Easy-to-understand credit report launched

[Musicwhiz]

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

[egghead]

When I saw the posting list, I saw "Easy-to-understand credit report launched by Musicwhiz". I thought wow...

[Jeff]

more info from today's Business Times


Second consumer credit bureau opens

By SIOW LI SEN

(SINGAPORE) A second consumer credit bureau, DP Credit Bureau, has started operations here to provide credit reports on individuals, sourcing their payment records from both bank and non-bank entities such as moneylenders and furniture stores.

While it will have a wider data base, the DP Credit Bureau has not been able to sign on DBS Bank, the biggest local bank as a member.

'The key benefit to lenders is the score's extensive base of information from both banks and non-bank sources, as well as its predictive accuracy,' the firm said yesterday.

According to Lincoln Teo, general manager, DP Credit Bureau, it has 1.2 million credit records from its six bank members and about one million credit records from non-bank sources.

Its six bank members are OCBC Bank, United Overseas Bank, Sing Investments & Finance, ANZ, Bank of China and Diners Club.

The non-bank sources come from the repayment data contributed by about 700 businesses that are members of sister company DP SME Commercial Credit Bureau including cooperatives, retail stores such as furniture shops and moneylenders.

Its rival Credit Bureau (Singapore) Pte Ltd, which has been around since 2002, gets the credit records of over 1.5 million consumers from its 25 financial institution members.

Both DP Credit Bureau and Credit Bureau (Singapore) are gazetted by the Monetary Authority of Singapore.

DP Credit Bureau said the credit report has a credit score called the DP-Delphi Score as a three digit number - the higher the number, the better an individual's credit worthiness.

The DP-Delphi Score is a joint initiative of DP Credit Bureau and the world's largest credit reference agency, Experian.

On the impact of the absence of DBS Bank, Dennis Martin, managing director Experian, South-east Asia said: 'Most of us have multiple banking relationships.'

DBS spokeswoman Karen Ngui said Credit Bureau Singapore, as Singapore's most established consumer credit bureau has served the bank's consumer risk management needs well over the years. 'With 25 members, Credit Bureau Singapore has an extensive database and at present, we do not see the need for the services of a second credit bureau,' said Ms Ngui.

'On the corporate front, over the years, our SME lending experience has guided our marketing and lending practices well. Joining a corporate credit bureau would be an option DBS would consider only if it has a robust and extensive database that can supplement our present insights,' she said.

Mr Martin said in terms of predictive accuracy, the benefit of the DP-Delphi Score is that it uses an extensive base of information from both bank and non-bank sources.

By acquiring and analysing a variety of data sources it is able to get a much more accurate picture of an individual's payment behaviour and their corresponding credit risk, he said.

'For instance, an individual could be meeting their monthly credit card repayments but at the same time, be in default on several retail store cards or be facing litigation due to a prolonged failure to pay their furniture instalment bills.'

The DP-Delphi Scores has a range of between 0 and 781; the firm said the overwhelming majority of consumers have a score that falls between 220 and 781. The scores are banded into four rankings to make interpretation by consumers easier - strong, good, fair or weak.

Consumers can buy a copy of their credit report for $2.50.

[yeokiwi]

Has anyone paid $2.50 to buy your own credit report?

[piggo]

all my outstanding loans are with DBS... won't that mean my credit rating would be perfect since DBS isn't sharing my info

[brattzz]

standard chartered does it for free i think...

[Temperament]

Singaporeans may be in a few years time, monitor very closely for credit worthiness like the Americans. No credit report, no loan. Hey retired old man like me how to get credit report? How to get loan? Will any collateral do? Will my 2 HDB house toilet counted? Ha! Ha!