Account Status History. Lenders will be able to use this information to assess your repayment behaviour for the past 12 months. This information is displayed on a rolling 12 months basis (with the most current cycle on the left) while closed accounts will have the last 12 months payment status history as at the date of closure displayed for 3 years.

In reference to sample credit report and explanation: https://www.creditbureau.com.sg/enhanced-consumer-credit-report.html
Credit Monitoring Service
You can also subscribe to a credit monitoring service like My Credit Monitor (MCM). It is a subscription service tool that helps consumers to monitor their credit report over a period of 6 or 12 months tenure. It helps to fight against identity theft by detecting any suspicious activities or changes that can potentially affect the consumer's credit reputation. MCM will alert changes and send notification for any predetermined activities on the consumer's credit report, providing the earliest possible indicator via SMS or emails.

Should you have any questions on your credit report, you can contact Credit Bureau Singapore's Consumer Services Officers at 6565 6363 or send in your enquiries to consumer_services@creditbureau.com.sg

Lastly, follow Credit Bureau Singapore's (CBS) Facebook link at: https://facebook.com/creditbureausingapore for more of such updates and even tips on how to stay credit active.
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