A-Credit is a financial jargon used by lenders to describe borrowers with the best credit profile, than therefore deserves the lowest rates available for a housing loan which are not published to the public.
As there is no industry standard in determining credit scores like FICO in the United States, banks apply their own internal equations to calculate a credit score for a home loan applicant.
The inputs and variables used to run those formulas are retrieved from the Credit Bureau of Singapore.
The credit score equations would usually generate a number, which will then be used to identify whether someone has good or bad credit according to the lender’s own internal credit standards.
For example, a score of 150 resulting from a particular lender’s credit scoring system can mean an average credit rating. While a score of 280 can mean a borrower with A-credit.
Because different banks would inevitably have different standards and criteria in judging credit profiles, an individual with A-Credit with a bank don’t necessarily mean that he or she enjoys the same status at another bank.
This implies that due to an A-credit rating, a home buyer might enjoy a better rate from his preferred bank compared to a bank that is advertising home loan rates that are the best in the market.
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