Key Takeaways
- MLCB Function: The Moneylenders Credit Bureau (MLCB) collects credit data from licensed moneylenders to regulate lending and prevent borrowers from taking on excessive debt.
- Report Impact: A good MLCB report secures better loan approval rates and favourable terms (e.g., lower interest rates). In contrast, a poor report can lead to rejections and less favourable terms.
- Borrower Access: Borrowers can purchase their report from the MLCB to verify the data and must dispute any errors immediately with the lender or the MLCB.
- Data Persistence: Negative entries (defaults, late payments) persist for a long time, typically remaining on the report for a few years, making responsible repayment critical.
It can be hard to understand licensed moneylenders in Singapore due to the numerous rules and purported mystery surrounding them. This guide will make it easier by explaining the Moneylenders Credit Bureau (MLCB) and its role in protecting borrowers like you and me.
Also, learn about the Loan Information Report and how it affects loan approvals and rejections, as well as the things you can do within your power to ensure your report is accurate and up-to-date.
Introduction to Moneylenders Credit Bureau (MLCB)
The Moneylenders Credit Bureau (MLCB) plays a part in regulating Singapore’s moneylending industry. It keeps track of credit information for individuals borrowing from licensed moneylenders to encourage responsible borrowing and lending.
Function of the Moneylender Bureau in Singapore
The MLCB collects credit information from all licensed moneylenders in Singapore, including loan applications, approved loans, outstanding balances, repayment history, and defaults. This data helps lenders assess creditworthiness and prevents individuals from accumulating excessive debt, promoting responsible lending practices.
Information Supplied to Lenders
Licensed moneylenders can access a range of critical information from the MLCB to assist in their loan assessment processes. This includes the borrower’s existing loan obligations with licensed lenders, repayment history, inquiry history, self-exclusion records, and any records of default or delinquency.
How Borrowers Can Access Their MLCB Reports
Borrowers can easily obtain their MLCB reports to understand their credit standing and verify the information the bureau holds.
How to Request a Credit Report
To request a credit report from the MLCB, follow these steps:
- Access the Moneylenders Credit Bureau website: Visit the official MLCB website to buy the Loan Information Report. Avoid unofficial third-party services.
- Purchase the report: Click on “Buy my Loan Information Report”.
- Log in when prompted: Log in securely using your Singpass.
- Make the payment: Follow the on-screen instructions and pay $0.50 via Visa, MasterCard, or eNets Direct Debit. This fee is non-refundable.
- Verification and processing: The process is pretty much instant—you can access your MLCB Loan Information Report as soon as your payment has gone through.
- Download your report: You may download and save a copy of your MLCB Loan Information Report for your own records.
Apart from purchasing the report online, you may also obtain a copy of your Loan Information Report by visiting one of the following locations to purchase your MLCB report in person:
- The designated Moneylenders Credit Bureau Office located at 2 Shenton Way, #20-02, SGX Centre 1, Singapore 068804
- The Credit Counselling Singapore Office is located at 51 Cuppage Road, #07-06, Singapore 229469
Do bring your NRIC (or Passport, Work Pass) and some cash to make the $0.50 payment at the counter. Thereafter, your request will be processed, and a physical copy of your Loan Information Report will be printed.
The Impact of a Good vs. a Poor MLCB Report
| Feature | Good MLCB Report | Poor MLCB Report |
|---|---|---|
| Loan Approval | Increased likelihood of approval | High probability of rejection |
| Loan Terms | Better terms (lower interest, longer repayment, higher amounts) | Unfavourable terms (higher interest, shorter repayment, smaller amounts) |
| Processing Speed | Faster processing due to less scrutiny | Slower processing, higher scrutiny |
| Credit Access | Greater financial flexibility and more options for borrowing | More difficulty securing credit legally; might be pushed towards non-regulated options |
| Negotiation Power | Slight advantage in negotiating terms (less common with standard moneylender loans) | Limited to no negotiation power |
| Financial Stress | Reduced stress due to the ability to secure funds for various purposes | Increased stress due to the inability to secure funds during emergencies |
| Credit Rebuilding | Maintains a positive credit history | Requires lengthy and consistent effort to restore a positive credit history |
| Future Planning | Supports long-term goals requiring credit (e.g., business, education) | Hinders long-term goals requiring credit |
Content Breakdown of the MLCB Report
The MLCB Report provides an overview of a person’s active loans, financial health, and credit history with licensed moneylenders, segregated into sections for clear understanding.
Loan History and Status
This section details all current and past loan accounts from licensed moneylenders.
| Loan Particulars |
|
|---|---|
| Repayment Performance |
|
| Security Details (if applicable) |
|
Personal Information Verification
This section ensures the accuracy and authenticity of the individual’s identity, which is crucial for preventing fraud and ensuring proper credit assessment. It includes:
| Identity Details |
|
|---|---|
| Contact Information |
|
| Other Identification |
|
| Exclusion Status |
|
Income Details
This part of the report offers insights into the individual’s financial capacity to repay loans, assessing their stability and earning potential. It typically covers:
| Income Verification |
|
|---|
Clearing Issues With the MLCB
To manage your MLCB report, it’s essential to understand the timeline for information removal and the process for disputing inaccuracies, both of which are crucial for maintaining a healthy credit profile.
How Long to Clear the MLCB Report
An MLCB report provides clear information about a borrower’s credit behaviour over various durations. Fully paid loans and negative entries such as defaults, late payments, or insolvencies typically remain on the report for 3 years.
Although settled accounts will show an updated status, the original negative entries may still be visible. So, always make your best effort to pay your loan instalments punctually!
Steps to Dispute Incorrect Information
If you find errors on your credit report, take action promptly. Follow these steps:
- Identify inaccuracies and gather proof
- Contact the moneylender with this evidence
- Request corrections to be made to your MLCB report
- Keep a record of all communications in black and white
If the lender doesn’t fix it, or if you prefer, you can dispute the matter directly with MLCB. Here’s how: Submit a written dispute with your details, the error, and supporting documents. The MLCB will investigate and provide an outcome within 10 working days after contacting the lender for verification. Once verified, they’ll correct it and notify you.
Conclusion: Secure the Best Loan Terms With a Good MLCB Report
A strong MLCB report is vital for securing favourable loan terms, as lenders use it to assess your reliability based on your borrowing and repayment history. Improve your MLCB report by making timely payments, maintaining a healthy debt-to-income ratio, avoiding excessive debt, reviewing for inaccuracies, limiting loan applications, and consolidating high-interest debts.
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