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Living Paycheck To Paycheck? Why You Need To Stop This Habit Before It Is Too Late

Living paycheck to paycheck is a thing that most Singaporeans do. While it is assumed that those who live paycheck to paycheck are Singaporeans with low incomes (and so they can’t afford to save), this isn’t true. Some Singaporeans who live for their next paycheck are people who spend their monthly incomes because they have money elsewhere. To this group, since it is just the monthly salary they are spending, they are still safe financially.

This kind of thinking is the direct cause of the debts that several Singaporeans, young and employed, suffer with on a monthly basis. Saving money is difficult because of these debts. It doesn’t matter that you have an alternate revenue stream: saving money is crucial. Living from paycheck to paycheck and accruing debts on the way, even if it is just your monthly salary, is damaging to your finances.

If you still aren’t convinced, then consider these few points. They might be what will trigger you into saving more and spending wisely.

Anxiety Over Retaining Your Job

Living paycheck to paycheck has a requirement: that you earn a paycheck. This is something you may not think about often, till you realize that your expenditures pass your earnings. When your debts start to pile up, that is when your job seems more important than ever. This increases the pressure on you to maintain your job. The increased pressure is totally uncalled-for, and can only stress you out a lot and affect your performance on the job.

Becoming obsessed with holding down your job is not something that will help you at this point. Stressing yourself that much can only be bad for you, you could lose that job. Losing your job could be as a result of many things, such as not being a risk-taker, refusing to learn new things to maintain the status quo or a change in behaviour.

When your thought processes change from rising in your place of work to keeping things just the way they are, you are effectively hurting your job. Losing your job because you refuse to grow happens more often in the business world today. This is because having a passable skill set is simply not enough to retain any form of employment. Employers are more interested in people who can bring new ideas to the table, who can make contributions that lead to strategic growth and development. To bring forth these ideas, you usually need to think outside the box. Go outside your position in that company and envision what you can do to make the entire business better.

Because you live paycheck to paycheck, you become very anxious about your career security. This unhealthy focus can affect your work and your mindset, keeping you in that position for a long time – or getting you sacked from it.

No Emergency Funds

There is a shocking number of working Singaporeans who
a) don’t own emergency funds
b) have no idea about the importance of emergency funds.

Do you also fall into this category? Then this is for you. Going from one month to the next, continuously living from paycheck to paycheck, already indicates a lack of savings. At least you should have some funds set aside for emergencies, but those are absent as well.

Emergency funds exist to take care of all sudden monetary needs that are bound to crop up. An emergency fund is different from your savings since it has a different use: savings and emergency fund should be kept separately. No one wants to have to use up their savings for a sudden, impromptu event. You shouldn’t have to: that is what emergency funds are for.

An emergency fund is set up to pay for any sudden financial issues that may arise. This includes paying rent, a hospital bill, or paying the salaries of your staff when revenue hasn’t been steady.

There is no need to stress the importance of having an emergency fund. What you should worry about is living paycheck to paycheck, with no plans for the possibility of losing your savings in one swoop. Without an emergency fund, you will be in a lot of debt without much hope for bailing yourself out.

Lack of Discipline in Budgets for Saving and Spending

Any financial adviser worth their salt would tell you that, accounting for how much you plan to spend is just as important as making a budget for your savings. You need discipline to spend, just as you need the discipline to save. It is important to establish that discipline and pattern of budgeting your savings and expenditure early in life. It will be of great benefit to you when you go into retirement.

CPF (Central Provident Fund) is paid out only when you retire. Why isn’t it paid out every month? Observing the expenditures of the average Singaporean answers that question. If you were to receive your CPF on a monthly basis, there is every possibility that you will spend it all before retirement kicks in. What will you do then? It is alright if you are concerned that you aren’t in control of your expenditure; you are on the right track. It is better to realize that you need discipline, and then take steps to work on it than to simply ignore it.

If you really want to be financially secure during retirement, there is insurance that you can get for that purpose. These insurance plans arrange payouts for you per month when you retire, a structure that supports your pension. Some plans are structured in the way that you have a constant payout stream for the rest of your life. These payouts will remain so for a partner or entitled family member in the event of your death. You can get insurance coverage with these types of insurance plans, and make sure that your expenditure is restrained in your retirement years.

Living from paycheck to paycheck can rob you of a stress-free life. It is important that you start to take steps today to maintain a healthy spending habit, have some savings for retirement, and set up an emergency fund.

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    How Long Does It Take Before Your Credit Score Looks Good Again?

    Singapore has a high standard of living. It is not unusual for you to go to some financial institution to get a loan. You may need a loan for several reasons, such as taking a vacation, buying a house or car, or paying for tuition.

    For you to get that loan, from banks or moneylending companies, your credit score has to be sound. Some people don’t pay attention to their credit score till they apply for a loan. Knowing your credit score is important, just as maintaining a good credit score is important.

    Then you get your credit report and your score looks horrible. This is because all your repayments are late, and you never pay off your due balances in full. You need to get a loan, but your credit score says ‘that’s impossible’. You are at your wits’ end, fretting over how you can make your credit score look decent once more. If this is you, read on.

    Credit Score – What Is It?

    A credit score is a group of numbers, or just a number, that financial institutions such as banks use to prove that you can repay a loan, or you are most likely to default on loan repayments. For instance, the Credit Bureau Singapore (CBS) uses four-digit numbers to grade, or score, your loan history. This score, called the CBS Credit Score, goes from 1000 to 2000. If your credit report has a score of 1000, it shows that there is a high probability that you will be late on your loan repayments, or even avoid paying them. If your score 2000, it is certain that you will repay your loan, and on time too.

    You should note that CBS does not make the decision for banks to give you a loan or note. They just provide your credit information upon request. Note too that other factors affect your eligibility for a loan, such as your income, number of credit facilities you have used, length of unemployment or employment, and so on.

    Credit Score – How does it Affect Me?

    Your credit score has an enormous effect on your ability to obtain a loan. If you are aiming to get a new car or buy a piece of property, you will have to apply for a loan. This would be a car loan or a mortgage. Once the banks see your poor credit report, none of them will approve your loan request. There go the house and that sweet car.

    A poor credit report doesn’t affect just car loans and mortgage. Any type of loan, such as a payday loan, and educational loan, or a loan for a new credit card, will be denied you with that bad credit score.

    How Do You Fix A Bad Credit Score?

    If your credit score is bad (which is why you are reading this), do not lose hope. You can redeem your bad credit score, although this may take you some months to accomplish. For instance, Credit Bureau Singapore will consider your credit score clean and healthy once they can provide evidence that you have repaid loans and balances on time for 12 months.

    Therefore, you can wipe out your terrible credit past by changing your repayment attitude. In the past, you were repaying very late, not completing balances due, and constantly paying below the minimum amount. Now, you are making all monthly repayments on your loans and credit cards on time, always paying above the minimum amount. Do this for 12 months, and you will effectively clear your poor credit history.

    There are other things that you can do to keep your credit score in good light, such as:

    Reducing the number of credit cards you apply for. Credit cards can lull you into spending too much: try to use cash more often.

    Stop all activity on credit cards you aren’t using.

    Always make your payments on time. Relating to credit cards, your credit card bills need to be paid on time and in full. Even if you can’t make the minimum payments, the time you pay back every month should stay the same.

    Applying for numerous loans in very brief intervals is a no-no. Avoid this at all costs.

    Credit Score – The Unfixable

    Unfortunately, there are issues on your credit report that can’t be fixed. These problems go past the stage of late loan repayment and advance into the areas of bankruptcy and payment defaults. Irrespective of how healthy your credit report looks, once you have entered those stages, they will always appear on your report. Regardless of how much time has passed since then.

    While your redeemed repayments and what-not are reflected in a section called ‘Account Status History’, the issues of bankruptcy and defaulted payments are shown in a section titled ‘Summary’, which is at the top of the report. Specifics of the current state of those problems, such if they are in progress or discharged or outstanding, can be seen as you go on reading the report.

    What Else Do Banks Don’t Want To See?

    When you pay off your loans or bills, there are certain codes that you get. You can visit the website of the Credit Bureau to get more, in-depth knowledge of what the codes mean. The codes are denoted by letters, each with a different meaning.

    However, some of those codes can damage your credit score. These include:

    • H –This shows that your account had to be closed (involuntary closure), and it was done so while there was an outstanding balance
    • R/S – either one of these codes means that your bank has closed your credit facility or your account. Also, it shows that there has been a restructured outstanding on that account
    • W – This code stays on your credit report for life. It shows that you have defaulted on your payments, and it is the most damaging code for your loan application.

    While it may take you at least 12 months to clean your credit history, there are problems like defaults that can still affect your credit score. Nevertheless, there are some moneylending companies that can give you a loan, once there is proof that you are good for it.






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      Personal Loan Myths: Why You Shouldn’t Believe Them

      When you are need of easy and fast cash, yet you have a certain misconception about the personal loans available in Singapore being offered by a licensed moneylender, then this guide will help clear things up for you.

      Licensed moneylenders in Singapore offer personal loans and are often the last resort that customers in need of fast cash turn to. Many borrowers do not make use of this credit option available to them and thus prefer to cash advance withdrawals available using the credit cards.

      By having access to this type of an instant cash loan, you are able to fund any emergency need in the ranging from S$500 to S$100k. The repayment schedule agreed upon on the loan contract is often very flexible and you will be expected to pay a low personal loan interest percentage rate each month.

      In case you are still reluctant to take such a personal loan credit, read on to identify whether your reluctance and unwillingness may be attributed to one of the below listed common myths regarding personal loans applications in Singapore.

      Myth 1- The Application Process Is Complex

      This myth is far removed from the truth. The loan application process in Singapore is easy and can be done online from a licensed moneylender. What you will be required to present to the licensed moneylender is the correct and necessary documents and later all the proofs in person at their bank offices. This will enable the loan approval and processing of your loan application be done in a fast manner. Once your loan has been approved, you will then be able to access your loan amount in a little less than an hour from your bank account.

      The online loan application process is simple and easy to understand and takes a short time to fill out the online application form. Thereafter you will attach the documents required then you will be required to present the original documents in the legally approved moneylender’s offices for verification.

      Myth 2 – Singaporean Personal Loans Are For Salaried People Only

      If you are self-employed, a professional or a contract worker, the personal loan is equally intended for you. You can access this loan type being offered by licensed Singaporean moneylenders.

      What you will be required to present to the licensed moneylender of your choice, is the relevant business details and employment details, a recent bank statement, valid Singaporean pass details and proof of residency and any other vital documentation the moneylender may require.

      Personal loans are accessible to all people provided they present the money lender with business details, a Singaporean identity card, proof of address and any other documentation the licensed money lender may require from you.

      Myth 3 – Purchases Made Using A Credit Card Are Cheap In Singapore

      Your credit card will provide you with a higher credit limit, but the charges on interest are a lot higher on the repayment amounts. When you borrow from a licensed moneylender in Singapore, you will get to enjoy lower interest rates.

      The new licensed moneylender rules stipulate that you will only be charged rates not exceeding a 4% monthly interest rate. Make sure you take time to compare the rates of repayments being offered on your credit cards with those of a Singaporean legally approved money lender. This will help you settle for a loan plan that best suits and addresses your needs as well as one that will not cause you any financial strain during the time of repayment.

      Myth 4 – Personal Loans Require You To Have A Form Of Security

      Whereas banks will insist on you having a form of security to act as collateral for a loan of larger amounts taken, a private licensed money lender in Singapore will extend a loan to you without asking for security.

      This makes the approval of the personal loan much faster as long as you can prove you hold a sustainable source of income to help come up with the monthly repayment amount. Your being able to prove that you are able to make monthly repayments to help reimburse the loan amount taken will determine its approval.

      Myth 5 – Existing Loans Debt Affect Your Eligibility For A Personal Loan

      In case you are afraid of your loan application being rejected because of an existing home loan debt, licensed and approved money lenders in Singapore will not throw away your loan application because of an existing loan debt.

      Singaporean legally approved money lenders will then go ahead and offer you a smaller loan amount even when you owe a large loan debt. Your credit score and history does not affect your loan application approval in any way. Licensed moneylenders are there to help you have access to quick cash to help meet your emergency and financial commitments.

      Myth 6 – A Borrower Needs Good Credit Scores To Qualify

      In Singapore, credit scores and records are especially important for banks. On the other hand, a lower credit score will not stop you from accessing a personal loan from Singaporean licensed moneylenders. The legally approved Singaporean moneylenders are less likely to reject your loan application because of a low credit score unless you hold a history of defaulting on your payments.

      Myth #7 – Focus On Interest Rates Offered

      It is important for you to check the interest rates being offered on the loan you have applied for; it, however, should not be the determining factor. The personal loan comes with many other charges which include administration fees, interests on missed repayments and charges on late of payment of monthly fees.

      Ensure you read through the charges on the personal loans you intend to take and ask the loan officer of the institution for clarification should you have any questions. This is to ensure you fully understand the terms and conditions of the loan you are about to take. Ensure you confirm whether there are early repayment charges as some licensed moneylender even charge penalties for any early settlement since they lose interest in the income.

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        4 Mistakes That Lower Your Credit Scores

        A credit score is a number reflecting your likelihood of paying a credit back. In Singapore, banks and credit card companies will be interested in your credit history when calculating the credit score, which they then use to determine your creditworthiness. A person’s credit score also determines helps lenders determine your likelihood of repaying your debt. Each creditor in Singapore has his own range of credit score which they use to rate borrowers probability of repaying their debt back, whether to even offer the borrower the applied for credit hence calculate the risk they will be incurring.

        Low Credit Score In Singapore

        Find out if you have committed one of the 4 below listed mistakes which might have lowered your credit score in Singapore.

        If you have in the recent past applied for a home loan from Singaporean moneylenders and got back an estimated amount which is lower than the sum you expected, your credit score might be responsible for this low estimation.

        Your credit score may be one of the key reasons why your credit score has reduced the funding you receive or the high rate of interest you are being charged. By analyzing your credit report you will be able to explain the errors in your credit report or even identify emerging patterns of your credit use.

        1. Missed Or Late Loan Repayments

        When you change your residential address and failed to bring up to date the records, you will not be able to receive a specific bill on time or even not at all. This will mean you end up missing a credit card bill or a utility bill thus ending up settling them after the agreed due date.

        Although you may have well-meant intentions, sometimes the daily life stress takes a toll on you or you may perhaps receive a billing alert on your email or phone but you end up forgetting to pay.

        Both late repayments and missed payments often than not affect your credits scores very negatively. In maintaining your basic records updated and ensuring you do not postpone essential credit repayments can help greatly to ensure you avoid this mistake. Making on-time payments will also help make a noticeable difference in your credit score.

        1. Exhausting Your Credit Card Limit

        When you end up maxing out one or more of your credit cards with cash advances and on purchases, you unintentionally send the wrong message to your potential Singaporean lenders. This to lenders shows as a sign that you are too deep in debt and that you are not able to efficiently handle your credit. By upping your credit line, you will be able to access loans and even then ensure you do not spend all these amounts as it will lower your score thus affecting your credit history.

        In 2014, Singaporeans owned around 9.7 million credit cards both main and supplementary and the figure has since kept growing. This means as a Singaporean you will most likely end up having more than one credit card, therefore it is recommended to spread your borrowing rate across the different cards instead of borrowing against one card only.

        Ensure you also avoid taking large amounts of credit within a very short period of time. This to potential lenders always indicates you are constantly in financial problems, even when you are well capable of making repayments on time.

        1. Focusing On A Particular Payment Alone

        You may have accumulated a large amount of debt and you intend to be rid of it sooner than later. There are several options available for you to repay the debt, from paying off the smaller debts first to handling the biggest loans head on.

        While you are in the process of clearing your outstanding debt, you may end up forgetting or even overlooking a particular credit card debt. This will easily account for a low credit score. To avoid making this mistake, ensure you pay the minimum amount due on all the sources of your credit. Also keeping a reminder ahead of the agreed-upon repayment date and making sure you act upon it, will ensure you do not overlook or even miss a particular credit repayment.

        When you can pay off all the smaller loans ensuring you have less credit to repay therefore you will not have many credit cards loans and advances to keep overwhelming you by both having to remember which bank you owe and how much needs to be paid within a given date.

        1. Family Cards Or Being A Loan Guarantor

        Most people have a helpful nature and when a friend or relative is in financial trouble, you may want to bail them out. This can be anything from providing them with a supplementary credit card to acting as a guarantor for loans, they may be applying for.

        In Singapore, this type of debt does not affect your credit score in any way. But their delinquency and missed repayments on their part may force you to end up footing their bill and at the same time, you will badly hit your credit score. Ensure you are careful and certain the person you act as a guarantor can faithfully repay their loans.

        A more suitable option would be to loan them some of the money they need that they are able to repay back on the pre-decided conditions and terms.

        These little things will slowly add up over a long period of time and one day when you least expect, they end up hitting your credit score really badly.

        If your credit score in Singapore has fluctuated in the past, in analyzing your credit score history you may be able to identify another reason for your lowered credit score, besides the ones mentions above. Important is to remember that your credit score number can save or cost you a lot of money. It is however up to you to ensure it remains strong so that you can access more opportunities to borrow when the need arises.

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          3 Ways To Get Emergency Cash In Singapore

          An emergency can happen at any time. When such a need arises you will, of course, need to remain calm and focus on finding a way of getting funds for your urgent financial obligation. This will put in a position to better weigh your options and choose the right solution for your financial challenge. Among your options, choose one that is easily accessible and feels safe for you. 

          The Singaporean Instant Cash loan

          A registered moneylender would be the option for you to apply for a personal loan when you are in urgent need of fast cash. This is because loan processing is a lot faster than personal loans offered by banks. In Singapore, a loan company often offers short-term loans that can be repaid, either on a weekly basis or every month based on the repayment mode that is convenient for you.

          In order for you to have an idea of the amount of money you can have access to, a loan calculator will come in handy to help you work out the number of months you will need to clear the loan taken and the interest rate charged.

          You will also be able to work with moneylenders who process personal loans online. This application process is a lot faster and can take 30 minutes to 1 day to approve and disburse the loan amount to your bank account.


          When taking this type of a loan, be careful to apply from a registered moneylender by confirming with the Moneylender’s Registry held in the Singaporean Ministry of Law official website.

          Although moneylenders offer assistance when you are in need of fast cash, some loan sharks pretend to offer you financial help but only end up sucking on your finances. Ensure you are able to spot loans sharks to help you avoid being a victim of their scam.


          Credit Card Cash Advance

          This type of loan is easy for you to access as long as you have a credit card. What you will need is to key in a one-time PIN. This you can do from any of the affiliated ATM within the island to access cash. The withdrawn money is charged directly to your credit limit. Ensure you withdraw cash within your cash advance limit, which is often lower than your credit card’s credit limit.


          The cash advance is only available to credit card holders whose credit standing is good. It means you need to be able to pay the monthly bills on your credit card on time.

          Credit card advances are short-term loans issued by banks. Therefore, expect high-interests charges for you applied from the moment you withdraw the cash. Credit card advance interests often range from 28-29.9% each year.

          The interest charged on a cash advance is compounding. Meaning, it is charged to the existing balance and not the principal amount already withdrawn. The longer the credit card cash advance remains unpaid, the higher the amount you will be required to repay. This can later affect your credit score as well.


          Line Of Credit Or Credit Line

          The line of credit is a cash pool that is readily available for an individual in need of quick cash. Like the credit card advance, you will be required to go to an ATM machine and withdraw the cash amount you want. This cash can be used anytime you require some fast cash and for any financial commitment and obligations, you may have.

          How it works

          You will be required to visit your bank and apply for a line of credit also known as a credit line. Your bank will then ask you to provide the necessary documentation for them to assess your creditworthiness. You will then be required to wait for several days to get your loan application approved.


          Although you may be able to have access to instant cash, you will be required to first make an application for the loan, and then stay for some days for it to be approved.

          Once approved, the bank will issue you with an ATM card. The card will enable you to access the loan amount on the line of credit account. You are able to have a loan of any amount without incurring a withdrawal fee. However, the loan amount attracts an annual fee whether you make use of the cash or not.

          In order to qualify, you will be required to be creditworthy for a bank to extend this service to you. This is because the banks are at a high risk averse where loans are concerned. Some banks will require you to offer them some form of collateral while others will give this loan type to any of the bank’s longtime customers.


          Personal loans are your best choice when having access to fast cash is concerned. For emergency situations, credit card advance is a convenient way to go but the inability to repay the loan amount on time can put you in serious financial distress.

          The line of credit will require you to prove you are creditworthy as well as have an existing line of credit account for you to use it. Opening a line of credit account takes days while applying for a personal loan takes a few hours.

          When applying for emergency cash, ensure you familiarize yourself with the limitations and benefits of the options available to you. It is advisable to first shop around to ensure you get the best solutions possible despite the emergency and the pressure it comes with.

          Ensure you read through all terms and conditions of the loan type you apply for to avoid making mistakes. Even though you have an urgent need for cash, do not let the urgency of the situation lead to your financial downfall.

          Above all, it is always advisable for you to have an emergency funds account. Despite the fact that finding ways of borrowing cash can be helpful in raising the needed cash amount, having ready cash savings is certainly more helpful in any situation.

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            Applying For A Business Loan In Singapore

            Starting up a new business is a challenge and it will always require you to put some money into your company from some of your personal savings.

            You will also need to put in some amount of your own personal cash into the new business, even when you are well able to get some cash from your friends, family and from other investors.

            When joining and starting a new business venture, the capital contribution is, in general, a very necessary and important step. Potential creditors in Singapore will always want to be certain that you have some of your personal security mostly in the form of some personal cash injected as a stake in the new business. The money used as capital whether it’s a loan or a bonus from your company or as an investment has tax implications and impact in each of these circumstances.

            Structuring Financing Options For Your Company

            In Singapore when you need to lend-out some money to your own business or company, you will be required to have a lawyer draw up some paperwork for you defining the status of the outstanding loans you may have, the repayment plan agreed upon together with the consequences of non-repayments of the existing loan. It is supposed to be clearly stated that the existing loan is a commitment and that it is binding on the part of your business venture.

            For the purposes of taxation in Singapore, a loan from your company or business and a loan from you is an “arm’s length” business deal, which will already be treated as another debt. The interest incurred on the debt accrued is equally taxable to you as an individual and can and should be deducted from the company individually as your income.

            The principal loan amount applied for cannot be deducted to the business apart from when it makes use of the funds available to acquire more capital assets. In Singapore, the capital assets meet the basic requirements for getting depreciation deductions. The return of the principal amount of the loan applied for cannot be taxed because the loan amount was issued after tax has been applied to the amount of money taken.

            Investing In Your Business

            In Singapore, putting some money in your business is the other option to investing the money. Therefore, there no taxation to you should you receive your contributions. When you withdraw additional money in the form of dividends, bonuses or draw, the amounts are subject to taxation. In Singapore, there are no tax implications to the company on the investment made, except when is for the purchase of depreciable assets.

            10 Factors You Should Consider When Making A Contribution To Your Business Or Company.

            1. Ensure you consider the labels on the paperwork you use. In Singapore, the document stated needs to show whether it is financing document or investment documentation.
            2. Ensure you consider the source of the loan payment. You should define whether the loan payment put on a loan is realized as a kind of dividend or as a payment.
            3. You should also consider the right of the identified lender in applying for a payment from the business or company. This needs to be written in the loan documentation. In Singapore, such language and information will not often show up in a share of stocks document.
            4. Take into account the lender’s right to get involved in the business management process. In Singapore stockholders usually tend not to take part as a prerequisite for acquiring shares in the management of a business or a company.
            5. You will also need to consider the maturity date of the loan applied for. The clear and precise indication of a given maturity date implies an existing loan.
            6. Ensure you carefully consider the lender’s right to amass assets alongside the usual business lenders. This information and language are concerning the collection and bankruptcy policies of the company and it will need to be made available in the company files.
            7. It is good to be clear on the involved parties’ intent. The existence of documentation needs to clearly state and show such intent and it will be helpful with this particular component of a business venture.
            8. The satisfactoriness of a borrower’s and of the company’s source of capital. Simply put, the principal sum applied for as a loan needed ought to be equally reasonable.
            9. Ensure you take into consideration whether the stockholder’s loan amount to the business venture is a proportion to the equitable ownership in the company they are involved in.
            10. It is also important to take into account the borrowers and the businesses’ ability to get and receive loans approved from other lenders.

            Despite the consequences of a loan to a business or an individual, it is necessary for you to allocate and indicate whether your contributions are as a capital investment or a loan and attach the required paperwork to support such a claim. This will help in clarifying the tax impacts and implications of the business transactions made and also prevent any potential problems with the Singaporean revenue authority.

            Where You Can Get A Business Loan

            There are plenty of places you can get a business loan for your company, depending on the loan amount as well as your company’s financial situations. For a large loan amount with longer repayment period, banks come naturally to mind while for a quick cash flow fixer, you can approach moneylenders as they are less stringent when it comes to approval process and time taken to approve your loan.

            The Comparison Between The Threats Involved

            Each of the selections has a risk implication attached to it. When the company or business is declared bankrupt and should you also have lent the said business some money, you then automatically become a lender. This means that you might or might not be able to get your loan money back from its liquidation depending on whether the loan given was unsecured or secured.

            In case the company declares bankruptcy, the flip side would be the business owner’s investments are totally at risk. In this threat scenario, there is little or no possibility of recovering the funds you have personally invested in the business venture.

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              Credit and Credit Card Rating

              The best way to Improve Your Credit Rating

              As a prospective and consumer borrower in Singapore, there is no dearth of options in regards to lenders and loans. However there’s one factor that could limit your loan options: rating or your credit score.

              Your credit score shows your capacity and history as a borrower. An excellent score means you might have the ability to cover debt and also the discipline to pay them on time. Excellent score also speaks well of your financial status. A good credit rating gives you better interest rates on your loans, mostly because your credit history suggests that you have no financial and investment risk for your lender.

              A poor credit rating can mean a lot of things. It may mean you have had a number of loan payments that are late and defaults, for instance. Poor rating leads to rates of interest that are equally awful, since the investment risk is being compensated by your lender by charging you higher interest rates. While there are credit and loan choices for individuals with not so impressive rating, it is perfect for you as a borrower to work in your rating so that you can get better interest rates.

              Credit report evaluation

              Every borrower that is interested should assess their credit reports prior to taking out a loan. This is to ensure that the reports provide accurate financial information. Your report could contain late payment updates, fraudulent applications, and discrepancies. You’ll be able to employ a credit repair service if your credit rating does not correctly represent your credit history.

              Your financial advice will be assessed by a credit repair service via your credit reports, and check for discrepancies. The repair supplier will forward your corrected information to the Credit Bureau of Singapore if there are inconsistencies. It’ll automatically update your credit rating, once the corrections were approved by the agency.

              Consider whether you really want credit repair before getting this service. Credit repair does not automatically mean your credit score is likely to be enhanced. Evaluate your reports for any discrepancies that are possible. Only in the event that you believe there’s a discrepancy then only you get credit repair service.

              Be cautious of credit

              Your rating is not completely dependent on your credit history and your financial capacity. Most of the time, your number of credit that is open can impact your credit score and credit capacity.

              Banks, lenders, and sometimes even credit bureaus typically evaluate how many available credit lines you have. This implies that the amount of bank cards and charge cards you’ve will be assessed. If you got many credit cards even if you have been paying your accounts on time, banks and lenders could deny your loan application as well. This might just slightly impact your credit rating, but nevertheless, it’s going to substantially affect your capacity to borrow or get credit and loans.

              The truth is, when trying to enhance your credit rating, you should avoid using credit cards at all cost. This goes for charges cards too, which are inherently worse than credit cards.

              But credit bureaus not only assess credit payments and your loan. All your debts and unpaid balances are taken into account when institutions and financing agencies compute your credit score. This includes other similar contracts along with mobile phone contracts.

              Develop your credit

              The most effective method to enhance your credit score is to construct it. This works both for those with no credit history and for individuals with credit ratings that are extremely bad.

              With a higher interest rate, although despite having a bad credit rating, you can probably still get financing. Proving that you’re capable of handling financial obligations is a good way to up your credit history. This is very important because payments that are late can negatively make an impact on your credit history.

              Inform your lender or your bank immediately in case you believe you will be late in making payments. Lenders and banks will probably be more than willing to renegotiate your loan terms. They would rather change your loan terms so that you can avoid default. Many borrowers believe lenders and banks favor defaults, especially with guaranteed loans. But cash would be preferred by lending institutions as an alternative to non-financial, non-liquid assets. Lending institutions are somewhat more inclined in the event that they are informed by you of your potential financial difficulty beforehand to renegotiate your loan terms.

              Take the time to make yourself appear financially stable. When in the procedure for fixing credit rating or establishing credit rating, do not apply for loans frequently. You’ll not desire a financial institution or lender to understand which you happen to be denied a loan 10 times in the past 12 months. This provides the impression that you are in grave need of money, making you appear financial unstable and also desperate. Check your credit rating at least one time each year to see developments, any changes and, hopefully.

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