Best Loans to Help Improve Bad Credit Score in Singapore (2020)

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Taking a loan isn’t necessarily detrimental for your credit score. If you repay your loans on time, this could have a positive impact on your credit score instead. Here are some loans for you to consider.

Struggling with a poor credit score and worried about ever getting financial assistance? The good news is there are many banks in Singapore that recognise that a checkered credit history doesn’t always mean the borrower shouldn’t get a second chance, and banks do contain certain products in their catalogue to help improve credit scores. 

Moreover, people with bad credit history, like everyone else, aren’t exempt from unforeseeable emergencies such as an abrupt medical burden. When looking to loans, be it to manage your debt or for an emergency, take these factors into account: the interest rate, additional processing or one-time fees, the maximum loan amount and tenures and how fast your loan can be approved and disbursed. 

Here is a summary of the best loans that can help give those with bad credit history a leg up. 

Best Loans to Help Improve Bad Credit in Singapore
Best forLoanBenefits 
Lowest interest rate HSBC Debt Consolidation Plan3.8% flat interest rate
ForeignersHSBC Personal LoanLowest income criteria of S$40,000 for foreigners
Instant approval, and application deals and promosStandard Chartered CashOne Personal LoanFirst year annual fee of S$199 waived  in the form of cashback
Short-term loans without interestCitibank Quick Cash Personal Loan0% interest rate and low processing fee for new Citibank customers who apply for a 12-month tenure
Short-term balance transferStandard Chartered Funds Transfer 0% interest with 1.5% processing fee. Also has a flexible 3-month tenure.
Low annual incomeDBS/POSB Personal LoanMinimum S$20,000 annual income

Best for Low-Interest Debt Consolidation: HSBC Debt Consolidation Plan

If mounting debt is a major cause of concern for your credit score, debt consolidation plans should be your first bet. In fact, for that, look no further than HSBC’s Debt Consolidation Plan for its low interest rate.  

HSBC offers the lowest interest rate in the market of 3.8% p.a (7% EIR) with a loan tenure of up to 10 years. It allows you to consolidate all your credit cards and unsecured loan balances while enjoying attractive benefits such as S$0 processing fee and 5% cashback upon approval, subject to terms and conditions. 

The plan is only available to Singaporeans and Singapore Permanent Residents (PR). 

Best for Meeting Income Criteria for Foreigners: HSBC Personal Loan 

If you’re a foreigner working in Singapore without that cushy expat package, HSBC Personal Loan could help make that poor credit history, well, history.

Unlike most banks in Singapore, HSBC offers personal loans to foreigners without the high minimum income salary. If your annual income is above S$40,000, you would be eligible to apply, with the next lowest income criteria being OCBC’s personal loan. Most other banks’ minimum annual income criteria is S$60,000. 

Take advantage of the lowest annual interest rate offer of 3.7% per annum (EIR 7% p.a.); by applying through SingSaver, you also enjoy perks like zero processing fees and cashback promos. The minimum borrowing amount starts from S$1,000 and you can borrow up to a maximum of 4X your monthly salary to clear your debt in a disciplined fashion. 

Best for Instant Approval: Standard Chartered CashOne Personal Loan

If you’re in urgent need of cash to tide over an emergency, Standard Chartered CashOne Personal loan has got your back.

Standard Chartered’s CashOne Personal Loan offers a flat guaranteed interest rate of 3.88% per annum, regardless of loan amount, tenure or credit history. One of its best features is instant approval and loan disbursement, provided you apply online using MyInfo. 

You can loan up to 4X your monthly salary if your annual income exceeds S$30,000. If you’re confident about settling the outstanding balance ahead of your choice of tenure (ranges from 1 to 5 years), you’ll be glad to hear that early repayment comes without extra fees. Speaking of no extra fees, there are no processing fees but Standard Chartered charges an annual fee of S$199 (which is offset by a cashback promo). 


SingSaver Exclusive: Apply for the Standard Chartered CashOne Loan Promotion by 30 June 2020 and stand to win a $10,000 cash cushion!

From 6 April 2020 to 30 June 2020 (inclusive), when you apply for the Standard Chartered CashOne Loan via SingSaver, you automatically qualify for the lucky draw that may see you win up to $10,000! This means your next personal loan could be on us. You will also receive 50off your first month’s instalment amount in the form of a cashback.


Best for Short-Term Loan: Citibank Quick Cash Loan

If you’re looking for a short-term financing solution, Citibank’s Quick Cash Personal Loan is definitely worth a shot.

For new to bank customers, Citibank offers 0% interest rate loan with a low processing fee of 3.5% for 1-year tenures. Longer tenures of 2 years onwards start at 3.99% interest p.a (EIR 7.5% p.a) with no processing fee, provided that you borrow at least S$20,000. Given the low interest carrot, this makes Citibank one of the cheapest loans available for short-term tenures — perfect for unexpected medical expenses, your big day, or a home renovation.

You’ll need to have a Citibank Ready Credit or Citi Credit Card account to be offered a Citi Quick Cash loan.

Best For Short Term Balance Transfer: Standard Chartered Funds Transfer

If you’re rolling over monthly payments across multiple credit cards, Standard Chartered Funds Transfer can help ease that burden. 

For the 6-month option, you enjoy 0% interest rate transfer and a processing fee of 1.5% (EIR from 2.83% p.a). That means if you borrow S$10,000, you pay only S$150. It also means you’ll save up to S$1,050 in interest charges from credit cards over 6 months. Unlike other banks where balance transfer tenures are set at a minimum of six months, Standard Chartered offers a 3-month option with 0% interest and 0.7% processing fee.

The minimum credit card funds transfer amount is S$1,000 and you are allowed to transfer a maximum of 95% of the credit limit to any other bank account, credit card or line of credit.

An attractive promotion awaits you when you apply: new customers get a pair of Apple Airpods with a charging case worth S$239, as well as S$20 cashback.    

Best for Low Annual Income: DBS/POSB Personal Loan

If you find yourself needing an immediate stop gap money measure, but you struggle to meet the bank’s minimum income requirements, consider DBS/POSB’s Personal Loan.

With banks usually setting the bar at S$30,000 and above, DBS/POSB’s requirement is a little more relaxed. Interested loan applicants earning an annual salary of S$20,000 to S$30,000 are eligible to apply, although it comes without the personalised interest rate of 3.88% p.a. 

But that is made up for in the speed of application and approval: existing DBS/POSB customers can simply go online and get the loan application done in a few simple steps via digibank, following which the funds will be immediately disbursed into the designated account upon approval. 

Read these next:
How to Get a Personal Loan in Singapore With a Bad Credit Score
Best Personal Loans In Singapore With The Lowest Interest Rates (2020)
Why It’s So Important To Clear Your Credit Card Debt During COVID-19
Best Debt Consolidation Plans in Singapore 2020
Best Balance Transfer in Singapore 2020