How length of credit history impacts your credit score in Singapore

The length of your credit history influences how lenders in Singapore assess your creditworthiness. A longer and well-maintained credit history signals financial responsibility, which can improve your chances of loan or credit card approval.

However, unlike in some countries where interest rates fluctuate based on credit scores, banks in Singapore generally offer fixed rates. Instead, a weaker credit history may result in lower loan amounts or outright rejection, making it essential to build and maintain a strong credit record over time.

In Singapore, your credit history length refers to how long your existing credit accounts have been active. A longer credit history demonstrates stability and responsible borrowing, which can improve your creditworthiness in the eyes of lenders, should you take out a loan.

Your credit age, on the other hand, is the average duration of all your open credit accounts. The older your accounts, the better it reflects on your credit profile. However, if you're new to credit, your credit age will naturally be lower, making it harder to achieve a strong Bureau Score.

The Bureau Score, used by Credit Bureau Singapore (CBS), ranges from 1,000 to 2,000, with corresponding risk grades from AA to HH. While CBS provides this score as part of your credit report, financial institutions use their own internal scoring models alongside other factors—such as income and demographic details — to assess your creditworthiness.

While the length of your credit history plays a role in your credit score, it’s not the most critical factor. The best way to improve your creditworthiness over time is to maintain your accounts in good standing, avoid unnecessary closures of credit cards, and build a consistent track record of responsible borrowing.

The passage of time helps naturally strengthen your credit profile, but there are other factors that have a bigger impact on your score. Here are the key elements that influence your credit score in Singapore:

• Payment history – Your ability to make timely payments is the most significant factor affecting your credit score. Late or missed payments can negatively impact your standing with lenders.

• Credit utilisation – Keeping your credit utilisation ratio low (ideally below 30% of your available credit limit) signals responsible credit usage and reduces risk in the eyes of financial institutions.

• Credit mix – Having a diverse mix of credit accounts, such as credit cards, personal loans, or other financing products, can help demonstrate your ability to manage different types of debt effectively.

• Recent credit activity – Applying for multiple credit products within a short time frame can be perceived as financial distress and may lower your credit score. Spacing out applications and only applying for credit when necessary can help maintain a strong credit profile.

If you consistently use credit responsibly — keeping your balances low and making timely payments — you’re already taking the key steps to maintain a healthy credit profile. Over time, your credit history will naturally lengthen, strengthening your overall creditworthiness without requiring additional effort.