20-07-2011, 05:58 AM
A step in the right direction!
Jul 20, 2011
Easy-to-understand credit report launched
Consumers will be placed into 1 of 4 bands indicating creditworthiness
By Mark Tay
CONSUMERS will be able to better understand their credit reports, thanks to a service launched by DP Credit Bureau yesterday.
It will issue a consumer credit score expressed as a three digit number. The higher the number, the better the person's creditworthiness.
Scores range from 0 to 781 but will be broken down into four bands - strong, good, fair or weak - to make them even easier for consumers to interpret.
An individual's score comes from three sources: banking information, public records such as financial-related litigation and bankruptcy files, and non-bank payment data from sources like retail stores and moneylenders.
Factors such as timely payment of credit card bills and the reduction of debt will improve one's credit score.
While current consumer credit reports indicate a range of credit information such as credit card payment statuses, overdrafts and bankruptcy reports, the new DPCB report will include the extra column with the individual's credit score, making it easier to understand the credit situation in a single glance.
DPCB added that an individual's credit score changes constantly.
The DP-Delphi Score, as it is known, combines DP Credit Bureau's local knowledge of the credit market with the methodology of computing scores that tech firm Experian supplies.
Experian is an information services company that provides data and analytical tools to allow clients around the world to manage credit risk. It is also DPCB's parent company.
'We believe publishing the DP-Delphi Score on credit reports gives consumers a powerful tool for managing their finances. Once you know and understand your credit score you can take action to improve or maintain it,' said DPCB general manager Lincoln Teo.
The DP-Delphi score could also help lenders like banks.
Experian's South-east Asia managing director Dennis Martin, said: 'The power of credit scores is that they allow lenders to quickly ascertain a consumer's creditworthiness.
'The score sieves out what is important, how representative that piece of data is and then measures what weight each piece of data is given.'
DPCB organised a series of talks in the National Library last year, to educate the public about credit issues.
Mr Teo said: 'We think that it is important for consumers to really understand what credit means and what their credit report is all about, and we are continuing this exercise in 2011.'
He said the talks prompted more people to finding out more about their credit ratings from DPCB.
marktay@sph.com.sg
Jul 20, 2011
Easy-to-understand credit report launched
Consumers will be placed into 1 of 4 bands indicating creditworthiness
By Mark Tay
CONSUMERS will be able to better understand their credit reports, thanks to a service launched by DP Credit Bureau yesterday.
It will issue a consumer credit score expressed as a three digit number. The higher the number, the better the person's creditworthiness.
Scores range from 0 to 781 but will be broken down into four bands - strong, good, fair or weak - to make them even easier for consumers to interpret.
An individual's score comes from three sources: banking information, public records such as financial-related litigation and bankruptcy files, and non-bank payment data from sources like retail stores and moneylenders.
Factors such as timely payment of credit card bills and the reduction of debt will improve one's credit score.
While current consumer credit reports indicate a range of credit information such as credit card payment statuses, overdrafts and bankruptcy reports, the new DPCB report will include the extra column with the individual's credit score, making it easier to understand the credit situation in a single glance.
DPCB added that an individual's credit score changes constantly.
The DP-Delphi Score, as it is known, combines DP Credit Bureau's local knowledge of the credit market with the methodology of computing scores that tech firm Experian supplies.
Experian is an information services company that provides data and analytical tools to allow clients around the world to manage credit risk. It is also DPCB's parent company.
'We believe publishing the DP-Delphi Score on credit reports gives consumers a powerful tool for managing their finances. Once you know and understand your credit score you can take action to improve or maintain it,' said DPCB general manager Lincoln Teo.
The DP-Delphi score could also help lenders like banks.
Experian's South-east Asia managing director Dennis Martin, said: 'The power of credit scores is that they allow lenders to quickly ascertain a consumer's creditworthiness.
'The score sieves out what is important, how representative that piece of data is and then measures what weight each piece of data is given.'
DPCB organised a series of talks in the National Library last year, to educate the public about credit issues.
Mr Teo said: 'We think that it is important for consumers to really understand what credit means and what their credit report is all about, and we are continuing this exercise in 2011.'
He said the talks prompted more people to finding out more about their credit ratings from DPCB.
marktay@sph.com.sg
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