Guide for Australians Living in Singapore
Australians, who plan to move to Singapore should not only maintain but also establish credit in both countries because doing so is not only an ideal arrangement, but also a smart financial move. Credit is not a cross-border thing and so that good credit history you have in Australia will not automatically transfer to Singapore or the other way round. However, there are prospects of future expenditure on property, a business loan or financial flexibility, and all these may lie in the hands of your credit profile in both countries.
Saving Your Australian Credit Rating
When you move out of Australia, your credit file does not get wiped off but it remains dormant. In order to maintain it you need to have a financial adviser for Australians Singapore, it is necessary to:
Keep a minimum of one on-going Australia credit product (e.g. low-limit credit card or line of credit).
Make sure that the payments are made on time through direct debit payment with an AUD account, even when being abroad.
Make sure that your address is always up-to-date in your banks and credit agencies so that when they need to send you an important notice you do not miss.
Credit in Singapore
In Singapore, the ranking is more opaque whereby, the system depends a lot on the Credit Bureau Singapore (CBS) to rank you on how you repay their banking products.
· Setting up a local bank account with one of the reputable banks such as DBS, OCBC or UOB.
· Get a secure credit card or a local payroll one.
· Build trustworthiness by taking payments using telecom, utilities and rentals.
· Make sure that all bills are paid on time; missed payment has a negative impact on the CBS score.
Next-level tip: Your employment pass (EP) status and salary can affect early credit decisions more than the past.
Why it Matters: Loans, property and business funding
In Singapore: A good CBS score and minimum 6 12 months repayment history is essential to avail a mortgage in Singapore. When you apply for loans, lenders evaluate your Total Debt Servicing Ratio (TDSR) and to have a clean visible use of credit is important.
Australia: Your credit file can also turn against you in the country, if you want to come back and spend some money there. Having an active Australian credit card or line of credit gives you an edge when applying for home loans or business finance given idea to financial advice for Australians in Singapore.
