If you have an emergency or financial flow issues, one of the go-to options is a personal loan in Singapore. However, if your past mistakes have pushed down your credit score, you might be wondering if it is possible to access a personal loan, as well as the amount you can get from licensed financial institutions or banks.

Your credit score is the single most crucial factor when applying for loans and it can be challenging to borrow money when it is in the lower range, especially from licensed loan providers like banks. Well, all is not lost because we have the best suggestions for you.

Keep reading our guide for how to get a personal loan in Singapore with bad credit. We will also list some expert tips for improving your credit score in the case of any rejected applications.

What is a Bad Credit Score?

The personal credit scores of individuals in Singapore are calculated by the Credit Bureau Singapore. The score is a 4-digit figure based on several parameters, such as your previous payment history, and shows the likelihood that you will default on loans.

The highest score on the scale is 2,000, while the lowest is 1,000. If you have the highest credit score or anything close to 2,000, the credit score in Singapore is considered good. However, scoring between 1,000 and 1,723 is deemed to be a bad credit rating, and you are considered a high-risk party “HH.”

If you are curious or unsure about your current credit score, you can read our helpful guide on how to check your credit score in Singapore.

What Contributes Towards a Bad Credit Score?

A number of factors impact your personal credit score, and it is vital to know how it is calculated. Take a look at the below table which outlines the main factors used to calculate credit score, so you know what to look out for before applying.



The credit account history

This is perhaps the most important factor when calculating credit scores for Singaporeans. The better the credit account history, the better the score.

Your recent credit activity and number of credit applications

If you make very regular applications for loans, the credit bureau sees like you are stretching yourself. They view the multiple loan applications as a red flag, and it pushes the score down.

Account delinquency

This is another essential factor when your credit report is being prepared because it captures how effectively you have been making payments. For example, have you been making loan repayments late? Have you been declared bankrupt? If the answer is yes to any of the above, then your score will go down.

Credit utilisation pattern

This demonstrates how you have been using different lines of credit, from loans to credit cards. The aim is to try and identify changes or unpredictability in financial or money spending patterns, which loan providers see as a red flag.

How Can I Apply for a Personal Loan in Singapore with Bad Credit?

Now that you know what a personal credit score is and the factors that affect it, the truth is that improving it is not a quick fix thing. Before applying for a personal loan in Singapore, you should firstly make sure you qualify and fit the eligibility requirements of the bank or financial institution. Then, you can start trying out the following options:

Borrow From a Credit Union

Credit unions in Singapore come in handy to assist when one needs a personal loan, but the credit score is poor. They have more flexible terms and conditions than banks and other licensed institutions because they are classified as non-profit entities. Therefore, they are able to work with clients who are considered riskier by banks. You might want to compare several credit unions because their terms and conditions, such as monthly payments and interests, for loans differ.

Consider a Home Equity Loan

If you have a home, it might be possible to get some money against its equity. It can be a good channel to get some funds if your application from a bank or other financial institution is declined. In Singapore, home loans come with fixed interest rates and terms and conditions for repayment. They also allow the borrower to repay over a long period, up to 30 years. If itemised, the interest can be deductible from your taxes.

What you need to note about home equity is that your home becomes the collateral. So, you need to be extra careful because failing to repay the loan could result in your house getting auctioned and a bad score.

In Singapore, there are some home equity loans with fees while others require one to reach a significant level of equity to qualify. Therefore, it will be good to research these loans well and settle for the most appropriate option for your situation.

Use Lendela to Apply for a Personal Loan

Although some loan providers will automatically stamp your loan applications rejected if the credit score is bad, there are also others who might be willing to work with you. For most people, how to get these bank and financial institution options is the challenge, but we have the best method for you: using Lendela.

Lendela is a loan comparison site that was developed for the sole purpose of simplifying the process of a loan application. Instead of taking hours or even days trying to make the application for a personal loan in Singapore with bad credit, Lendela makes it a few minutes affair. So, here is how it works.

To use Lendela, all you need to do is visit our website and submit a short application. This will only take a very short moment. Once you provide all the required details, Lendela sends the application to different banks and financial institutions, but we do not do this blindly.

Instead, we use an advanced matching algorithm that helps to check a variety of renowned banks and financial institutions who are willing to work with your profile. So, if you have a bad personal credit score, the application will be sent to the loan providers who are willing to take the risk.

Then, the banks and financial institutions  who are okay with your details get back with their pre-approved offers. This means that if you are fine with the terms and conditions, the only remaining thing to get the money is final checks and your signature. So, carefully review the loan agreement, especially interest rates, and only select the offer that comes with the best conditions. Then, Lendela will help you book an appointment with the selected option for signing the loan agreement.

Finally, sign the loan agreement and the money is disbursed to your personal account. From there, all that remains is for you to repay the loan. So, it is paramount to have a good plan for repaying it. We recommend that you revisit your monthly budget to factor in the repayment alongside other personal expenses.

What Happens if My Personal Loan Application Gets Rejected?

There is no need to worry if your personal loan application gets rejected due to your credit score. There are several alternatives you can try that could help improve your credit score or correct any false information that appears on your credit report, such as:

  •  Applying for smaller, short-term loans instead of larger amounts of money that take longer to pay back. This will quickly showcase your trustworthiness and repayment abilities to the bank or financial institution.

  • Repaying any outstanding debts in a timely fashion.

  • Considering a debt consolidation loan in Singapore if you have multiple loans.

  • Correcting errors that might be in your credit report before applying for loans from a bank or financial institution. Begin by getting the credit report and reviewing it closely. For example, does the report indicate you have a debt whereas you do not have any? Make the appropriate corrections to ensure you are not portrayed in a harsher light than necessary.

As you can see, bad credit can be a serious challenge, especially when trying to apply for a personal loan from conventional loan providers. However, you can try out the options we have listed above to get a personal loan in Singapore with bad credit.

Discover Personal Loans with Lendela Today

Working with Lendela is particularly awesome because you can simplify the process and get the loan approved fast even when you have some debts and a not-so-good credit score. However, you need to focus on improving your personal credit score to make it easy to access loans in future. Again, make sure to carefully follow the monthly repayment plan until the loan is cleared. Apply for a loan with Lendela and unlock the best loan offers regardless of your credit score.


What is the range of a bad credit score?

A bad credit score in Singapore ranges from 1,000 to 1,723. A good credit score starts from 1,900 to 2,000.

How can I check if I have a bad credit rating?

To check your credit rating, you can read our helpful guide for ways to check your credit score in Singapore. In summary, you can either send a request to the Credit Bureau Singapore (CBS) to obtain the report (which will cost you around $6.4), or get a free credit report if you apply for new credit facilities such as car financing, wedding loans, or personal loans.

What types of loans can I apply for with bad credit?

Despite having a bad credit score, there are still numerous types of loans you can apply for that may be approved. These include personal loans, short-term loans, and debt consolidation loans, however these are all heavily dependent on other requirements, such as age, annual income, debt-to-income ratio in addition to your credit history.

Key Takeaways

  • Having a bad credit score can greatly decrease the chances of your loan application getting approved in Singapore.
  • There are multiple factors to be aware of that could affect your credit score, such as your credit account history, credit activity, account delinquency, and credit utilisation patterns.
  • There are a few ways to successfully apply for a personal loan in Singapore despite having a bad credit score. These include borrowing from a credit union, considering a home equity loan, or using Lendela’s services to discover the best loan options regardless of your creditworthiness.
  • If your loan application gets rejected, there are several alternatives to try that may boost your credit score, such as repaying shorter, smaller loans, repaying outstanding debts, considering a debt consolidation loan, or correcting any errors in your credit report.