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    Tricks To Get A Personal Loan With Bad Credit History

    Just like the questionable multimedia documents you have on your hard drive, a few things cannot be removed regardless of how hard you might attempt to delete it. These files always leave behind a track that is easy to dredge up. The same goes for your credit practices as well; in this particular case, deleting will only come by means of getting rid of the debt fast, so that you can enhance your credit score.

    However, it always does not work that way. In desperate attempts to apply for personal loans – whether to help you cope during a tough period and even for financing medical bills, banks will always have a record of how you have been managing your line of credit.

    Give that you have a poor credit history and at the same time you have to obtain a bank loan, do not give up yet, there’s still hope even when the only loan option you were considering goes poof. The below-listed ways will very well reverse the fate of your personal loans and help you get the emergency funding you urgently need.

    What You Need The Personal Loan For

    Having to deal with your loan application being rejected isn’t the end of your life. It simply is the end of a disappointing attempt to obtain a loan. Even as there are many alternatives to the banking institutions, there are choices available to you for the loan as well. As soon as you have clearly outlined the purpose of the personal loan, your Plan B will also become much clearer.

    For instance, when you require the personal loan for startup use, or maybe for kick-starting the start of a revolutionary personal project, it’s time you discovered the surprises of peer-to-peer lending plans, crowdfunding as well as the microloans issued by SPRING Singapore.

    Consider Other Funding Avenues Available

    When in urgent need of funding, bargaining for personal loans with banking organization can feel rather pointless. Large financial organizations as such always have a set of stringent practices and protocols to maintain, thus a no from them is simply that. Instead of fussing about it at the banking hall or even giving up all the same, possibly the answer is as easy as circling the set procedures.

    Do realize that banks are big financial institutions, and not the one and only. It is worth noting that there are many other avenues for funding that can give you the second chance such as the licensed moneylenders. Let’s look at pawn shops, for example; you could and un-hoard the luxury pre-90’s goods for you to get a loan. When you also require a more time for your repayment and you do not mind losing your ‘assets’, then go ahead and coax them to the willing buyers. However, in some cases, you may not have much control of the trend.

    When you would like an alternative that is on the same level as the banking institutions in terms of speedy approvals and high loan limits, you may think about shopping around for the right licensed moneylenders despite the many preconceived notions some people have. These lenders are more ready to accommodate your loan requirements.

    Furthermore, owing to the new effects that started last year, these legal moneylenders will no longer overprice their rates of interest to their borrowers. It was amended from a high of 20 percent per year to 4 percent each month.

    Request For A Loan But With Help

    Before you jump to the wrong conclusion, the idea here is not asking you to commit an identity theft. On the contrary, what is being suggested is that you enlist the assistance of somebody who trusts and knows you well enough to take out a personal credit on your behalf. If you are someone who used to take out credit in past, it’s likely that you were always asked to list your guarantor.

    In this case, it will be like you are getting the guarantor to do the borrowing. Likewise, you will, in addition, be putting the individual’s credit score in jeopardy, therefore be even more accountable for your personal loans as you would your own it. The loan is your, the more reason you need to be accountable.

    Show The Lenders The Proof Of Money

    It might happen that you are back in the money; however, the bank still puts the rejection stamp on the loan application since that one bad financial choice you made many years ago has left a lasting mark on your credit record (and let this be your learning point!). In spite of everything, no one likes the feeling of continuing risks even with the hope of beneficial returns.

    Before you despair, there are very many local and foreign banking institutions in Singapore available for you to choose from in case when your first choice of lender turns you down for a loan application. It still is possible that you to negotiate with the mortgage officer.

    One important thing for you to keep in mind before you go straight to your lender to give your case, make sure that you have armed yourself with the right documentation for instance bank statements and also the latest credit report for you to submit them to your potential lender to show them that you’ve been careful in servicing your debts.

    Conclusion

    Having a bad credit score can leave a lasting mark on your credit history. The solution to a bad credit rating is only doable by getting rid of the debt fast to help improve your credit score. Even then it is important for you to realize that all your credit practices are always recorded in this statement.

    Thus a low credit score can remain in your credit history for a long time and it will certainly have an impact on your future loan applications. Before you give up you need to realize that there are many other alternative sources of funding besides the banking institutions. Therefore shop around for the right lender who is ready to offer you a loan despite your poor credit rating.

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      10 Borrowing Tips For A Short Term Cash Loan

      Short term cash loan in Singapore, are often taken out by individuals who urgently need fast cash for an emergency purpose. The short-term loans are an unsecured type of loans and in order for you to qualify for one. You are required to have regular wages from some sources like from a business or a job. You are also required to be a Singaporean or a resident of Singapore and can work here as well. In addition, the law instructs that you need to be 21 years and above before you are able to take out a short-term loan

      Unexpected events in life can at times pressure many people into taking up short term types of personal loan. One thing tough banking institutions don’t offer their loans to every person. It may happen that a borrower needs a short term loan straight away but they may not hold a good credit rating.

      However, licensed moneylenders are able to extend short term loan types to help their borrowers manage their financial deficit. During times of extreme anxiety, some borrowers may overlook the important conditions of the short term loan.

      One important thing that borrowers need to keep in mind is that that they should avoid borrowing a loan for servicing games of chance that can include games like betting, gambling, investment trading and also undertakings that aren’t a guaranteed thing. The amount of money you borrow needs to be utilized for the particular need it was borrowed for.

      When you have borrowed too much cash instead of using it on imprudent ventures, make sure that you repay it in huge sums as part of the loan repayment agreement.

      How To Qualify For A Short Term Loan

      Given that short term loans are unsecured, the money lender will require evaluating first your capability to pay back the loan. The assessment done also gives the potential lender a good plan of the sort of repayment scheme that will best suit you to ensure that you aren’t overburdened. Your money lender will examine the below-mentioned things for you to qualify this type of a loan:

      Credit Rating – when your credit rating is poor, your lender is able to still help you access the credit you require on condition that your financial situation at present is able of supporting your loan.

      Employment Proof – You also need to present your employment agreement. This contract should contain things like your monthly salary clearly indicated. Also, this serves as an indicator of your ability to service the loan taken with ease.

      Your Recent 3 Months Payslips – this is only for foreigners. These documents enable the money lender to evaluate your income, debt servicing ration, and other expenses. Using this information, a licensed moneylender will know the amount of money they can extend to you in loan money as well as work out a repayment schedule that can work best for you.

      This loan type is specifically ideal for individuals in business and those that are paid on commission. By using such information your money lender is able to work out the amount of money you earn each month on average. This way they are able to calculate the loan amount you are able to get as well as the repayment scheme that is best for you.

      Bankruptcy – when you have in the past filed for bankruptcy, you will still qualify to get a short term loan with a licensed money lender by presenting your discharge letter. Unlike the traditional banking institutions which require a previously bankrupt individual to wait for as many as 5-7 years before they can be able to access credit, there some licensed money lenders who are able to assist you now.

      10 Useful Tips To Consider Before Taking Out A Short Term Loan

      When you are not sure about how the process works and whether you simply would like to access a loan fast and without hassle, it is advisable to read through these 10 tips listed below to guide you.

      • A licensed moneylender needs to explain the conditions and terms of a short term personal loan to their borrowers using a language that is easy to understand and in a clear manner.
      • Borrowers need to ensure that they get a copy of their Note of Contract during the time the funds are being issued to them.
      • It is important that as a borrower you ensure that the Note of agreement is correctly showing the principal loan amount of your short term credit and rates of interest charged as well as dates of the contract and the loan disbursement as well.
      • Borrowers should make sure that the licensed moneylender had issued the accurate loan amount with no portion of it being withheld for whichever reason at all.
      • It is important that borrowers ensure that they pay their monthly installments promptly to avoid incurring additional late payment charges.
      • Borrowers need to get a dated and also signed receipt each time they pay back the short term loan and also any costs charged by their moneylender
      • The receipt needs to bear the certified moneylender’s name, telephone number, address, the cash amount repaid as well as the date when the payment were made.
      • The borrower needs to ensure that they get their accounts statement for all their loan(s). The statements need to be issued at least once in every 6 months. Borrowers should make a point to request for one when they do not receive any from their money lender.
      • Borrowers also should maintain proper records of all their short term personal loan repayments
      • And above all borrowers should not rely on any verbal commitments made by lenders. They should ensure that they always obtain a written proof from their licensed moneylender.

      Conclusion

      Short term loans are often taken out by individuals who urgently need fast cash for an emergency purpose. Unexpected events in life can at times pressure many people into taking up short term types of personal loan. One important thing that borrowers need to keep in mind is that that they should avoid borrowing a loan for servicing games of chance. And above all be sure to work with a licensed lender.

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        Legal Moneylenders Will Not Resort To These Tricks

        By Kally / March 13, 2018

        Before taking out a personal loan issued by licensed moneylenders, it is important that you always confirm the legality of their business licenses. The Singapore Law Ministry always does monthly updates on their website on all the validity of licenses that have currently been issued to money lenders in Singapore. You should know who you are dealing with before taking up a personal loan.

        There have been many cases of unlicensed moneylenders pretend to be licensed moneylenders. Also, do remember to carry out thorough research and only to borrow from legal moneylenders in Singapore. In so doing you will be saving yourself lots of trouble. There are a number of ways that you can use in finding out the interest rates that moneylenders are offering their borrowers. And above all be careful you don’t fall victim to the unlicensed lenders.

        Here are some ways that you may use to help you differentiate licensed and unlicensed money lenders.

        Pretend To Entirely Work Online

        Licensed moneylenders will not pretend to wholly work online. Since they conform to the set rule they have a physical office that fits the details they have indicated online. Unlicensed lenders, however, will act as if they operate online.

        A genuine moneylender will maintain an office and some staff. After you have information from a lender it is recommended that you follow up with a call and also go to their office. Also as you are signing the loan agreement make sure that it’s done only at the money lender’s office

        Ask For Your Personal Information

        Legal moneylenders in Singapore will not remain with your NRIC and any other private documents like your passport, driving license, work permit, ATM card or even employment pass.

        There have been instances where unlicensed lenders who were offering lower rates of interest and in return their borrowers were expected to borrow them their password and ATM card for an entire week. It is possible that these lenders might use the ATM card for unlawful money lending actions. Assisting illegal lenders is a very serious offence.

        Charge Extremely High And Varying Interest

        Licensed moneylenders abide by the interest rates depending on the market rates. This ensures that the borrowers have some serenity because the rates of interest won’t be different at any time.

        Also, keep in mind that the Singaporean Registrar of money lenders clearly states what the interest rates charged ought to be for all the certified money lenders. Provided that the lender you pick is registered and that they use the set rate, they will not risk losing their license should they go against the rule. When you choose to work with an unlicensed lender be sure that their rates will change at any time.

        Loan sharks, in contrast, will not be firm on a contract because it’s a drawback for them. Also, don’t let the lender keep some of your personal papers like your identity card.

        Signing On Blank Paper

        Licensed Moneylenders in Singapore will not ask you to sign a blank Contract. Borrowers need to refer to the borrowing guide prior to taking up a personal loan from approved moneylenders. Normally lenders don’t request their borrowers to disclose their secret passwords. (ATM password, Singpass password, Bank account number etc)

        Remember that a loan agreement is the only document binding you and the money lender. Don’t under any conditions agree to sign any blank or even an incomplete document. The agreement needs to be done by a lawyer and must include all the things you talked about with your money lender.

        The personal loan period, interest rates, as well as all the other fees, need to be indicated clearly in the agreement. Ensure you understand all the things written in the agreement before you sign it. The agreement has to be signed by both of you. Make sure you retain with a copy of the agreement.

        Operating Undercover

        When you are working with a given money lender, confirm whether they are registered with the Singaporean law ministry’s website. All legal moneylenders in Singapore must be listed on the moneylender Registry.

        In so doing it is easy for the moneylender activities to be monitored by the ministry thus ensuring they follow the set regulations and rules. Any moneylender that goes against these laws definitely loses their license. Meaning that only honest, serious, and law-abiding money lenders will retain their registration standing over the years.

        Unlicensed lenders will use other registered lenders number and name to attract clients. And in reality, they do not have a physical office where they run their operations. Thus be cautious when dealing with a lender who doesn’t have an office even if the business number and name appear to be registered under the Singaporean Law Ministry.

        Solicit For Loans

        Certified moneylenders in Singapore do not send SMS or even call their borrowers repeatedly. They also do not persuade borrowers to take up loans with them. The legal money lenders will never pressure you into taking up a personal loan from them. In addition, these lenders do not move the loan money over to a borrower’s bank account without even seeing the necessary paper for loan processing.

        Engage In Telemarketing Or Send SMS

        When you come across a money lender who constantly sends you spam SMS as well as does telemarketing, then you need to simply drop that deal with them. Such lenders are not registered and in addition, they obviously are not sticking to the set money lending guidelines issued by the money lender Registrar.

        The stated regulations strictly forbid licensed money lenders from promoting any of their financial services via SMS or email. This is because of the actuality that many prospective customers have been deceived through fake SMS from unlicensed moneylenders.

        Conclusion

        It is important that you always confirm the legality of their business licenses before you take out a personal loan offered by money lenders. There have been some cases of unlicensed moneylenders pretending to be licensed moneylenders. Also, remember to carry out a thorough research and only to borrow from legal moneylenders.

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          How To Get Best Car Loans Even With Bad Credit Score

          It can be frustrating when you love a car only to realize that you aren’t able to take it home with you since you are not eligible for financing because of your bad credit. One thing to note is that bad credit does not have a specific range. It’s an issue of opinion that if different from every moneylender. When one moneylender deems your credit to be poor another will place you in the subprime range.

          Having bad credit record doesn’t imply that you will not be able to ever acquire a car. In spite of this, you are able to even get a new car even with your poor credit status, since many reliable licensed money lender in singapore are ready to approve your poor credit car loans.

          Don’t give up hope yet, below are a number of tips that can help you get your car using a car loan even when you have a bad credit score.

          Some Issues That Might Destroy Your Credit Rating

          • Defaulting on your other loans, foreclosure, and bankruptcy.
          • Missed or late payments
          • No or little credit history
          • Lots of existing debt
          • Not having assets to act as collateral (a car or a home etc)

          Confirm Your Credit Rating

          Different moneylenders will have different methods when evaluating a borrower’s credit score, but to help give you a clue, it could range as follows:

          • Excellent credit; 740-850
          • Good credit; 680-740
          • Acceptable credit; 620-680
          • Subprime credit; 550-620
          • Poor credit; 300-550

          For you to be able to get your credit report’s copy, you only need to get in touch with Singaporean Credit Bureau Ltd and the DPC. Both of these credit bureaus are gazette as the only credit bureaus permitted by the Singapore Monetary Authority (MAS) to produce copies of your credit statement. Immediately after you have received a copy of your history, make sure you evaluate it to confirm to ensure that you do not fall into poor scores bracket.

          To help give you a better point of view, you do have a possibility of receiving a personal loan as compared to those individuals having to rely on their credit history. When you are certain and ready to get an auto then you better plan to get a good car loan way before you start shopping for your dream car.

          One thing to keep in mind is that your credit report may include your personal information (apart from your contact information), any default records (that is the unpaid debts), each and every credit checks made, bankruptcy records which will remain in your record for 5 years, your credit accounts, loan inquiries and outstanding balances, credit repayments made within the past 12 months.

          Since you now know the things that affect your credit score, make an effort to find a few mistakes in your credit record and do fix them. The previous moneylenders, when you have a few, are the one who records all your payments. And it can happen that on some occasions they may fail to record your timely payments and get to only report the failure to repay on schedule.

          When you come across some mistakes, be sure to get in touch with the credit bureau that had provided you with the data. The credit bureau will then post your argument on your credit record to indicate clearly that it’s under investigation.

          Thereafter they will regularly keep informing you on the progress of this investigation. As soon as adjustment has been done, the credit bureau can then send you the modified copy of the credit statement to you as well as to the companies that made inquiries regarding your record within the past 3 months.

          It is recommended that you take the time to shop around for car loans, however, be cautious with the period of the car loan inquiries you send out. Having too many inquiries will certainly bring down your credit rating further. For this reason, try to apply for a personal loan after 14 days, as this will be reflected in your history as one solid inquiry.

          Also, ensure that you compare your rate of Annual Percentage (APR) for the car loans rather than looking at the low monthly payment it has. When you only focus on monthly interest and payments, you may not make out the bigger picture that you will be paying a lot more than you should. Don’t get trapped in making the personal loan period much longer only to have lower interest for each month, eventually, you may be paying extra in interest.

          Always bring with you someone when you go to a moneylender’s office. The companion may act cynical or unconvinced and can even pose questions that you will have overlooked. Some moneylenders possibly will want to convince you into taking the highest possible interests that they can offer, but your friend can help negotiate for you when you do not have the nerve.

          As soon as your credit is in good standing, be ensuring you keep track of the credit report. Also, make certain that your payments are recorded well to avoid mistakes. When you can, by making your monthly payments in full. When you would like to settle your cash loan earlier than it’s time period, confirm you will not incur penalties. Some moneylenders do charge prepayment penalties. When you choose to have several loans, it can be helpful that you have it with a single provider. In so doing you will easily be able to track your outstanding dues and payments.

          Because your credit record is bad doesn’t mean you have to forgo owning a car. You simply need to do work more, but in the end, it will pay off. Once you get a cash loan to suit your financial standing and need, confirm the amount you can spend on your car. Select your car prudently. Rather than choosing based on style, pick based on your need. Car loans for individuals with bad credit are available; just take the time to research.

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            Are Business Loan Myth Preventing You To Grow Your Business?

            The main purpose of any business loan is to increase revenue as well as achieving a competitive edge. When you are in need of funding, but you are uncertain about how to go about getting your business loan approved in Singapore, this guide can help you clear all your doubts.

            Often at times, you will need a business loan to help you purchase new equipment or even for clearing any pending purchase payables. It can, however, happen that when the banks reject your loan request, you may worry that your business will shut down.

            It is important for you to realize that business loans are an excellent source of funding that will help you operate and grow your business. This loan type may be used for the purchases of business machinery, financing your company, new premises, or for paying the employees salary and bonuses.

            For this reason when you decide to apply for business loan issued by the licensed moneylenders in Singapore, its imperative that you are clear on how you will use the money soon as the loan is approved

            An additional advantage of a business loan is avoiding the danger of seasonality. Lots of businesses bring in the most profits during the holidays season or in summer. This means that they have to purchase more inventories as well as advertising discounts well in advance. These investments may seem hazardous, but, considering that they have to be made during the low-season when the sales are often down.

            A business loan can also help you increase revenue through accepting expensive yet profitable projects that, the lack of a business loan’s help, might tie up a lot of your working capital, which would make it hard for you to run your business.

            Many business owners unaware to the idea of private lending thus forgo this important option because of the misconceptions that are floating around.

            It can happen that one of the below-listed myths is stopping you from going for a business loan issued by licensed moneylenders. Keep reading to identify those that might be preventing you from growing your business.

            Focusing Mainly On The Interest Rates Offered

            Always try to look at other factors other than the rates of interest offered on the business loan you would like to take out. Although you are not the only one who makes this crucial mistake, you, however, need to remember that you need to look at other aspects aside from the lower interest rate being offered.

            These should include the loan amount, processing fees, tenure, hidden charges, monthly instalments, penalties on missed and delayed payments, prepayment charges, as well as loan extension plans.

            It’s Not Easy to Get Money for New Businesses

            A lot of small businesses happen that they believe this myth. Partners and individuals miss out on crucial opportunities of turning their idea into a reality or even to grow their fledgeling venture. a number of Singapore’s licensed moneylenders do offer loans to help set up businesses and also fund the marketing campaigns you would like to run.

            These ventures may range from start-up loan to short-term SME loans for the salaried individuals, self-employed as well as contracted individuals as well.

            To Approve Business Loan You Require The Perfect Credit Rating

            For some individuals, poor credit ratings might pose an obstacle for raising money from lenders or even through the government offered grants. A good number of Singaporean moneylenders will approve a business loan even when it happens you have a less than ideal credit score, given that you meet the required business loan necessities.

            The provisions of the loan range from yearly revenue along with profits, cash flow, business size, business age and the nature of industry you are in.

            Each Licensed Lenders Are Scammers

            Some misinformed well-meaning friends and family may recommend that you stick to business financing from banking institutions or nothing, even when your company is suffering or even stagnates from the lack of funds. Do not let previous and bad lending experiences cloud your view of private funding.

            Always choose trustworthy certified money lenders over the unlicensed hacks. The earlier is a professional and also follows principled business practices. This also means that you will get credit on schedule and under affordable terms.

            Lenders Favor Larger Company Loan Compared To Small Business Loans

            Although certified moneylenders hardly get profits from large advances or even the loans that are for long periods, most of them are ready to work with all kinds of establishments – both small as well as large. Even then do not let this myth prevent you from seeking SME financing offered by legal money lenders in Singapore.

            In its place, you will need to focus on the cash flow and your capability to pay off for you to be able to make out the amount of money you will need to borrow.

            Unsecured Loans Come With Rigid Payment Schemes

            The traditional bank loans usually have fixed loan tenures plus EMI rates. Thus you will repay money based on a fixed schedule, not considering how the business is performing. When you have a small-scale company or your company produces seasonal goods, and that your company has flows and recede. This, in the end, affects your capacity to pay and it may also put strains on your finances.

            With the private lending option, you will get reasonable repayment plan or even tenure plans depending on the business needs. Of importance make sure that you pick short-term credit for all the transitory cash needs.

            Banks Are The Single Source Of Financial Support

            Traditionally SMEs in Singapore often turn to banking institutions and other similar financial organization for their funding needs. Even though this might be the custom in your chosen industry, however, you can rest assured that there are many other funding options that are worth exploring.

            Licensed private moneylenders in Singapore also offer working capital loans, and on many occasions without the tedious paperwork. With this in mind, you could get your funds approved under a week in many instances.

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              Not Everything You Hear Is True About Money Lending

              Given that you’ve heard the numerous myths about moneylenders, along with the strategies they use to convince you to borrow from them; it’s likely you may never consider getting a loan. Sure, there are disturbing stories and you need to know them. Even then, these are rare; particularly when you do your research.

              Take your time to locate a certified moneylender, and also know the options available for you, and you will avoid the shocking stories out there. Since it is about moneylenders, the conditions you will need to deal with, as well as what you need to actually know because it involves borrowing, provided you choose a certified moneylender once you are prepared to get a loan.

              All Moneylenders Are The Same

              This is not true, and there is more than one lender in Singapore. Actually, there is a reason why there is more than one type of loan. You will easily be able to find that one lender is different to the next.

              Meaning that the conditions will differ greatly too. When you aren’t ready to shop around while you compare the conditions, you will end up paying more in interest and also in other fees than you need to repay. When you take the time, confirm the lenders who are out there, and the type of terms being offered for you to make the best of.

              As a borrower, certainly you will find the conditions that work well for you. Therefore, be sure to do thorough research, compare, learn, and find lenders that is right for you to get a loan from. You also need to know the lenders to avoid when you would like to borrow.

              Personal Loan Is The Way To Go

              A personal loan may be the best alternative for you to settle your debts. This may be the case for some people, but not for all Singaporeans. This loan type is a great tool for repaying loans; but, when you don’t have good credit, you will not succeed in getting this type of loan. Or you could get the loan but the amount won’t be much as you ‘would like, this however meant to make it easy for you to repay.

              Thus occasionally, a moneylender or even loan consolidation may be the way for you to go. You need to do your research, to help you find the options available out there and then pick the best option for your current situation.

              Personal Loans Are Expensive

              Again, this may be the case, but only when you do not take the time to compare lenders. When you take the time to make a comparison of at least 3 to 5 moneylenders, you will obviously find some that will be charging you more interest as compared to what others will charge.

              When you don’t shop around and merely work with the first moneylender you find who is ready to offer you a loan, it’s quite possible that this lender will give you the most expensive payday loan you can take.

              Like with everything you decide to buy or even any sort of credit card you’ve taken in the past, a number of companies will have more reasonable terms as compared to others. Therefore, for this reason, you will need to find out those lending companies that are right for your financial needs, so as to ensure that you can handle their repayment conditions as a borrower.

              Credit Is Not Hard To Get

              When this is your situation you most likely think that you can’t have access to a loan at all. Especially in the current competitive lending Singaporean market, this may not be the case. When your credit rating is not great, you may find a few money lender who may loan you money.

              Additionally, you may also find moneylenders that are ready to work with you in settlement of your loan money as well. You just have to be aware of the numerous loan options available to you as well as ask questions in regards to how these types of loans work.

              Although you don’t have the perfect credit rating, you could find moneylenders who are ready to work with you. These lenders will also offer you reasonable terms for the loan once you are ready to borrow a payday loan with them.

              Buy Costly Items

              Some people think a personal loan is good for buying a huge TV, gaming systems, and even other pricey items. Actually, a lot of people consider this to be a good idea, and it’s really not. You might do this, however, it will not go that well for you and especially when you aren’t an accountable borrower.

              When this is your case, you will simply end up getting caught up in a repayment cycle, and most likely won’t be able to escape from it anytime soon. This means you will get stuck paying the interest, thus never repaying the principal loan amount which you owe.

              For this reason, be sure to compare different loan types, learn about the right options, and find ways to deal with purchasing the things you want more responsibly, instead of just getting a personal loan thinking it to be a good idea.

              All Things Considered

              It is possible that you have heard some or even all of these myths since they are about money lenders in Singapore as well as your capability as a borrower to get a loan. The fact is that there are a number of options available to you, and given that you already know how to compare and shop for the right loans types for you.

              It’s quite easy for you to get reasonable conditions as well as lending limits. Once you are ready to get a loan or as a minimum make a comparison of the lenders and loan terms. These are some of the little things you need to know about, this way you will ensure that you work with the right moneylender, who will offer you the right loan type to for your financial needs.

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                Everything You Need To Know To Compare Personal Loans

                One reason why personal loans are popular is that they make sense for individuals who would like to reduce interest paid on their debt. This loan type can also help simplify the debt repayment process.

                For instance, you could take a single loan to repay several credit cards debts. When you are considering taking out a personal loan, it is essential that you compare the available options cautiously. The following step-by-step guide can help you.

                Things To Consider When Comparing Loans

                Personal loans are issued by banks, peer-to-peer money lending networks, credit unions, as well as moneylenders. While you are comparing loans from different moneylenders, below are several points of evaluation to consider.

                Process of Application

                When timelines and convenience are important for you, the simplicity of the process of application is a factor to think about as you compare loans. Usually, you can apply online for a personal loan. For someone who prefers to apply online, then remove any lenders who want an in-person visit. When fast approval matters to you, don’t obtain loans from lenders whose timelines are longer. Most financial institutions offer rough estimates of the timeline the processing will take.

                Throughout the application process, it is frequent that lenders to offer you a pre-approval rate set in for 90-days depending on the information you provide at first. Borrowers need to ask lenders whether the rate can be changed before your request is finalized. Also, ask if it’s possible for rates to change once the request has been presented. Preferably, find moneylenders who aren’t going to modify your rate immediately after you’ve applied.

                For the application process to go faster and easier, ensure you are prepared to make the application for your personal loan. It could include gathering current pay slips and tax returns, have a list of property and your liabilities and getting W-2 forms plus 1099 forms indicating the salary earned. For self-employed individuals, it will show wages earned in the last two years.

                Unsecured Vs. Secured Personal Loans

                An additional key feature for you to consider when you are comparing personal loans is whether the personal loan you are taking out is unsecured or secured. When your loan is unsecured, no collateral is needed to guarantee your loan.

                This means that there are higher risks for the moneylender should you fail to repay and it’s harder for you to qualify for loans. When it comes to secured loans, presenting collateral means you are taking the risk of losing when you can’t repay.

                But, it’s easy for you to qualify for a loan because your moneylender can always acquire the collateral. Even then you need to choose whether you would like to assume the risk by taking a secured loan.

                Credit Score

                While you are comparing personal loans, it is important that you ensure that you can really get the loan you wish to take out approved. The key factor that will determine if you will be granted a loan is the credit score.

                In Singapore, many lenders accept a credit rating of about 600 for them to approve your personal loan request. Individuals who are eligible for the financing terms often have a credit score of about 700s and above. This needs to be supported by the records showing timely payments in past and current financial obligations.

                Most banks in Singapore won’t disclose exact score procedures, but they offer estimates of the lowest credit scores needed for you to get an approval. As you compare different loans, ask about the lowest credit ratings needed thus you can avoid reapplying to any moneylender who might turn you down depending on your credit records.

                Annual Percentage Rates

                You will also need to consider the borrowing cost. This is among the most important aspect of determining the type of personal loan you’ll choose to take. The rule of thumb at this point is when you are able to access a personal loan that offers lower rates than your debts from the bank, it’s much better than you consolidate the debts into the personal loan.

                So as to compare the borrowing costs among various personal loan providers, ensure that you check the annual percentage rates (APRs). APR is total rates of interest on a loan for a period of one year. These vary depending on your credit score. The lower your APR, the less your costs on the personal loan. As the most important deciding issue make sure to do many personal loans comparisons.

                Repayment Terms

                The biggest reason why people take out personal loans is to simplify debt repayments. When you are able to consolidate 3-4 higher interest loans to a single one, it will make your life much easier.

                Although one payment is convenient, try not to spend too much on repayment of your personal loan. Longer repayment term means that it will cost you more in sum interest whereas shorter repayment periods means the balance will be repaid sooner thus interest costs are lower.

                When a loan term is longer but you would like to reduce the interest costs, you might wish to repay the loan quicker. Confirm whether there are penalties on prepayment from all moneylenders you would wish to work with. When you’re looking at repaying your loan sooner, it’s essential you ensure that you won’t get penalties for that.

                The easiest way to compare loans is by visiting our website. By following these tips you will be able to compare personal loans obtainable from this marketplace and see whether there is a suitable loan for you.

                Origination Fees

                Most personal loan moneylenders charge origination fees when approving loans. Fees might be low to about 1% but might also increase to a high of 6%. When you borrow $5,000 and your origination fee is 1 percent, the fee will be $50.

                For a similar amount, when the origination fee is 6%, you will need to pay $300. Thus high origination fees increase the borrowing cost, so get a moneylender who is offering low or no origination fees.

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                  4 Serious Consequences Of Skipping Your Loan Payments

                  In Singapore, avoiding your loan repayments has severe consequences that may interfere with your future plans. One thing you need to keep in mind is to take out moneylender loans that you are always in a position to pay back on time. It may seem like an easy solution for you to default on your personal loan, but in the end, it will create much bigger issues that will follow you for many years.

                  Most Singaporeans Get Unsecured Loans

                  It’s impractical for a licensed moneylender or bank to require secured loans in small amounts such as S$10,000 or even S$20,000. Although these are huge amounts of money to an individual, they are small when compared to the sums of money handled by many big companies such as banks. For such small loan amounts, the moneylenders, as well as banks, often make use of products such as personal credit lines, personal loans, in addition to the credit cards.

                  These types of loans do not require any sort of security – the moneylender basically trusts that their borrowers will pay off their loans. When a borrower is not able to make repayments, the money lending institutions will, in the long run, be required to write off these debts as a loss. This often means that the individual is in default.

                  Although this may seem like a dream come true for a borrower, that’s not the case. You need to realize that you will incur dire consequences for defaulting on your loan, even when it’s unsecured loan type. These consequences may include:

                  • Denied access to important loan types
                  • Money in your accounts being seized
                  • Difficulties landing a job
                  • Facing Legal proceedings

                  Denied Access To Important Loan Types

                  When you do not pay off your loans, it will reflect in your current credit report. Having a poor credit rating may, in fact, make it hard for you to obtain important loans, like a home loan or even the education loans. This may actually deprive you of essential financial opportunities.

                  For instance, people who are not able to access a home loan will many times be forced to rent. Such is a major waste of money since they are not able to purchase a home for reselling or to rent out.

                  Also, the individuals who are unable to access education loans might end up struggling to land better job opportunities, or even obtain promotions. For that reason, even though getting your debts written off might appear to be a good thing for a short period, the actual costs are hardly worth it.

                  Money In Your Accounts Being Seized

                  Although the money lending institution determines whether the money in your account will be seized, the conditions and terms of the loan also have an influence. However, under certain circumstances, when you hold money with the lending institution, they will be able to repossess it and use for repaying the outstanding debt.

                  Make sure you read through the loan details before you sign it. Obviously, when you have some money in your account, it begs the question why you aren’t making the repayments.

                  Difficulties Landing A Job

                  When you have failed to repay your moans in the past, it more likely will be reflecting on your credit records. When your debt is cancelled and you have made no attempts to settle it or even negotiate, the non-payment will indefinitely stay on your records. When you have made satisfactory efforts to repay your debt, for instance through the help of credit counsellors. After that, the defaults and partial defaults will be removed after three years from your credit record.

                  A would-be employer cannot access your credit records, but they might request that you present them with a copy. Several companies have strict policies against employing individuals who are deep in debt or even those who’ve defaulted in the past.

                  A hiring manager will consider this as an indication of irresponsible behaviour, and might even decide that your fiscal woes may affect your quality of work. In a few industries, for example, finance, the position can be almost impossible to obtain when you have a poor credit report (not many people will trust a financial counsellor who has a long default list!)

                  Facing Legal Proceedings

                  When the bank thinks that you have some money but you simply don’t feel like repaying it (this happens at times), they might open legal proceedings. Depending on the agreement you signed for your loan or the credit card, legally you are obligated to repay your debts.

                  Usually, you will receive the initial legal warning when you fail to make your repayments in excess of 30 days. However, in some situations, the legal action might take place much earlier (for instance when the money lending institution finds out that you are making arrangements to go away from the country.)

                  Secured vs. Unsecured Loans

                  As a borrower, you are able to access both unsecured and secured loans from licensed moneylenders or banks. When a personal loan is taken as a secured loan then you will need to present some form of security (it’s used to back as a promise by the borrower), and as unsecured when it is issued based on reputation and a borrower’s trust.

                  One example of the secured loan is a car loan, and a housing loan. In such situations, the security (your assurance that you’ll repay your loan) is your house or car in question. When you are not able to pay off your home loan, for instance, the lending institution has the right to repossess your home.

                  A further kind of secured loan, that is often limited to well-off borrowers, is the Lombard lending. For these types of loans, the security maybe almost anything that is of high value (an example antiques, a set of vintage cars, or wine.) when the borrowers do not pay back the loan, the lender will acquire their collateral. Therefore, the result of not repaying your secured loan is easy: you’ll lose whatever security you presented for your personal loan.

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                    Should You Consider Going To A Pawnshop For Money?

                    You could be in a tight spot financially. You require a meaningful cash amount for an emergency; however, the banks will not lend you some. In addition, the credit card debts along with the moneylenders are too costly.

                    In such circumstances, you will need to figure out a way to help you access the cash fast and all this without risking facing financial ruin. When you find yourself under emergency circumstances, you might have to consider paying a pawnshop a visit.

                    In Singapore, pawnshops are fairly common, and according to the Singapore Law Ministry, there are 226 accredited pawnbrokers in the country. These types of lenders, in reality, might not be that bad as a choice for you, provided that either doesn’t mind having to lose the valuable item. Or when you are able you could comfortably repay your money within a period of 6 months.

                    Below, are various features you need to be aware of when dealing with pawnbrokers. This will help you evaluate when this lender is the best choice for you.

                    Features Of Pawnshops

                    Quick Access To Fast Cash

                    In Singapore, pawnshops are an interesting option when compared to visiting the banking institution or the licensed moneylenders to get a personal loan. You do not need to have proof of identity as well as income when you need to get the loan issued by a pawnbroker. What you require to have is a valuable piece that you could present as collateral to your lender.

                    Once you’ve offered this, pawnbrokers may then provide you with some money rather easily since they are able to make some cash through selling the valuable even when you run off with the money. In addition to that, whereas banks may take some days in approving the personal loan, most pawnshops can pretty much offer you money upfront once you have brought in your pledge.

                    Exchanging Your Valuable Item For A Loan

                    In most occasions, Pawnshops are rather easy for you to work with. To start with you will need to take one or even more of the valuable items you own to a shop. The pawnbroker there will then appraise the products, and then give you the loan.

                    For instance, when you take a watch worth S$15,000 to the shop, the pawnbroker might end up valuing it at about S$10,000 and thus offer you a loan amount of S$10,000. Normally you could expect to be given 60 to 80% of the entire value of your pledge (which is your watch) for your payday loan from the pawnshop.

                    It is essential for you to keep in mind that you will be borrowing from the pawnshop, and not selling the item to them (although you might sell it to them when you choose to). Normally, you have 6 months to repay the cash back.

                    Every time you offer partial payments, the 6 months repayment period would be reset. It is only when you are not able to pay back the loan money that you will end up losing your valuable item forever. In such a case, the pawnshop broker might auction off the watch in order for them to get better their loan money.

                    Cost Of Pawnshops

                    Getting a loan from the nearest pawnshop in the country is in fact quite cheap. In recent times it looks as if there has been rapid growth in the numbers of pawnshops available in Singapore. This has led to a rather heated competition amongst them.

                    For them to be able to draw in more customers, these types of lenders have been reducing their rates thus giving a higher value to the customers’ possessions. They normally would only charge 1 to 1.5% a month, which is a lot lower when compared to the 2%, charged each month by credit card companies. At present, the biggest players in the country are Value Max, Maxi Cash, Money Max and Cash mart.

                    Other Noteworthy Features

                    In several occasions, when your items are sold during an auction for a lot more than the amount you owed the broker, it can so happen that you could even be given the surplus sum. For instance, given that you still have a loan from the pawnshop of S$11,000 that attracts interest as well as fees.

                    When the watch is finally auctioned off it sells for S$12,000, it is then possible for you to make the additional S$1,000. Although this is much better than you losing the watch completely, it is not advisable that you do this. And besides, you would have earned a lot more money if you had sold your watch on eBay by your self.

                    In so doing you would be avoiding all the fees and interest you would pay to a pawnshop broker. Besides that, you might probably end up selling the item for the much higher price, since most pawnbrokers will only be incentivized to only make a sale as fast as possible.

                    Personal Loans vs. Pawnshop

                    Even though pawnshops aren’t as bad as you may have expected, taking out a personal loan issued by the banking institutions is still a cheaper alternative. It so happens that most banks may charge you around 1% a month on the interest rate on the personal loan as opposed to. 1.5% which is charged by the pawnbrokers in Singapore. in addition, with banks, you do not have to be troubled about losing the valuable item since personal loans often come as unsecured loans. This means that you do not have to present any collateral for you to access some loan money.

                    However, when you do not have a credit rating or even annual income to get approved by your bank (or maybe for a new credit card), the pawnshop could be a better idea, and especially when compared to the more expensive alternatives such as the licensed moneylenders that might charge an interest of up to 4% a month.

                    Ensure that you are comfortable with letting go of your bag or jewellery, or even that you could certainly afford to pay the entire amount within 6 months for you to regain your item back. Otherwise, without any collateral, legal moneylenders are still your best bet when it comes to the quick and easy way to obtain cash to cross over your current financial difficulty.

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                      How To Budget Yourself When You Are Starting Out To Work?

                      By Kally / February 16, 2018

                      Transitioning from the student-life into employment, most of the people become financially independent. You might by now have dependants who are counting on you financially, possibly elderly parents and younger siblings who don’t have their own income.

                      There are student loans to repay quickly too. Although you might have landed your dream job, you could still get yourself in trouble when you aren’t adequately financially capable. It’s important to have money management skills.

                      Manage Your Income

                      Ensure you identify the disposable income (that is the portion of your salary that’s left after you’ve paid CPF and taxes, contribution or rent for the share of the household expenses), and ensure your monthly expenditure doesn’t exceed what’s left of your salary. Keep reading to find out more.

                      Check Your Credit Usage And Spending

                      It’s natural that you’d want to reward yourself for the hard work, however, keep it in perspective. When the newest must-have IT gadget or designer bag costs a huge amount of the monthly income, it could be best for you to rethink the idea of reward, particularly since these objects aren’t investments thus lose their value nearly immediately. A little self-control plus a strong desire to overindulge will only get you into trouble financially. Keep reading…..

                      You’ve got a credit card and have eaten at classy restaurants and clothed in the best labels. You’ve bought a car using a moneylender’s personal loan. All looked rosy, but you start to feel the pressure – the credit card bills are fully paid and promptly. You start to pay only a minimum sum, the outstanding amounts keep growing as interest accumulate and overwhelm you. You’ve taken cash advances plus borrowing from your parents, however, the amounts keep snowballing. At last, your car is repossessed and you seek help to reorganize the debts to evade bankruptcy.

                      Remember to spend what you can afford (but that doesn’t imply its ok to use all that you earn). Consider many aspects before you can borrow. Getting a payday loan, personal loan or credit line need to be the last resort since the costs you’ll incur and complications when you can’t honour your debt commitments.

                      Learn To Work With A Budget

                      A realistic way to manage your disposable wages and keeping track of your expenditure is to come up with a budget. An easy one could be planned in three steps:

                      • Catalog all your living expenses (rent and meals, transport, etc.)
                      • Choose the portion of your salary you wish to use on every item and strictly follow it.
                      • Save the remainder of your pay. Begin first with practical amounts (about $200 a month) and aspire to save about 10% of the pay. And a lot more when you can.

                      Remember to evaluate your budget periodically. You might find that the planned expense limits are unworkable: they might be low or high than they actually are.

                      Change the distinction accordingly – assign more cash to prioritized items, remove unnecessary costs and ensure you save the remainder. Although you can’t save a lot to start with, having savings is an excellent habit to build. Little amounts will grow over time through compounding.

                      Aim at saving 3-6 months’ worth of salary for emergencies and rainy days. Remember to also put aside some cash for infrequent expenses such as for buying birthday presents for close friends or your Mum, for example.

                      Encourage yourself to improve next month through remembering your financial goals. It’s not at all too early to put away some cash for retirement, for parents’ expenses after they retire when they are looking up to you; a dream holiday or a dream flat.

                      Are You New To Paying Taxes?

                      Normally, you’ll get a notification by post or SMS from Singaporean Revenue Authority (IRAS) notifying you when you are needed or not expected to file your Tax Returns.

                      A realistic way for you to manage your own finances is to ensure you understand what can be taxed and what isn’t, also to plan in advance to lessen the tax payable:

                      Normally, all salary earned or derivative from the country can be charged income tax. This will include income you’ve earned from various sources like your employment, carrying out freelance work, offering private tuition services or even babysitting services, or your online business, etc.

                      Starting 2-17 the Year of Assessment (YA), your personal tax returns rates will start from 0% (for a yearly chargeable salary of a total of $20,000) to 22% (for yearly chargeable wages in a surplus of $320,000). Personal tax returns rates in Singapore are progressive, that means the higher income earners will pay proportionately high taxes.

                      There is a personal tax rebate of about 20% of payable tax to people who are residents in the country for YA2017. The amount was capped at $500 for each individual. You could further reduce the tax payable through claiming tax deductions like your course fees relief (this is for any classes leading to academic, vocational or professional qualification, or something that is relevant to the present employment), parent relief (to help support your aging parents who don’t have an annual income above $4,000), as well as deductions on any donations, etc.

                      Planning In Advance

                      Always make an effort to apply and learn basic cash management skills. Make a financial plan indicating your goals and the actions as well as strategies to help you reach them. Discover how disciplined investing and savings will help you reach your set goals thus you be financially ready with savings. Also, have an insurance policy in situations of emergencies. You are responsible for your own financial well-being.

                      Staff Benefits

                      Several workplaces make possible for benefits which permit you to reduce your expenses. Confirm with your employer whether you will get reduced dental and medical fees. You might be covered under a group insurance scheme as well. Be sure you understand these benefits and limitations of these insurance schemes.

                      The benefits may not be moveable when you change employers, thus you need to consider obtaining some health insurance. In addition, consider taking life insurance (when you need financial security for your dependents) whilst you are still young.

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