How to Get a Credit Card in Singapore When You Have No Credit Score

What is a credit score?

In Singapore, your credit score is a numerical representation of your creditworthiness. It's calculated by the Credit Bureau Singapore (CBS) based on your credit history, including factors like:

• Payment history: Paying your bills on time is crucial. Late payments can lower your score.

• Credit utilisation: This is the percentage of your available credit that you're using. Keeping your utilisation low (ideally below 30%) shows responsible credit management.

• Credit history length: A longer credit history generally indicates greater creditworthiness.

• Credit mix: Having a mix of different types of credit (e.g., credit cards, loans) can positively impact your score.

• New credit applications: Too many credit applications in a short period can lower your score.

You can obtain your credit report from the CBS website for a small fee. This report includes your credit score and detailed information about your credit history.

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What to look for in a credit card for low credit

Choosing the right credit card for low credit involves considering several key factors:

Eligibility criteria

When considering a good credit card for bad credit, it's important to understand the eligibility criteria. Most credit cards in Singapore have minimum income requirements, which can vary depending on the card and issuer. While some cards are specifically designed for bad credit, others may have minimum credit score requirements.

Lenders may also consider your credit history, including any past delinquencies or bankruptcies. Some cards may advertise that they don't perform a credit check. This can be appealing if you're worried about your credit score, but be sure to understand the other eligibility requirements and fees associated with these cards.

Secured or unsecured

Credit cards can be categorised as secured or unsecured. Secured cards require a security deposit that typically becomes your credit limit. They’re often easier to obtain with bad credit and can help you rebuild your score.

Unsecured cards, on the other hand, don't require a security deposit but may have higher fees or stricter eligibility criteria for those with bad credit. Choosing between a secured and unsecured card depends on your individual circumstances and credit-building goals.

>> More: Building Credit Responsibly With Secured Credit Cards In Singapore

Credit bureau reporting

Credit bureau reporting is an essential aspect to consider when choosing a credit card, especially if you're aiming to build or rebuild your credit. Ensure the card reports your account activity to credit bureaus in Singapore, as this is crucial for establishing a positive credit history. Responsible credit card use, such as making on-time payments and keeping your credit utilisation low, will be reflected in your credit report and can help improve your credit score over time.

Fees

Fees can impact the overall cost of using a credit card. Look for cards with low or no annual fees to minimise costs, especially if you're starting with a limited credit history. Be aware of potential fees like late payment fees, cash advance fees, or foreign transaction fees, as these can add up quickly. Choosing a card with minimal fees can help you manage your finances more effectively while rebuilding your credit.

Upgrades

Consider if the card issuer offers upgrade options to better cards once your credit score improves. This allows you to transition to a card with more benefits and rewards while maintaining your credit history. Upgrading your card can provide access to higher credit limits, lower interest rates, and more attractive perks, ultimately enhancing your financial flexibility and creditworthiness.

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Security deposits: What you need to know

Secured credit cards require a security deposit to open the account. This deposit acts as collateral for the issuer and minimises their risk in lending to you. The deposit amount can vary depending on the card and issuer, so it's important to compare options and choose a deposit amount that you're comfortable with.

The good news is that this deposit is typically refundable. You can usually get your deposit back when you close the account in good standing or if you upgrade to an unsecured credit card after demonstrating responsible credit usage. Some secured cards even offer a small amount of interest on your deposit, providing a slight return on your investment.

>> More: Best Cash Management Accounts In Singapore To Soup Up Your Savings (2025)

Using a credit card to improve your credit

Using a credit card responsibly is one of the best ways to improve your credit score. This involves several key practices:

Paying your credit card bill on time

Paying your credit card bill on time is crucial for building and maintaining a good credit score. Aim to make at least the minimum payment by the due date each month to avoid late fees and negative marks on your credit report. Late payments can affect your creditworthiness, making it harder to get approved for loans, credit cards, and even housing or employment in the future.

Ideally, you should strive to pay your balance in full each month to avoid accruing interest charges and keep your credit utilisation low. Setting up automatic payments or reminders can help you stay on track and avoid missed payments.

Don’t max out your credit card

Maxing out your credit card means using your entire credit limit, which can negatively impact your credit score. Credit utilisation, the ratio of your credit card balance to your credit limit, is a significant factor in credit scoring models. A high credit utilisation ratio, especially nearing your credit limit, can signal to lenders that you're relying heavily on credit and may be overextended financially. This can lower your credit score and make it harder to get approved for new credit.

Aim to keep your credit utilisation below 30% to demonstrate responsible credit management. For example, if your credit limit is S$5,000, try to keep your balance below S$1,500. Keeping your credit utilisation low shows lenders that you're managing your credit responsibly and have a good handle on your finances.

Keeping old credit card accounts open

The length of your credit history is an important factor in your credit score. The longer you've had active credit accounts, the better it is for your creditworthiness. Therefore, it's advisable to keep your oldest credit card accounts open and active, even if you don't use them frequently.

Closing old accounts can shorten your credit history and potentially lower your score, especially if those accounts have a positive payment history. Even if you don't use the card regularly, make a small purchase once or twice a year to keep the account active and avoid having it closed for inactivity by the issuer.

Keeping new credit applications to a minimum

Each time you apply for a new credit card or loan, the lender typically performs a "hard inquiry" on your credit report. These hard inquiries can temporarily lower your credit score, especially if you have multiple inquiries within a short period. Lenders may view multiple inquiries as a sign of financial instability or desperation for credit, which can negatively impact your creditworthiness.

Therefore, it's advisable to keep new credit applications to a minimum, especially when you're focused on rebuilding your credit. Only apply for credit cards or loans that you genuinely need and are likely to be approved for. Spacing out your credit applications over time can minimise the impact on your credit score and demonstrate responsible credit behavior.

Tracking your progress

Stay on top of your credit health by monitoring your credit score regularly and checking your credit report for any errors or discrepancies. You can access your credit report for free from the CBS once a year.

Regularly reviewing your report allows you to track your credit score, identify any inaccuracies, and dispute errors with the CBS to have them corrected. This is crucial because errors in your credit report can negatively affect your score and your ability to access credit.

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Next steps: After your credit has improved

Once your credit score has improved, you have several options to consider:

• Upgrade your card: If your current issuer offers upgrades, consider switching to a card with better benefits and rewards. This allows you to enjoy perks like higher cashback, air miles, or lounge access while maintaining your credit history.

• Apply for a new card: With a better credit score, you may now qualify for rewards credit cards that offer attractive benefits and perks, such as cashback, air miles, or reward points. Explore options from different banks to find a card that aligns with your spending habits and financial goals.

• Keep your old card open: Even if you get a new card, consider keeping your old account open (if it has no annual fee). This helps maintain your credit history length, which is a factor in your credit score.