Keep or close off unused credit cards to have good credit rating?

How do you get a very good credit score in Singapore? Does it work differently here than it is in other countries?

I've seen people (overseas) recommending to keep credit facilities open as long as possible even if you do not use it as the score depends on your oldest one.

Whereas for Singapore, I've read that you should keep your credit facilities to a minimum and close off those you do not use as it would mean more exposure to stretching credit?

Thanks.

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Pang Zhe Liang

25 Nov 2019

Lead of Research & Solutions at Havend Pte Ltd

Generally, if you are no longer using the credit card, it is advisable to terminate it. However, there are various factors that affect your credit score. Here are some of them:

Spending habit
On-time payment
Account history
Total number of credit cards

In a way or another, these factors may affect your overall credit score. Therefore, plan properly if you want to improve your credit score, or if you are intending to take up a huge loan in the near future.

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Kelly Trinh

25 Nov 2019

Backoffice technical at financial services firm

Your total length of credit history is a factor - but it measures from when you start getting credit not the latest 'alive' facility.

Usage of credit facilities (ie drawdown as % of max) is a factor - so actually keeping unused facilities around is helpful.

When you apply for loan/credit card if the bank does a credit check - you get the chance for a free credit report. Its actually online now so very easy and you can read up the factors as well as how they apply to you.

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