Do you want a loan but your credit rating is not good?
In Singapore, like elsewhere, banks consider applicant’s credit rating before handing out a loan. Usually, banks reject a loan application if the applicant’s credit rating is not good. So if you approach a local bank for a loan but have a bad credit rating, in all likelihood your loan application will be rejected.
Many people don’t have a good credit history, either because of unfavorable financial circumstances or things beyond their control. A respectable credit score is extremely important, but you still can get a loan if your credit rating is bad.
Legal moneylenders in Singapore offer bad credit loan, that is, they are willing to offer a loan to someone with a bad credit rating. So, if you need money but have a bad credit score, you can approach a money lender.
While money lenders will give you a loan even when you have a bad credit score, you should first exhaust other options before approaching them. This is because they charge a higher interest rate. Try to get a loan from a friend or family member. If you fail to arrange money from other sources, approach a lender.
The main advantage of approaching money lenders is that you can get a loan when other options have failed. The second main advantage is you get the money quickly as they don’t have a lengthy loan approval process. You can expect to get the loan in a few hours after submitting the required documents.
You can take two kinds of loans from money lenders: secured and unsecured loan. In a secured loan, you need to keep something as a security, which the lender can use in case you are unable to pay him back. On the other hand, unsecured loans are just that—unsecured. You don’t have to put any security.
As the risk in the secured loan is less for a lender compared to the unsecured loan, the interest rate of the former is lower.
Whether you take secured or unsecured loan, you should take only that much what you need. Additionally, ensure that you understand all the terms mentioned in the loan contract. Lenders are bound by law to explain every detail in a language you understand. And, yes, don’t forget to take a copy of the loan contract from the lender.
You should take your repayment capacity in consideration when agreeing to a repayment term. In most cases, borrowers choose a longer repayment period, because this allows them more time to pay off the loan. However, the downside is that they will have to pay more in interest.
You can meet different lenders to get the best interest rate. However, remember that you will have to put in a considerable amount of effort in the process, because licensed money lender Singapore usually doesn’t reveal the interest rate over online chat, email, or phone. The advantage of investing time in this process is substantial because even a few percentages less could mean substantial savings for you.