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Ways To Save Money With A Personal Loan

There is a reason why even the rich people make use of loans. It’s about liquidity, leverage and numerous other financial catchphrases that “experts” use so often. Here is how loans can help you. When a personal loan is used responsibly, it could help you save some money as well as enhance your life.

Even before you take out a loan it is important that you consider the amount you actually require and be sure to take an amount that you can repay with ease every month.

Do Not Be Nervous When Using Personal Loans

Loans are intended as financial tools to help you in time of financial need. However, when they are carelessly used, they might indeed end up hurting you. Even then it might be hard for anyone to experience life without ever making use of these financial tools. And at times failing to make use of them might actually cost you a lot more money and time.

Finances would be a lot easy when it was a case of following complete abstinence. This means having to avoid making debt entirely. Except that this just isn’t realistic since sometime you might more or less need a personal loan to help tide you over.

You might need for a car, house, and even education. Once you learn how to use a personal loan correctly and to your advantage, it can greatly improve your life circumstances.

What A Personal Loan Is

When you have plans to redecorate your home, you could consider taking out a home renovation loan. Given that you would like to pay for university fees, you could obtain an education loan. When you would like a car… well, you now know how it works. Nearly all loans are intended for a specific function. This means you can not take out a car loan and try using it on buying yourself new shoes since the moneylender will transfer the money straight to the car merchant.

On the other hand, for you to be able to take out a personal loan, you do not need to have a particular reason. Besides when you have ready cash that you are able to spend anyhow you want, there are many ways for you to make the best of such an amount.

Below are several ways that you could follow to help you take advantage of a personal loan.

Use It For Funding Your Side-Business / Side-Income

If you are considering starting a blog shop or even buying several camera pieces of equipment to rent out or use, taking out a personal loan might be the best way to start you off. When you are considering obtaining a business loan, you typically will require a 2-3-year-old track record “in the black” (that is without losing any money) for you to be able to get your loan approved. In addition, there are specific requirements (an example your business registration matters) that you might not be prepared with as yet.

Even under such circumstances don’t permit this to stop you. This is because when you make use of an affordable personal loan issued by licensed moneylenders to help you invest in a side-business, the amounts of money that you will earn is a lot more than you pay for your loan.

For instance, the usual S$4,000 personal loan that runs for a one-year period might have monthly instalments as low as below $400 each month. This isn’t exceptionally high returns for you to expect to get from your side-business that can largely repay for its entire loan after one year.

Reduce Interest On The Existing Debt

Another way a personal loan can be beneficial for you is by using it to help you save some money. This you could achieve by using low-interest loans to absorb the high-interest ones. For instance, given that you have a S$10,000 loan, that attracts a 12% interest rate.

With this, you might get a personal loan that attracts a 6% interest, and then take out a loan amount of $10,000 using this deal to repay your existing higher interest loan. Having done this, you will end up gaining savings in long-term, since you will be repaying only half the amount of interest.

Even with your credit card debt, you could actually manage it in the same way through doing a balance transfer. The interests might be a lot lower than using a personal loan. However, when that is not a choice, you could try to turn to personal loans. No matter what the case may be, do not let your debts get out of control.

Advance Your Qualifications/ Skills

When you choose to use the moneylender loan to help you pay for skills courses can be a suitable example. Even then, you might need to consider giving yourself time to pursue your studies using this loan type.

For instance, you might use this type of loan to obtain a month or even two of your unpaid leave. For that period of time you could focus on enhancing your skills and by taking this free time, it will give you the opportunities to put together working plans (an example would be writing proposals and also action plans on the basis of your newly acquired skills as well as refine them), or even try them out.

You need to recognize that there might be a temporary loss for the reason that you will have to pay back the loan. On the other hand, if it leads to you getting a promotion, you will in actual fact be able to make thousands of money for years to come in your new job. For instance, given that you have taken a $5,000 loan to acquire the new skill.

Getting a raise of about $400 on the basis of your new skills and knowledge will translate into an amount of an additional S$, 4,800 a year. And by the time you’ve worked for 3 years, you will have earned an additional S$14,400. This amount is over and above twice the total of your original loan.

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    Licensed Moneylender Interest Rates

    Taking out a loan in Singapore is very easy. This is because you do not have to get a loan only from banking institutions. There are many money lender singapore available within the country that you are now able to approach at any time you are in need of a loan. Nonetheless, it is especially important for you to make sure that your moneylender is accredited by Singapore’s Law Ministry.

    This is for the purpose of helping you avoid getting into more serious problems. In addition, it suggested that you take time to care the different interest rates and terms being offered by the money lenders. This way you will better able to choose the loans type that will meet your financial requirements.

    Do make sure that you at all times take out a loan from a licensed moneylender who lets you pay off your loan with ease. This means your money lender should not pressurize you in any way or even make sudden changes to the loan agreement.

    Before you can accept a loan and sign the loan contract, be certain you understand the terms the agreement requires of you. It is important for you to realize that once you have signed the contract, the contract is binding for you and your lender. And a failure of either of the party to honour their part of the agreement, you can be prosecuted by law.

    Therefore, ensure you make your repayments on time and should there be an issue that would make you not make your payments, always talk to your moneylender to adjust for you your repayment terms.

    Protection From MAS

    The government knows that there are a few licensed moneylenders who are capable of taking advantage of worried borrowers. This they do by charging them really high rates of interest on their loans. In order to ensure that the borrowers are protected the Singaporean government has put in place regulatory measures for the moneylenders to follow. Since the beginning of October 2015, it is illegal for authorized moneylenders to charge interest that is above 4% each month. This regulation applies to personal loans in spite of them being unsecured or secured.

    In situations whereby a borrower fails to make their loan payments on schedule, no licensed moneylender permitted to charge fees that exceed 4% for every month the loan amount is overdue. Simply put, all loans taken out from authorized moneylenders in Singapore are capped at a rate of 4% each month irrespective of the current situation. This ensures that no borrower is overcharged or is protected by law in case there is a breach of this regulatory law by a moneylender.

    How Interest Is Calculated

    The moneylender regulation requires that the rates of interests charged on the money taken out from a legal moneylender need to be calculated using the reducing balance method. In other words, this implies that the calculations of the rates of interest to charge on a moneylender personal loan has to be worked out using the principal outstanding amount after the paid figure of the months preceding has been deducted from the original loan amount issued in form of a loan.

    For example, let’s look at a situation whereby borrower X has taken out a loan amount of $20000 and to date has paid off $15000 during the preceding months. Therefore, the interest rate for the present month needs to be calculated on the outstanding $5000, which will now be treated as the current principal.

    In Singapore, it is against the law for a licensed moneylender to charge any interest on the remaining loan before it reaches its due date. This is one very significant aspect you need to think about as a borrower when you still have some overdue loan amount. For example, if an individual takes out a personal loan of $20000 from an accredited moneylender and yet he fails to repay his first instalment totalling $4000 on schedule, the moneylender is only allowed to charge interest on the $4000 amount and not the outstanding $16000. The reason for this is the due date for the outstanding $16000 amount has not yet reached. Therefore, this amount cannot draw any interest to itself as yet.

    In accordance with the Singaporean Law Ministry, the highest fee that may be charged on a borrower’s late payments is $60. In addition to this, the administrative fees that should be charged on a personal loan approved are not supposed to go over 10 percent of the loan amount.

    On the other hand, there is no rule that calls for licensed moneylenders in Singapore to charge borrowers a 4% interest on the loan money they have borrowed. This is a cap interest rate laid down by the Singaporean government to help protect the wellbeing of Singaporean borrowers.

    It is, as a result, the responsibility of the borrowers to make comparisons between several moneylenders as well as negotiate for a much lower interest rate for their loan.

    The wonderful news is that the competition among Singapore’s licensed moneylenders is high. For this reason, some moneylenders charge interests as low as 2 % for each month. Even then, low-interest rates need not be a reason for borrowers to shop for moneylender personal loans blindly. They also need to look at the other important factors before selecting the most fitting licensed moneylender. Some these other factors you need to carefully consider include things like the loan terms and conditions as well as whether the loan addresses your financial requirements.


    Singaporeans are spoilt for choice when it comes to accessing loans. This is because banks are not the only ones that issue loans. There are many moneylenders available within the country that you are now able to approach at any time you are in need of a loan. In order to ensure that the borrowers are protected, the government has put in place regulatory measures for the moneylenders to follow since the beginning of October 2015. The moneylender regulation requires that the rates of interests charged on the money taken out from a legal moneylender need to be calculated using the reducing balance method.

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      Beware Of These Personal Loan Scams In Singapore

      A good number of Singaporeans often find themselves having to borrow some money in some circumstances in their lives – funding for a car or a home, education loan or maybe money for medical emergencies. It is in such circumstances that a moneylender personal loan comes in handy. However, some people are not able to access loan facilities because of their poor credit score.

      There are times when it happens people unable to get personal loans through the legal money lending institutions. These individuals are often in desperate needs raise money and because of this, they end up borrowing from other sources. However, before you make up your mind to get a personal loan from the alternative sources of funding, there are a few types of loans you need to be cautious of to avoid getting yourself in even bigger debts than before.

      Loan Sharks – Predatory Loaning

      Loan sharks are usually referred to “Ah Long” in Singapore. These money lenders generally use deceptive, unfair, or fraudulent procedures to attract borrowers who desperately need cash. Loan sharks more often than not target individuals who are not qualified to access loans from legal sources available in Singapore, for example, banks, because of their bad credit score.

      In their efforts to find ways for them to get connected with unsuspecting borrowers, they often advertise aggressively using ads displayed on public transport, as well as via online platforms. Loan sharks normally are friendly with you during your first meeting. And as soon as you have accepted a personal loan issued by them, they change their behaviour rather drastically.

      From there on they may possibly start harassing you for repayments. Because loan shark business dealings are not regulated by law, they many times tend to charge exorbitant interests that only contribute to getting you into much bigger debt in the end. It is recommended that you do not engage yourself in any way with loan sharks loan services.

      Guarantees Given On Loans Offered Online

      These loan types are also referred to as bad credit loans or payday loans. These are normally issued to borrowers as a short-term loan and are very easy to borrow. This is the reason why they are very appealing to most Singaporeans. You need to watch out for any guarantees that give you a personal loan long before assessing your credit score, income, and other personal data are most likely a scam. Several of these online institutions are only trying to get access to some of your personal data for devious purposes. To help you identify which money lending companies are legal, you probably need to look into some of the following basic indicators:

      • A brick and mortar store in addition to their online platform
      • They have a physical address for their business
      • There being a customer service line that works

      The most recommended way to make sure that you are working with a legal company is for you to do a thorough research. This will help you find out more about the lender from trustworthy sources.

      High Volume Of Unsolicited Contact

      You will from time to time receive multiple emails and also phone calls from these moneylenders. Legal moneylenders will by no means resort to these attempts for them to look for potential customers as they don’t want to bother you for no reason. Therefore It is best that you ignore these email Spams or better yet report them to Singapore’s relevant authorities.

      Phony “Legitimate” Moneylenders

      The alleged “accredited” moneylenders operate as a legal party by use of the legal registration number given by the Singapore Monetary Authority (MAS). And yet they post advertisements by using the names of legal moneylender companies within. They usually will appear to you through the use of social media posts and also random emails.

      It is advisable for you to validate the moneylender company information before you choose to take a loan from these moneylenders. This will help you determine if they are who they claim they are. You can use Moneylender Registrar’s Hotline or website to verify this. Oftentimes, the real companies are not even aware of the imposters who go around scamming potential borrowers using their business name.

      Lenders Asking For Upfront Payments

      These types of illegitimate lenders often demand that you pay an upfront loan request fee before they can offer you the loan money. They even go ahead to justify the need for the fee by claiming that it’s a compulsory processing charge for all their borrowers. At other times they may even classify the payments as collateral needed because of your bad rating. They will then require you to transfer the money to them using the online platform or they seek that you give them details of your bank account. All this they do promising to issue you with a loan once you comply. Once you make the transfer, the lender will run off with your money.

      To come to you as no surprise they cut off any contact with you and even refuse to answer your calls or emails. Always remember this – legal Singaporean moneylenders will on no account ask that you pay anything fees before giving you the loan.

      Scare Strategy

      Some of these lenders may even start harassing you as soon as you have borrowed from them, while others may start their threats before you can even make paying the loan. Legal and reliable moneylenders will never pressurize you into making a transaction because it is a personal decision that you ultimately have to make.

      Still, after you’ve made the personal loan, these illegal moneylenders will even start threatening you that they’ll take legal action against you for unpaid loans. They might even intimidate you by mentioning the names of your family whom they may possibly bring harm to, should you not make the repayment on time. These illegal moneylenders are generally very bold and always take advantage of causing fear t their borrowers by using these scare tactics. Such fear is what makes their borrowers vulnerable and very easy for them to prey on.

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        Tips To Ensure A Small Business Loan Doesn’t Wreck Your Credit

        Let’s say you have been considering starting your boutique or bakery for quite a while now. You have gone ahead and saved up some money for your down payment. However, you do require a microloan to help fund your business project. You could be planning to stock or even manufacture a seasonal product. It could also be that you have to replace some of your business old equipment. All these business plans do require funding which you may currently not have.

        Under such circumstance, taking out small business loans would be your best choice. You simply request for one from a licensed moneylender and are certain of repaying the instalments promptly. If you plan or have taken out a small business loan, ensure that you follow the below-given tips to help you keep your individual credit rating from crashing.

        Think About The Effect Of Failing To Repay Your Loans

        The guaranteed loans issued for SMEs do affect your personal credit rating. When things work out as planned, you are bound to see a positive effect on it. However, these business loans can disrupt your credit score, especially if you take out any additional debt, default on repayment or even fail to pay your instalments on time. In Singapore the banking institutions are will more probable to report your business loan to agencies compiling the credit histories than the licensed moneylenders. The records are not those restricted to your business financing.

        When you hold business credit cards that have a personal guarantee, the credit card company issuing them will report any default and late payments. The late payment and non-payment get reflected in the annual accounts statements. If you are in the habit of making use of your personal credit card to extend cash advances or purchases for the start-up or new business, then you need to be cautious. This habit can have negative or positive effects on your personal credit rating depending on the manner in which you handle this credit line.

        So How Do You Ensure That It Doesn’t Have An Effect On Your Credit Score

        To ensure your small business loan does not affect your credit rating, you need to carefully look at how you have structured the small business status. You could also do what the other entrepreneurs have been doing and by all means possible avoid mixing business and personal accounts. Keeping your personal and business finances separate is a wise move. This is because your personal credit rating affects your whole life and it is a determining factor in a lot of other things such as owning property. You may consider making use of the following suggestions to help you reduce the negative effect a business loan may have on your personal credit score.

        Make Your Business Its Own Legal Unit

        In making your business an entity on its own, you will have completely separated your business from your personal finances. And this will also mean you won’t be liable for debt incurred by your business. But when you are the sole owner, it will be hard for you to keep your business and personal credit separated. As a sole proprietor, it means you have an unlimited liability, and it’s possible for you to get sued on a personal capacity for all your business debts.

        Being a sole owner your potential creditors will most likely have to check both your personal and business credit history as well before lending you any money. Therefore, Instead of sole ownership, you may consider launching your company as a private limited business.

        Get A Business Credit Card For Your Company

        Take time to research on acquiring a business card that will not consistently give out your information to the credit reporting agencies. You can request for a business card (or even a personal credit card when you don’t qualify for a business card) and make sure you solely use it for all your business expenses.

        When you use your personal card for some of your business expenditures, make sure you pay off the bills as well as cash withdrawals promptly. Failure to do so will only result in you getting a negative credit report. You can, however, protect your personal assets by taking out only small loans and paying them off on time at all times.

        Think About Other Funding Alternatives

        The good thing here is that times have changed and ways of funding a business have become more creative. Without relying on personal credit cards, offering assets as collateral for a business loan, or mortgaging property, you could tap into other funding sources. Do some research to find out whether you can use some of your investments, retirement savings plan, or the term deposits get a business loan. The good thing is that these loans possibly will not reflect on your credit report, therefore, will not ruin your general score.

        The other funding source you want to consider include social lending and angel investors. Social lending you get a loan issued by a big number of people who have pooled their funds together. While angel investors are people who are interested in investing in small businesses as well as upcoming startups.

        Most of these investors are former entrepreneurs thus they can offer very valuable business advice in addition to offering you funding. Even then ensure you have a solid business plan before approaching lenders for a loan.

        Check With Authorized Moneylenders

        When you decide on taking a business loan from a money lending company, make certain you know and understand the terms and conditions of the loan. Also read the loan contract carefully and ask for clarification when conditions are not clear to you. At the same time before you take the small business loan, ask the licensed moneylender what their policies on reporting business loans are. Be sure to work with a lender who does not report loans to credit score companies when they note the first signs of payment difficulties. Always take out loans from trustworthy moneylenders who don’t forward your information until all ways of loan payment recovery have been exhausted.

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          Weekly VS Monthly Loan Contract: Which Is Better?

          If you have a financial plan that is aimed at getting you out of debt a lot faster, trying other ways to repay that debt could be a valuable strategy. The possible benefits of making weekly payment instead of the usual monthly payments depend on your type of debt as well as how the interest is being calculated. For someone who is paid weekly, choosing to make weekly debt payments is easier for you and it helps you maintain your payments up-to-date.

          By making frequent, yet smaller payments on debts will help you repay them more quickly. Weekly payments in place of monthly will also assist you to budget your money, especially if you always get weekly or bi-weekly paychecks. Use a specific amount from each check for the payments so that you won’t have to save up a chunk to pay on month end. Arrange for your weekly payments to be deducted automatically from your account, that way you don’t have to spend much on postage

          By having an official capping on monthly interest charged by accredited moneylenders to 4% since the beginning of October 2015, a lot of these credit companies now have switched their contracts to weekly instead of monthly. This they have done so that they can go around the law and still cover for their losses through interest income. Below are some things you need to know about weekly and monthly loan contracts.

          Weekly VS Monthly How It Works

          Bi-weekly isn’t the similar to twice a month. The year has 52 weeks, meaning that using a biweekly payment plan; you will have to make 26 payments each year. But, the year has only 12 months, and if you are making 2 payments every month, you will only make 24 payments each year.

          With making payments each week, you will actually be paying an extra loan payment every year. Therefore, when your payment is $1,200 each month, you will pay $14,400 per year using the monthly payments plan. When you make your payments each week, you will end up paying $15,600 in a year.

          Types Of Interest On Debt

          Rates charged on your debts are calculated either daily or monthly. Fixed payment loans such as home mortgages or car loans work out their interest monthly. The interest you pay each month is computed on the outstanding balance after the past month’s payment is received by your moneylender.

          Revolving debt like credit cards or some credit lines calculates interest every day. Interest is computed every day on the principal balance of your loan. Payments made early or late in this billing cycle for this type of debts affects your interest charge on your next statement. Payments made earlier reduce the calculating interest.

          Smaller, More Regular Payments

          When you split your monthly payment by 4 and pay them each week to total four payments for the month on your fixed loan payment, the interest charged for the following month won’t different than if you were to make one payment prior to the due date. When you make weekly payments on revolving credit debt, interest charged for the following month will have reduced than when you make one payment right before the debt due date. For debt on your credit cards, smaller interest charges mean that the lowest payment for the following month will be a little lower.

          Tip: Provided that there are no pre-payment penalties, you can make weekly payments instead of monthly for your personal loan, starting with credit card debt to the home mortgage.

          Advantages Of Weekly Payments

          Weekly payments lessen your debt quicker than monthly payments when you make the payment each week in a year; this equals to 52 payments. When you divide the monthly payment by 4, it will take 48 weekly payments for you to cover the annual payments. But when you pay that same loan amount weekly, the additional 4 payments every year go straight to reducing your personal loan balance.

          The result is equivalent to making 13 monthly payments in a year, thus shortening the time needed for you to repay the personal loan.

          Pay Down Credit Cards Debt Faster

          When you plan to pay your credit cards debt on weekly basis, the idea is to quickly pay down the outstanding balance yet keep the weekly payments to be equal. Every month your lowest payment will reduce, but you need to keep making payments at the same rate each weekly. Do not reduce your weekly payments to a new payment amount divided by 4. After several months, you will notice that your credit card balances begin to reduce at a much faster rate than if you were paying close to or at the lowest payment rate.

          Do You Have to Split Your Monthly Payments?

          When you begin paying back the personal loan payments, on long-term loans like mortgages the bulk of your payments for each month will be of interest. The bigger your loan balance is, the more the interest you have to pay. As you pay down your principle, the interest payments will also decrease, and the fraction of your loan payments will change towards paying more of the principle in each month.

          One well-liked way that a few homeowners and other borrowers use to pay down their principle much quicker is by making biweekly payments. This is in place for making single monthly payment; they opt to pay half the payment two times in a month. You may have to find out from your moneylender whether they even allow biweekly payments, and if they charge a penalty when the loan is paid off early.


          By making frequent, yet smaller payments on debts will help you repay them more quickly. The official capping on monthly interest charged by accredited moneylenders to 4% has meant that a lot of credit companies now have to switch their contracts to weekly instead of monthly.

          Weekly payments decrease your debt quicker than monthly payments when you strictly make the payment each week in a year. Before settling for either weekly or monthly payments, look carefully at whether they can help you save some amount in payment.

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            How To Effectively Keep Your Credit Rating Healthy

            Your credit score standing will greatly affect your future as a borrower. It is thus helpful to know factors that make up a good credit rating. When you apply for large loan amounts from financial institutions, they always do retrieve your credit records. This way they get to see your loan history and whether you fully paid your loans.

            Financial institutions interpret credit scores differently. Most banks and lenders base loan approvals, loan amount and at times interest rates on the credit rating score. Note: credits held in other countries, will not be considered.

            The Credit Bureau only keeps records of your credit history. However, it’s up to you to keep it in good shape. It also depends on the lender on how they interpret it for your loan application. Still, there are instances when a person will not have their credit score graded. This can occur when you have no credit history, past or recent bankruptcy record, have all accounts however they are closed, thus the history only shows your Credit Applications.

            What Happens If Your Credit Score is Bad

            Your loan application may be rejected or the moneylender offers you a lower loan amount. Let’s say you need a certain cash amount for studies, your business or health issues. You may not be able to get the loan. Also, there are employers who may use your credit history. Such are in the fields of law, politics, and finance. They, however, may not be able to retrieve your records but they may ask you to get them a copy during interviews.

            What Can Lower Your Credit Score?

            Having Several Credit Accounts

            Even if you have got small credits from different credit cards since you have multiple shows a red flag to potential lenders. Closing all the accounts may not be helpful either. Keep 1-2 accounts and ensure you repay on time.

            No Credit History

            A no-credit record will reflect ungraded credit. Because there is nothing to evaluate, the lender may not know whether you are a low or high-risk type of borrower. This creates a problem since lenders typically refuse to approve large loans amount for to individuals who have an unknown risk. It’s better you open a loan account ensure you repay the loan.

            Several Personal Loans Within Short Periods

            Whereas having no credit record isn’t good, you had many loans accounts is also a bad sign. It will make you seem financially desperate. This generally happens to individuals who didn’t know they had applied for inadequate loans. Make sure you assess all costs before taking a loan. This way you will make an informed decision. It can happen that a person has to take a loan to make a repayment. Use a loan calculator to make accurate estimates of the amount of repayment is feasible for you. This way you will avoid taking a personal loan for you to repay an existing loan.

            Many Loan Applications All At Once

            While some people think it better to apply for several loans at once, it is advisable to just choose the best fit for your needs. Having many loan applications will not reflect nicely on your credit ratings. You will appear too needy when asking for loans. Before applying for a loan, shop around and make comparisons on interest rates of different loans for you to know the one that’s best for you.

            Late Repayments

            Moneylenders have to record your payments, thus late repayments will reflect on your credit history. When you do not repay your loan diligently, then this shows your future lenders as a high-risk borrower. When you know you will be late to meet your loan obligations, don’t hesitate to let your lender know. They are always helpful and will readily adjust the repayment period.


            You may clear the bankruptcy status, yet it will continue to reflect for the next five years. This will prevent you from accessing loans that you want to take out.

            Defaulting credit

            When you time after time fails to pay your debt, it will be taken for a loss. Failing to repay your loans may seem an easy solution for big loans, but it will show in your records. it will very much pull down the credit score and your hopes of ever getting new loans.

            How To Have Healthy Credit Ratings

            Do Not Make Successive Loan Enquiries

            Avoid getting the credit-hungry label. This you can avoid when you do not make multiple loan inquiries. Some people who badly need money approach various moneylenders to get loans. This often looks bad to potential lenders since they will also see the many inquiries in the credit history. If you should take a couple of loans ensure you do so at intervals. Don’t try getting a home loan and a personal loan for when you realize more cash is needed for down payment.

            Diligently Repay Your Loans

            Don’t ignore the payment reminder letters from your moneylender. Moneylenders are ready to assist you to adjust your repayment terms when you tell them about your status. This is better than hiding and later defaulting. When you know you won’t make a payment for the next scheduled repayment, inform your moneylender ahead of time.

            Take Small Loans And Ensure You Repay Them

            When your credit rating is bad you can repair it by taking small loans and then repaying them diligently. It may take you some time, possibly 1-2 years, but in the long run, you will be able to take out higher loans. You can start by taking a loan of S$500 and not worrying about the credit score. However, do expect most money lender to charge a higher interest on the amount.

            Don’t Fail To Repay Your Loans despite the Amount

            When you fail to repay all your loans, you may never get another loan. It may even be impossible for you to obtain a car, home, or student loan. When you let yourself get caught in the debt cycle and you imagine it is impossible to repay all your debts, you may consider having your debt reconstructed. You can contact your credit counsellor to help with this.

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              5 Things To Watch Out When Taking Up A Personal Loan

              When you find that you are short on cash. And you urgently need a certain amount to bridge the financial gap, taking a personal loan can be a great help to you. Singapore has several ways in which a borrower can access money loans. These ways range from the banking institutions, licensed moneylenders and even the use of the credit card to get a short-term line of credit.

              Even as most Singaporean borrowers only focus on the loan costs, there are several important points they also need to take note of. This they need to do before they decide to take any loan type. The list below gives some of the things a borrower needs to watch out for before taking a personal.

              Fees and Charges

              One thing borrowers need to understand is that banks and moneylenders are businesses as well. Thus there is never any logic for them to lend you money that does not attract any charges. Thus, for the 0% interest advertisements mean that you will be paying the fees in a different way. This is more often than not through what is known as an origination or processing fee. It is important for you to note that the origination fee is often times deducted from your approved loan.

              The processing fee often will cost you 2 – 3% of principal loan amount. There are other fees you need to take note of. These fees include charges on change of the loan tenure, late repayment fees, cancellation fees and also early redemption fee. The early redemption fee is only charged when you choose to pay off your entire loan much earlier than scheduled.

              Interest Rates

              When you are searching online for personal loan offers, you may end up getting confused by the many different interest rates that banks apply to price the loans they offer. Most times, you will see at least two different rates of interest. That is a nominal and an effective interest rate. And you will also notice that this former interest is generally lower than the second interest rate.

              It is important to always remember to apply an effective interest rate (EIR) when you are comparing the different loan offers from the Singapore banks. The effective interest rate mostly takes into consideration all the compounding period and also the application fees.

              It will then give you a better measure when you make a comparison between loan rates across the many different providers. Even then, do not forget to factor in the annual flat rate charged on loans. This will be what is needed in order for you figure out the amount of money you have to repay each month to the bank.

              Therefore, it is better that you confirm your monthly budget. This way you will be able to know if these monthly repayments will be made without bringing you any financial strains in each month.

              Your Credit Score

              You can practically get personal loans quite fast in the recent times, with a few banks and licensed moneylenders promising to approve your loan in less than 24 hours. Nevertheless, this is only based on assumption that a borrower has an outstanding credit record. And this gives licensed moneylenders and banks no reason why they will reject your loan application.

              Hence when you want to receive your loans approved easily, and then ensure that you have a minimal bad credit history. This also includes frequent late repayments of your bills and debts. Also, ensure that you have not sent several credit applications within the same period of time.

              Borrow Depending On The Loan Purpose

              If you have ever wondered why so many loan types exist when you are able to just take personal loans to meet your needs. When that was the case it means that a study loan can be replaced with a personal loan for paying your college tuition fees. And better yet have balance transfer loans to repay the credit card debt.

              It is for this reason that particular loans are planned with a purpose in mind. And in most cases, the loans interest rates turn out to be much more competitive when compared to using personal loans.

              Another main difference is in taking a loan for a specific purpose. This way you can get a lump sum to use as per your wish.

              Minimum Loan Tenure

              Most Singapore banks will require you to borrow a minimum period of 12 months on a personal loan. This is regardless of your ability to repay the $10,000 loan within 6 months. This ensures that lenders get an interested fee from a borrower. When you pay off a loan early will cause you a pre-payment charge. It is for this reason that borrowers who are looking to get personal loans need to consider the different options available when they are in need of cash.

              For example, assuming you need a small amount like as $3,000, to pay off one-time hospital bills. It is not the cheapest choice for you to get a personal loan which you will then repay it within 1-year tenure. In fact, using a credit card can prove to be the better option for you instead.

              E.g.: Total cost of a Personal loan of $3,000 for a 12-month period:

              Principal Loan amount: $3,000

              Processing Fees: 2% = $60

              Yearly Flat Rate: 15% a year = $450

              Monthly installment = $288

              Total Loan Cost: $$3,510

              Total Costs of $3,000 when using a credit card for a 3-month period:

              Principal Loan Amount: $3,000

              Annual Flat Rate: 25% a year = $188

              Late repayment charges: $60 a month = $120

              Monthly payments: $850

              Total loan cost: $3,308

              From the above calculations, it is clear to see that costs of making use of a credit card are lower. And this is only when you can repay a larger monthly payment for you to clear your debt much faster. Although a personal loan is used as a financial tool for bridging a financial gap before your next paycheck, do your research to make sure you get the best deal possible by making comparisons and reading our reviews on the list of approved moneylenders.

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                How To Get Low Interest On Your Personal Loan

                Borrowing money is among the many options available to an individual when they need a personal loan. Before you decide to get a personal loan be sure that you have thoroughly done your homework. Also be very clear that a personal loan is the best choice for your financial needs. You then need to review the choices open for you and decide on the one that will best work for you.

                Of importance is that you understand the charges and fees the loan would attract. And also take note of the repayment schedules and conditions. You can also ask for the loan that has an early repayment option.

                Even then, in Singapore, you will find numerous different loan types and also different schemes tagged onto each type of loan. This will on many occasions confuse borrowers when they are looking for the best type of loan that they can take. Even then, it is advisable that you make your inquiries to ensure that you understand what each loan terms are. This way you will be able to make informed choices to ensure you get a loan that fits your financial needs.

                Below are ways in which you can have access to a low interest for your personal loan.

                Advantages of Mortgage Loan Calculator

                Personal Loans Demystified

                A personal loan may well be the best possible loan type for you to get when in need of emergency cash. The fast cash advances and loan services offered by most licensed moneylenders will allow you to have peace of mind. This for a borrower means less stress.

                The loan repayments are often times worked out mostly based on your income as well as other factors. Hence it is still possible for you to get low interest charged on the personal loans you will be taking. Since most personal loans are unsecured. Thus potential borrowers in Singapore do not require to present any type of collateral and mortgages when taking this type of loan.

                Factors Of Low-Interest Loan And Eligibility

                One of the major factors that moneylenders use to determine your loan eligibility largely is on a borrowers’ income level. Also, lenders look at the borrower’s source of income. The more a potential borrower earns, then the higher the amount of loan a borrower will be getting. This major factor also plays a role in determining the increased chance of your loan being approved. This also means you may get low-interest rates on your personal loan. This practice is commonly done by both licensed moneylenders and banks as well.

                Another common practice that licensed moneylenders and most banks do is to allow borrowers to take up to 4x of their monthly salary. In addition, when you are able to prove that you are able to make your loan repayments on time, your personal loan agreement may be worked out to be a better deal for you. This will mean that the terms and conditions of the personal loan will work best for you.

                When the Loan Offer Is Too Good

                The adjustment of the Moneylender’s Act in 2010 has in recent years led to many money lending firms opening up in the neighbourhood and the suburbs. They are also able to offer a range of loan services to the Singaporeans.

                On the other hand, it has been noted that there is also an increase in the number of moneylenders with bad practices. And the coming up of many new and unlicensed moneylenders who at times pretend to licensed moneylenders to lure potential borrowers.

                These wayward lenders often target on borrowers who are in urgent need of cash hence getting themselves into endless bad loan debts.

                Normally, wayward lenders will often offer very low-interest rates to the borrowers but then implement fees and give difficult terms of repayment that the borrower isn’t able to match up.

                Compare Different Loans Before You Borrow

                Make sure to always compare the different loans offered by different money lenders in the market. This the simplest rule of any consumer. There are various personal loan interests offered by different financial institutions, therefore, ensure you make comparisons. And then choose from amongst those the one with lowest interest rates. Find out the loan offerings available for you as a borrower, and consider the debt servicing ratio you have. This is a sum of your debt – the monthly repayments on all your bills- compared to your total earnings.

                This calculation technique will let you check if you could incur more debt. And also whether you can meet the monthly repayment on personal loans you hold. Most importantly, be sure to check that the debt servicing ratio doesn’t go above 50% of a total of your earnings. Otherwise, lenders and banks may not let you borrow the loans or offer you the higher interest rate.

                Deal With The Right Moneylender For Low-Interest Rate For Your Loan

                Once you fully consider your amount of debt and your monthly repayments you are able to manage, plus the outstanding debts you owe for each month, you can then finalize on your decision of dealing with the right certified moneylender.

                • Deal with the moneylender who offers you the lowest interest rates on the personal loan.
                • Ensure you deal with a reliable moneylender and is honest with you. Your loan officer is to advise you on the interest rate, loan amount, and the repayment schedule and amount.
                • Ensure that the moneylender can be trusted and licensed. Most licensed lenders will calculate your repayment package that best suits your current needs.
                • Deal with a moneylender who has good reviews. Also, take your time in comparing the loan interests between different lending companies.
                • One thing to bear in mind is that you ensure to meet your repayments on time.
                • When you consider time flexibility, be sure to choose a moneylender who can offer you this for your personal loan.
                • Look out and be sure to read the loan terms. Ensure that you have Read the moneylender loan contract terms. Also, ensure you understand what you will be signing.

                Read up on our list of approved legal moneylenders so you are better prepared in picking the right service to suit your financial needs.

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                  Need A Small Business Loan? Here Are 10 Things To Consider

                  For a business to move forward, it needs to have a working capital. This is in particular during its initial three years. Each entrepreneur dreams of building a better business, get more clients, make profits and expand. Being able to access a business loan cannot be done out of impulse. It instead needs lots of preparedness and planning.

                  Singapore has, however, a very small number of moneylenders who operate strictly independently. These moneylenders ensure clients information is completely not to be disclosed to anyone and that it does not get distributed. Here listed are 10 things you need to consider if you decide to take a small business loan.

                  Why You Need A Small Business Loan

                  A straightforward answer would be to expand or even maintain your business. But even then, that would be the end result. However, you will need to be a lot more specific with the purpose. There are business owners who take out loans to help maintain the businesses production.

                  An example is a business owner who sells cupcakes. There is a high demand for cupcakes during occasions like Valentines or Christmas day. The owner will require some additional operating capital to help meet the demand. This will also ensure the quality of the product is not sacrificed. This may also mean hiring extra staff to help in the production process.

                  A business loan can also be used for purchasing equipment, paying rent for new premises for expansion and even paying off existing loans. Depending on the intended use of the loan, being specific in your business plan will help keep you focused. You need to consider that a loan is an investment to help grow your business in the future.

                  Whether You Can Afford Getting A Loan

                  It so happens that when taking loans, most people focus more on the interest the money attracts. They seem too shocked on discovering the extra charges financial institutions and banks charge onto the principal amount. When you opt for a loan, do ensure you do a financial analysis. This will help you know whether you can comfortably handle the repayments.

                  Shop around comparing different loans and be sure to ask for quotes. Also, take consider what online moneylenders have to offer. This is because banks can offer you set loan packages which may not be flexible to fit your unique business needs.

                  How Fast The Money Is Needed

                  You will also need to think about how soon you need the money. It could be you have found a business opportunity. You may have been looking for equipment which suddenly goes on sale. Your own saving may not be sufficient, but in making the purchase now could lead to you saving more.

                  Bear in mind that although bank loan processes take weeks, it does not guarantee you will get the loan. Licensed moneylenders provide online business loans and take a shorter time to process. You could even get your loan approved within 24 hours.

                  How Much Working Capital You Need

                  You could seek financial advice from your bookkeeper or accountant. This way you are able to come up with a realistic business plan. This plan will be more accurate and not an estimation or underestimation of the business needs. Also only take the loan amount required.

                  Taking a loan means you have a financial responsibility. Therefore you should meet it to avoid long-term costs of bad credit. A loan calculator will help you know how much you will be paying in full and how many repayments you need to make.

                  The Type Of Lender You Are Looking For

                  Different moneylenders offer varying loan products. Therefore you have a bigger choice than just banks. Consider that banks provide loans with strict eligibility lists and for a specific purpose. On the other hand, licensed moneylenders offer small business loans that could be suitable for your needs.

                  Your Readiness To Tell Your Story To Your Lender

                  Moneylenders always want to know your type of business, credit experience, goals and previous ventures. You may have to share who your clients are, how you take care of credits, the managing style of your business and achievements you made. This will help prove the potentials your business has to make sufficient income to help repay the loan.

                  Whether Your Documents Are Ready

                  Moneylenders are rather strict with a person’s qualification for a loan. You need to be able to prove that your business is thriving to help you get the loan. Provide documents to help prove that you merit getting the loan. This includes the company’s recent account statements, Tax Notice of Assessment and other needed financial statements.

                  Your Credit Score

                  Get a copy of the credit score to help save time before applying for a business loan. Your credit score will help know which lender will best help you. You can also build your credit score before taking a loan. This is because bad credit means your loan will be declined. And also the application could lower the score since each application is accounted for.

                  Other Debts

                  With an existing debt, you will need to show that the cash inflow is sufficient to cater for the added financial responsibility. It’s better to declare all your existing debt to a moneylender before they discover it. Even when you get a loan without declaring all debt, you will financially strain yourself when making the repayments.

                  The Relationship With Your Previous Moneylenders

                  Building faith between you and moneylenders will earn you financial partners. This way you can turn to them should you need a new loan. You can also expect faster loan processing and even a higher loan amount.


                  It may not be an easy task when applying for a small business loan. Even then being ready and your knowing what to anticipate will make the process manageable. This will also help you get the most suitable choice to suit your needs. When seeking a small business loan, licensed moneylenders are worth considering. And they also have knowledgeable loan officers who will help process your loan.

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                    Loan Application Rejected? Here Are Ways To Get Your Act Together

                    There are many reasons why you would want to apply for a loan. Face it: you live in Singapore. You need money to do a host of things. You need to make payments for your pet’s registration, after which you will have to budget its monthly feeding and grooming. You need to schedule trips to Disneyland in the US with your best friend (whom you plan to propose to at the place in question). The latest smart house on the market is a must have. Your tuition fees are coming up, and there are books you need to buy. And there is only so much that your monthly or annual income can take care of. Well, time to get a loan.

                    You go to the bank and fill out an application form. The bank gets back to you, saying that you are not eligible for a loan. What, why? How?

                    Banks and other lending institutions look at your work history, annual/monthly income, credit score, and TDSR –Total Debt Servicing Ratio– before approving your loan application. When your application is rejected, quickly check to see which of these is the culprit. Most likely, it is your credit score.

                    The Credit Bureau Singapore (CBS) is the place to go to get your credit report, which will tell you just how much trouble you are in. CBS doesn’t just provide your report to banks and other lending organizations: it also keeps a blacklist. Defaulting on loans or getting debt management, or undergoing bankruptcy proceedings, will get you on that list. No bank is letting you get near them if you get on the CBS blacklist.

                    What do you do now? There is still hope for you. If you can’t get a loan due to intermittent employment or a bad credit score, you can redeem yourself by doing a couple of things. Read on to learn how you can get your act together to qualify for a loan.

                    1. Get A Job

                    Not just any kind of job: a secure job. Stable employment is what you are after here. Also, you should have held this job down for at least a year before the banks will take a second look at your loan application. In general, banks prefer to offer loans to Singaporeans with high annual incomes. Self-employed applicants go through a rigorous process before their applications are approved. Even at that, you have to be earning a certain amount annually.

                    Without steady employment, even loan sharks will baulk at lending you money.

                    And don’t think that you will hustle a side job and stay there long enough to get the loan and call it quits. That will not work. Things might even make things worse for you and your report.

                    2. Settle All Pending Payments

                    Late repayments on loans or credit card bills affect your credit score. Neglecting to clear all the balances due also affects your credit score. Refusing to pay up to the monthly minimum amount on your loans also affects your credit score. These are the major things that give you a low rating on your credit report. It doesn’t matter what all else you do: ignoring your loan repayments guarantees are poor credit score.

                    Before you apply for that car loan, make sure that you clear all existing loans and bills first. No matter how long it takes, do it. Settling your debts gives you a better credit report and a healthier TDSR standing: banks like it when they see that less than half your salary goes to paying credit card bills.

                    Every debt you owe must be repaid, including that library fine for late returns of those books you borrowed.

                    3. Go And Borrow Some Money – Then Pay It Back With Haste

                    This is a smart way to continue boosting that credit score after you have cleared all your debts. Get a very small loan –make it a personal loan or a payday loan- and promptly pay it back. This will give your credit score a healthier sheen, and impress the banks.

                    Do note that this loan has to be a small one, payable in the next month or at least three months. A payday loan is perfect: repay it on your next payday. Over and done with. If you take a loan big enough to make down payment on a house in Brooks Signature, then you must be sure of what you are doing.

                    4. Use Your Credit Card

                    Though a slower way of improving your credit, it is worth a shot. Use your credit card, or cards, to buy stuff and even pay your utilities. The goal here is to make tiny expenditures, like paying for groceries. Using up a large portion of credit negatively impacts your credit score, so maintain a large proportion while spending just a little.

                    5. No New Credit Card Activity

                    This means that you should neither cancel credit cards nor apply for new ones. While it is advisable to cancel credit cards that you aren’t using, now is not the time. Your credit score is affected by either action, so hold off on them for now.

                    6. Exercise Patience

                    Doing all of the things listed above will help you to clear your negative credit report. However, it is still going to take a while. A long while. Like 5 years long, based on what got you on the blacklist in the first place. The least could be two to three years because CBS needs at least 12 months of good behaviour (on your part) to believe that your score has changed for the better. Anything can happen in those two, three, five years. Singapore could be a dystopian, futuristic society by then. At least you have more time to make yourself more loan-friendly.

                    For these life hacks to work, you need discipline. You can start practising on curbing and budgeting your expenditure. Keep a savings account. Set up an emergency fund. And live far below your means. A good credit score will get you that loan: a vacation in the Maldives will not.

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