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Should You Take A Personal Loan For Your Vacation?

Chinese New Year is nearing and that means a long weekend. You certainly could do with a break, and if at all possible someplace abroad. In the current times, stress at work and ruthless competition can be reason enough for you to want to take that trip to the corner of the world to unwind. But before you jump in there are a number of factors that you need to weigh before making your financial decision. It is worth noting that such trips do not come cheap. That is why you will need to have a substantial amount of money to make the vacation worth your while.

In the ideal setting, taking a vacation would not be a problem since money wouldn’t be the issue. But the reality is not so, even with months of savings, the money may not yet be enough to cover the whole costs for that expensive vacation you so desire.

When planning a holiday travel and not having to go broke or max out your credit card is possible with a personal loan for vacation. There are moneylender in singapore who would be ready to assist you. But before you make this call here are some tips to help you decide.

The Amount Of Money Left In Savings When You Pay For The Trip All At Once

This consideration is the most important when budgeting for your vacation. Given that you pay for the whole vacation all in one go, look at the amount of savings that remains in your account. You need to do your best to have at least an amount that can cover 3-month expenses left in savings. If paying for your holiday will leave with a figure below that, then you will be walking on thin ice, financially. You need to bear in mind that accidents can and do happen at all times, it could be kitchen pipes bursting, or the laptop you urgently need breaking.

Make sure you make a cautious financial decision consider what is more important and urgent and what can be delayed. When what you have saved isn’t enough, it could be better for you to take out a personal loan from a licensed moneylender. This you can repay monthly for a given time, and you get to retain your savings.

Of importance is you make sure that you make comparisons between the different personal loans, to help reduce the interest you will pay. For instance, HSBC will lend you a personal loan for your holiday of about $5,000; the monthly instalments are a low of $436 and run for a year and an interest of 4.49% per year.

Consider Your Expense Ratio After You Have Taken The Loan; It Shouldn’t Go Above 30%

Always check your ability to manage the stated loan obligations before you take out a personal loan for your vacation. One guiding rule for you follow is keeping the expense ratio at 30% and below at all times.

For instance, assuming that your monthly income is $4,000, a 30% expense ratio will mean your total cost of every one of your expenses (phone bills, utility bills, personal loans, etc.) should not go above $1,200.

At this point what you will need to carefully consider is when the personal loan for your vacation will make your expenses go above this threshold. In such a case you may have to either make use of your savings or postpone your trip until you have reduced your existing debts.

Whether You Able To Settle A Specific Vacation Cost Using The Loan

As far as loans are concerned, you need to try and work out a balance. Since you are able to borrow enough money to cover the whole vacation, doesn’t imply you need to. As an option you may consider paying for some of the expenses using a loan, to help you save money and get more disposable ready money on the vacation.

For instance, if the most important r cost is $200 per night hotel accommodation, then think about taking a loan specifically to cover this. You can pay for the other areas of your vacation in cash.

The important reason behind mentally compartmentalizing the loan this way is because it will stop you from excessiveness. If not, you may end up getting the full loan (possibly more than you will need), and end up spending it all on impulse buying (thinking that since you will be paying for it anyway, why not spend it all as well!)

Where You Are Sourcing Your Loan From

Whether you will be getting the loan from a line of credit or a personal loan. It is advisable to not take your loan off your credit card. One point to keep in mind is to never take a loan on your card of credit when you are able to access a moneylender personal loan. This is simply because their interest is much higher at about 26% each year compared to the average 6% interest rate per year charged on personal loans.

Credit cards should only be viewed as modes of payment, and then you repay the whole amount right away. This way you will get rewards and money back and not pay any interest.

Any real borrowing needs to be limited to taking out a personal loan.

Consider Whether You Will Have A Decent Spending Budget Left When You Don’t Use a Loan

Another aspect of your planning that you need to be keen about is whether when you pay for the vacation in cash, you will have some reasonable amount left for you to spend. It wouldn’t be ideal for you to go abroad with little amounts of money, only to end up spending the whole vacation in cheap motels and skipping lunch any other day.

Considering the rather high prices on accommodations as well as flight tickets, you could as well use a little more money and have a great trip, than spend something small for a terrible one. If the loan can make it happen for you and is within your expenses, then it will all be worth it.

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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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      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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        4 Serious Warning Signs Singaporeans Often Choose To Ignore When in Financial Trouble

        In the perfect world where financial difficulty is a thing of the past, you would have all your bills paid promptly and would never need to use loans since money would be there each time you require it. Living in an economic utopia is a reality for some individuals in Singapore, yet for most dealing with obligations and financial needs – loans, bills, family etc- and yet have time for fun is a tough balancing act.

        Every person in Singapore is concerned about money. In such economic tough times, getting into financial difficulties seems to be inevitable. Even then financial trouble does not just happen out of the blues. But by generally having bad financial practices and habits, it can be quite hard for an individual to see the red flag signs that you could be drifting into financial thin ice.

        Although most people would like to repay all their debt, make more money and also adopt healthy financial habits, it could be that they don’t know yet that they are headed for a financial snag. Below are some warning signs that show you could be in deep trouble, financially.

        You Are Dependent On Someone Else To Cope

        If you are having a good time enjoying your life, does not mean it is the same for other individuals in your life. Very many people among us are dependent on others to help them cope with their lifestyles. And this is not in reference to those people who are under the support of their parents, seeing that Singapore is one place in which family wealth remains in the family.

        But when you are constantly borrowing cash from your friends and ignoring their pleas for you to repay it, or you rely on your dates to fund your lifestyle, it may be a time you did some serious soul-searching. Because once people have wised up and begin to stay away from you, it will be a rude awakening for you and picking up the pieces by yourself after everyone has left won’t be a walk in the park.

        You also need to look at a way that you can be able to handle your bill with minimal assistance from anyone. You may consider taking a second job to supplement your pay if need be.

        You Frequently Make Use Of Personal Loans And Payday Loans

        Payday loans and personal loans have their uses and time when they are needed. However, when you find yourself constantly taking out these loan types way too often, it can only mean your financial situation seems grim. Personal loans are among the most expensive methods of borrowing money, they are also an indication that your salary is too low to cover all your monthly expenses.

        You can overlook having taken any of these loans once or twice for an emergency and a one-time expense, but when your moneylender starts greeting you like you were an old friend each time you appear, it may be the time you took some drastic measures and did an analysis on your financial standing. You need to look at option that will help you turn around your finances. And this you can do by knowing what your financial status is like and areas that need some of your attention.

        You Hold A Revolving Outstanding Credit On Your Cards

        Wise spenders do not use their credit cards for the reason that they don’t have the money to pay up. They make use credit cards for purchases of things they know they are able to afford but only do so for them to build up their credit score and acquire rebates, air points, and rewards. This simply means that having a revolving credit balance on a credit card, regardless of how small, may not be smart.

        You need to be paying off all your credit card expenses in full for every month. When you are holding a revolving balance on your card make a point to repay it immediately. You need to consider the high interests it attracts, and the high possibility of the debt accumulating that it will be hard for you to manage. This will affect your credit rating as well as get into to the endless pit of debt. When you are not able to pay it off, your debt will simply spiral out of your control.

        You Are Failing To Pay Your Loans

        When you already have an existing loan for a home loan or even a car loan yet you are finding it difficult to pay your monthly instalments, then you clearly are in a serious financial emergency. In such a situation you risk losing your property and even being declared bankrupt. If you have found yourself having to take out a loan amount to help you pay off a personal loan you owe, it may be the right time to consider very carefully on whether it would be the right move for you to sell your property or car, and more so if you still a lot of years left to pay on your home loan.

        Failing to pay on your personal loans or even your credit card bills is very serious. These are some of the issues that get people to end up being bankrupt. Since you have diligently avoided picking the call from your money lender is not a guarantee that you have successfully escaped the debt collectors. This is because the next thing you will realize is someone knocking on the door on the authority of the law.


        Having bad financial practices and habits can make it quite hard for an individual to see the red flags to show that you could be drifting into a financial snag. Many people are dependent on others to help them cope with their lifestyles. This is a major red flag because you aren’t able to handle any of your bills.

        Constant taking out of loan can only mean your financial situation seems grim. And holding revolving credit balance on a credit card, regardless of how small, does not make the situation any better. It is important that you take time to evaluate your finances to help you come up with a working solution.

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          Never Say Never To Personal Loan

          A common misconception for many Singaporeans is that personal loans simply cause you to accrue more debts. It’s for this reason that many people stay away from loans as much. But what you really need to understand is how it works and the reasoning behind the idea that having a loan means more debts. It is safe to say that getting a personal loan issued by legal moneylender may be a requirement since it helps you deal with the difficult situation by offering you some extra money.

          When you encounter urgent situations such as paying an urgent bill that can’t be delayed or car repairs, then getting a personal loan to cover the expenses is not bad at all. By taking out quick cash personal loan will spare you from the stress of dealing with urgent emergency situations that need your immediate attention.

          The best approach to personal loans is by treating it more as a tool. This loan is your way out of a tough situation without getting yourself in more trouble. The best way to handle it is by repaying it punctually, which not only prevents you from getting penalties but also serves as a way of improving your credit score.

          Here is a list of some reasons why taking out a personal loan from a licensed moneylender may be useful to anyone.

          Opens You To More Opportunities

          If you are considering undergoing further studies and training to open yourself up for a career opportunity, a personal loan will be useful to help cover the study fees payments you have to make as you pursue these goals. As an alternative to taking funds out of your savings account, a personal loan will be a useful option when you require cash for your training or tuition fee. At the end of it all the personal loan is well worth it since after you are through with the training, you may perhaps get a job promotion. This will impact your salary positively and more career opportunities will certainly come your way.

          Get Extra Cash From Personal Loans

          Experiencing emergencies in life is inevitable even then There are moments when you do need some cash to pay off an urgent expense be it’s for your vehicle, health, and also something else. Therefore when such times do arise, a personal loan will offer you some extra credit you require – and fast.

          But ensure that you only use personal loans in times of emergencies. Getting it for not-so-urgent reasons like for buying an expensive gadget or even branded apparel is not ideal because you are always able to save up some cash on such purchases. But when you require additional finances for a medical bill and utility expenses that have to be paid off at once, then personal loans are a viable choice for you to consider.

          Grow Your Credit Score Using A Personal Loan

          Your eligibility for a loan you may be planning to take out in the near future will be affected by your credit score. Most banks in Singapore consider your credit score as a factor that determines your creditworthiness. If your credit score is poor, then it does not make you too appealing to money lending institutions here in Singapore. This for a borrower means that they will have a problem when they need to get a loan yet your credit history isn’t all that positive at that time.

          Therefore, if you truly want to improve your credit rating, you need to work towards doing prompt repayments on your loan. Also, consider borrowing small loan amounts and you can make regular repayments for it, then it won’t be long until your credit score gets more favourable. Following this, you could even be eligible for a higher loan amount, which will work to your advantage.

          It Is A Safe Source Of Credit

          In many instances when people take out loans, it is rare for them to default on their repayments. This is because they are always capable of repaying their personal loan as there are low fees involved. Together with the alternative of stretching it into longer terms. Even then insurance option can come together with the personal loan. There are instances when the insurance is $100, thus covering the whole loan you apply for. This for a borrower means that when the occasion comes that you aren’t able to repay your loan, the insurance cover will be able to take care of the remaining outstanding amount you have to settle.

          Personal loans come with the lower interest rate, additionally, there are some promotions offered by some moneylenders and banks. This makes the deal sweeter because of the rate you get on your loaned sum. There are a few banks that also offer zero interest personal loans running within 3 months to about a year. The suggestion here is that you need to look for loans that come with reasonable interest rates appropriate for your financial state. Afterward, make sure you review the condition and terms of your loan provider so that you can avoid any difficulties with paying off your debts.

          Reduce Stressful Situations By Use Of A Personal Loan

          If you have an upcoming occasion that requires that you have a certain sum of money to pay for the expenses that it comes with. It could be your wedding day is coming up, or it could be that you are to go through a surgery. These two events are both connected with huge expenses. Taking a personal loan will be helpful for you when you have to handle the tough moments.

          If you have some savings, it is not a good idea for you to use up all your savings to pay for such unforeseen expenses. Having a personal loan will let you handle these life surprises and without causing you any financial stress. By making smaller payments each month, you will be able to overcome the financial challenges and be able to keep your life savings with no problem. Be sure to pay off your loan on time, so you won’t encounter more financial stress and be able to get rid of debts within the shortest time possible.

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            How Credit Scores Are Calculated

            A lot of people in Singapore overlook the significance of the credit score and simply don’t think about it at all. The individual credit record is in fact quite important since it’s used to review whether you qualify for a loan; therefore it is a significant source of information.

            Particularly during times when you want to access some quick cash, for a personal loan or a mortgage loan. Although you may possibly assume that you have not done anything to jeopardize the credit score, but little things like late repayments and also forgetting to repay the credit card debts may actually have an effect on your ability to get loans.

            Credit reports in Singapore are kept by the Singaporean Credit Bureau (CBS). The credit Bureau maintains full-industry uploads from all key financial institutions and retail banks in the country. CBS keeps a collection of information related to credit between the involved members and then presents a full risk report of potential borrowers to their credit providers.

            With this information, credit providers are able to establish the chances of a customer defaulting, therefore, improving their risk evaluation capabilities.

            What Story Your Credit Score Says About You

            A score is assigned to you and it comprises of a 4-digit number which is depending on your payment history from loan accounts you hold. This score ranges from 1000-2000, whereby individuals who have a 1000 score are more likely to default on their payment. While those with scores of 2000 have the lowest possibility of getting a delinquency standing. A person’s score is one part used during the process of loan application.

            Most moneylenders also review your worthiness to get loans using other additional factors, like your annual earnings, litigation/bankruptcy information, the length of time you’ve been employed, and all the accessible number of loan facilities. Using the score, a risk score is then assigned to you. The best credit grade possible is AA. While grades of BB with CC indicate that you may have several delinquencies in your payments, and D grades and below are possibly caused by defaulting.

            Find Out Your Loan Choices With Moneylenders

            When you wish to obtain a credit history, you could do so for a fee of $6.42. However, when you read through the credit details and discover that you don’t fall in any of the above-mentioned grades. There are other gradings known as the “Non-graded Risk Grades” which are also important for you to know.

            Non-graded Risk Grades


            In public record mark (Given whether you trade or not). It means there may be in the past and current writ summons or bankruptcy evidence filed not in favour of you


            HZ risk score is given when there is outstanding debt balances >=$300. You may also hold accounts marked with one of these grades: D: 90 and above days past due date; F: closed account with outstanding balances; H: involuntary account closures with balance /surrendering of security having an existing balance; R: closed and restructured loans; S: closed, with a negotiated settlement before the charge off; W: closed for non-payment recorded by Member


            An inquiry records without existing Public Records and Trades. It means only personal-enquiries to no enquiries have been made from banks since no credit records exist.


            Only dormant operation “Other”, Bridging Loans or a Margin Trading accounts exists. It means either the trade accounts have been closed or only a bridging loan and margin trading accounts. Or you have accounts marked ‘Others’ by the lender.


            Not enough Credit Activity. It means ‘very limited’ data is available such as your Credit Applications as well as Accounts Status records such, or the score can’t be derived.

            Information From Singapore’s Credit Bureau

            Given that you are rather young and have not applied for loans or credit card, you may find yourself getting a CX score. This is because there isn’t much credit activity information regarding you. It for this reason that it’s important you learn ways you can “dress up” the credit rating ahead of sending your loan requests.

            Factors Influencing Your Credit Grade

            Your credit grade can be affected by several factors which include:

            1. Pattern of Utilization

            The utilization pattern is the credit amount used or even owed on an individuals account.

            2. Recent Credit Taken

            When you have recently booked loan facilities within short periods of time, you may come across as though you maybe over-extending yourself to potential moneylenders. It is for this reason advisable that you do not take out many credit lines within short periods of time.

            3. Delinquency Data on your Loan Account

            There being records of late payments on your credit or loan will more likely decrease your credit grade.

            4. Credit History of Your Loan Account

            Individuals who have long and well-established credit record are considered to be more reliable borrowers compared to those with no or a limited credit history. It is for this reason you are advised as a minimum to have a single credit card. With which you hold a long credit history and maintain prompt payments on. The score is calculated for a period equal to a year of your account repayment activities. This will also include defaulted and closed accounts.

            5. Available Credit Accounts

            This is the several credit accounts available to you. This includes both active and open accounts.

            6. Loan Enquiry Activity

            It shows the how many current loan application enquiries were created in your existing credit account. Every time a moneylender or a bank pulls out your credit history as a response to an application for a loan, they place an enquiry on your credit file. When you have several requests in your loan file, it shows that as a borrower you are attempting very firmly to borrow. This, as a result, will affect the likelihood of your application being successful.

            Quick guidelines for Improving your Credit Grade

            • Constantly pay back your credit card debts and loans on time
            • By no means do not fail to pay your credit lines and loans
            • Avoid sending out a lot of credit applications or loan enquiries at once
            • When you currently don’t have a credit account, get one and then build your credit standing slowly by making prompt payments.

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              Should You Save Or Repay Your Debts First?

              In many occasions, Singaporean are caught up in the dilemma of whether to repay their debts or save. The answer to this may seem obvious to some individuals but once you take a harder look at your financial standing that might change. It is important that you take time to look through your credit reports for you to have a much clearer picture of the standing of your personal finances.

              There are several people in Singapore who have both savings and debts account running concurrently. Therefore, to such individuals, they have familiarized themselves with the situation of holding debt and having money saved up in their savings account. A lot of people in Singapore hold some type of debt in their lives. The debt may be a short-term moneylender personal loan, a car loan, a study loan, or maybe a mortgage loan.

              Although you may not be in a position to repay the mortgage loan considering it is a large sum of money involved, there are in fact some ways for you to pay off you study and car loan using your savings. But on most occasions, people prefer not to because of various reasons. Some of the fears people may have included being afraid that they need to have some ready cash available to them in case an emergency happens. It is for this reason that some people would rather spend money paying for interest on loans for them to have a bit of safety by having money in their savings account. Even then, there is really little logic in such an argument.

              Read on for you to better be aware of some pointers that will help you resolve your dilemma on whether to save or repay your outstanding debts.

              The Price Of Debts

              In making use of a very easy example this will show you the amount of money you may be forfeiting when you are holding both a savings and debit account:

              – $2,500 worth of credit card debt for each year will cost you about $550 in interest

              – $2,500 worth of savings for each year will be earning you about $10 in interest

              Therefore, whereas you are not earning a large amount by having the $2,500 in a savings account, you would be saving yourself $550 in interest when you take the $2,500 in the savings account and paying off the existing credit card debt. Thus it is easier for you to pay off your outstanding credit card debt and save the $550 instead.

              This rule holds true considering the charges of debt are normally a lot higher compared to any interests you earn from saving money in your deposit account. Nevertheless, there are a few exceptions to this rule.

              These exceptions include:

              1. Early Payment Penalties

              There are some debts, like the moneylender personal and mortgage loans which involve you in taking them for a minimum period of time. To which when you make early payments will attract a penalty.

              In such occasions when you are paying off the existing debt it instead attracts a penalty, it is better for you to keep your money in a savings account. This is until you are able to clear the debt without incurring any pre-payment charges.

              It is always advisable to make this clarification before signing your loan contract. This way you are aware of the additional you will be taking on in case you choose to do an early payment.

              2. Interest-Free Credit

              It is important for you to recognize that most debts will cost you more than the interest amount you may earn from having a savings account. Even then there are some debt types that do not fall into this category. These debt types include the interest-free debts. It’s probable you may not be aware of this, but there are several products that will offer you interest-free debt.

              In essence, these products offer to loan you cash at no additional cost. The interest-free debts available in Singapore include the balance transfer cards, various student loans, and the 0% interest credit card payment plans.

              For example, most student loans are in general interest-free as you are studying. And banks only start charging interests once you have graduated. One smart way for you to handle your money is by putting whatever money you may have in your savings account or even a fixed deposit. This is all through your studying period and then pay off a large amount debt as you can once you have graduated. Of importance is that you need to make payment of a debt a priority for you given that debt entails a cost.

              The key here is to start by paying off the most expensive debts first. Some of the expensive debts may include moneylender personal loans and credit cards. One thing to note is that mortgage loans are a bit different because their rates of interest are somewhat lower. But since of the large amount you are taking out, it may perhaps be difficult for you to pay them off at once.

              What you could do instead is to repay as much of the debt as you can following the lock- period. And also before you can refinance this debt this way you will only need to take on a much smaller debt thus greatly reducing your interest cost.


              A lot of people hold some type of debt in their lives. The debt may be a short-term or even a long-term type of loan. Even then there are a few people in Singapore who keep both savings and debit account running concurrently. It is important that you recognize that the interest charges on debt are normally a lot higher compared to any interests you earn from saving money in your deposit account.

              Nevertheless, there are a few debts that are an exception to this rule. These include the interest-free debts such as student loans. These debt products offer you an interest-free debt of which when you make early payments you end up incurring a penalty.

              In such cases, you may consider putting your money in savings to later use once the lock period has elapsed.


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                Practical Steps To Lower Your Debt-To-Income Ratio

                Most moneylenders in Singapore use the debt to income ratio as a way of measuring an individual’s ability to manage their debt repayments and other payments in each month. This is intended for comparing your debt amount you owe against your overall income.

                Having a good credit score may always not guarantee that you will get a loan from a bank or other money lending institutions. Often Banks reject loan applications from individuals whose debt-to-income percentage are high. Therefore, it is important for you to know what debt-to-income ratio is and why it is as important to you as a borrower

                The DTI ratio is a key factor that most banks and moneylenders consider before disbursing loans. Nonetheless, it isn’t part of an individual’s credit score. DTI is worked out by dividing the total monthly debt payments by total monthly earnings.

                When your debt-to-income ratio is more than 36%, it means that you have a high DTI. Moneylenders and banks use the DTI to establish your ability to pay back your payday loan. Here are some strategies to help you lower your DTI ratio.

                Clear Your Smaller Debts First

                It is advisable that you start by paying off all your smaller debts. This is regardless of the amount, from hundred dollar credit card balance to any other small loans. Keep in mind, that even smallest debt repayments are indicated on your loan account, which thus raises your DTI ratio. Make sure you pay off the small debts in full. When you follow this strategy, you are then able to decrease your debt much faster such that in the end, it will lead to your DTI being lowered.

                Also, you need to consider debt settlement as a key option for you to reduce the high debt-to-income ratio. When you take on a debt settlement plan, you are able to give a lump sum of money to your lenders. This way you will reduce the actual payday loan amount you owe.

                This also contributes positively to reducing your DTI ratio thus giving potential moneylenders’ confidence in your ability to repay the loan taken. This will also make them approve your loan applications in future easily and fast.

                Use A Low APR Card To Repay Credit Card Debt Of The Higher APR Card

                The Annual Percentage Rate (APR) is the actual interests you pay each year on your credit card balance. This is the right way to consider interest rates charged. Thus you should avoid examining the introductory plan which allows you to pay lower interests on your credit card balance.

                Your credit card issuers always give low APR cards to individuals who have a good credit score. You can contact your credit card issuers to inquire about the lower APR card. Once you receive your low APR card, make sure you transfer the outstanding credit card balance from the higher APR card to the new card that has a low APR.

                Once you do this you will end up paying lower rates thus reducing debt. This also leads to lowering your DTI ratio. When your credit score is bad, credit card issuers may not give you low APR card. In such cases, you may approach legal moneylender for a small loan then use it pay the credit card outstanding debt with high APR.

                Refinance Your Loan

                When you have a high debt which may include home loan, auto loan and another loan type, you could try refinancing it. For this, you need to contact your creditor and ask for your repayments to be extended to a term that is to lower the debt instalments for each month. And lower the debt-to-income as well. Approved moneylenders are said to offer loans of up to $20,000 though some may give more. You need to approach legal lenders with a payday loan application to see the loans they can give you.

                You can also transfer your loan to a plan you are able to pay using a credit card which will help you pay one of the smaller debts you owe using the cash advance option. Despite the fact that the amount you owe stays the same, your debt instilment for each month are greatly reduced after you have closed one instalment account

                Withdraw Money From Your SRS Or CPF Account To Pay Down Larger Or Smaller Debts

                The Supplementary Retirement Scheme (SRS) is useful when you are cash-strapped and can’t get payday loans from banks. Therefore, you need to think of withdrawing money from CPF or SRS account. But, you should know the cash withdrawn from your SRS account will be taxed. So weigh your options before taking funds from the CPF or SRS.

                You should draw a plan to ensure the DTI is successfully lowered. Also look for strategies that will work for you then follow it diligently.

                Increase Your Income

                In order for you to increase your monthly earnings, you need to consider taking a second job. There are many job offers in Singapore today hence do a good such for a job that will not affect your usual 8-5 job timing. Any employment that increases your earnings for each month will positively assist in doing away with your debt easy and fast. It will also help reduce your debt-to-income ratio on your personal finance.

                Asking for a pay rise will also increase your income level and it’s also a lot easier for you to do. You may also consider turning your hobby into a business, this way you are able to bring in more money. The goal is to offset all your urgent debt you owe and in turn, reduce your DTI ratio.


                Debt-to-income ratio-DTI is not part of your credit score. It is instead a ratio that banks and moneylenders use to establish your ability to pay back the loan taken. It is advisable that you start by paying off all your smaller debts regardless of the debt amount. You could also contact your credit card issuers for the lower APR card. Once you receive it, make sure you transfer the outstanding credit card balance from the higher APR card to the new card.


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                  4 Tips To Make Your Payday Loan Go Smoothly

                  Payday loan types are useful for borrowers and a lot of times are convenient when you urgently need cash to resolve a passing financial crisis. Through payday loans, you are now able to repay your rent and other everyday expenditures that can’t be delayed. This type of loan is generally the fastest way to get ready money from a certified moneylender in Singapore and this does not put you through in-depth credit inspection and utterly long approval processes. Then again, most moneylenders will not just give the loans to anyone who submits an application to them.

                  For you to ensure your payday loan request is approved by a moneylender available in Singapore, you need to meet all the requirements. Also be sure you have checked your finances to confirm how you will be able to repay the loan off without causing you any strains.

                  There are some occasions when the payday loan offered by the licensed moneylenders in Singapore is the best option for a borrower. So that you can ensure that your payday loan goes as smoothly, below are some guidelines that you will need to bear in mind.

                  Ensure That The Other Options Cost Less Compared To The Payday Credit

                  In order to illustrate the point, here is an example. Let us assume that you didn’t get all your whole pay because of an error on from your employer’s end. This means your employer will send you the remaining sum in a few days. But the setback is you by now have 3 bills that need to be paid by today. And when the draft bounces, you will be charged fees.

                  At the same time, you will also be charged for the returned draft costs to the company which you owe. Let’s say the bank charges $10 fee for any bounced draft and the company you owe charges $10 for returned draft fees as well.

                  Therefore, in this case, the whole amount you will pay at the end, in fees for all the 3 bills is $60. Thus in case, your payday loan will cost you $70, it is advisable that you do not take it. In reality, most banks charge a fee more than $10 in penalties for each bounced draft, and this also applies to companies.

                  In reality, the total amount you will incur in fees and fines may total to several hundred Singaporean dollars. Thus said, when then the fees charged on a payday loan are much less, the right thing for you to do would be to apply for the loan.

                  Repay The Whole Payday Credit Using Your Next Income

                  Make sure that you do not to extend your payday loan. In so doing your loan will become costlier than it actually is. Payday loans on average have rather steep interest rates. Therefore when you delay in making full payments, you may end up paying a good deal of extra money.

                  For that reason, make sure that you don’t take more money than you are able to repay using your next salary. Also keep in mind that once you’ve taken enough loan, resist the desire to extend the time period of the loan.

                  From this what you need to be able to reimburse back the loan as you had pledged, is some cutting back on your daily expenses and lots of financial discipline.

                  Don’t Take More Than You Require

                  One thing borrowers need to be aware of is that payday loans from moneylenders are for meeting short-term financial emergencies or a crunch. Thus they are not the perfect solution to long-term financial problems.

                  As a result, it is important you use payday loan wisely. For example, when you are faced with unexpected but not a big expenditure which you can’t put off in until the month ends. You may consider getting a payday loan. This will help you take care of this expense.

                  On the other hand, if you plan to go for a week-long holiday but you may not have the necessary funds, it is ideal for you to hold up your holiday except for when you have enough money saved up.

                  The other important thing is for you to ensure that you do not take any more money than you already need.

                  Top 7 Peer-to-Peer Lending Platforms in Asia

                  Make Inquiries

                  Different certified moneylenders in Singapore give different interest rate charges. So it is ideal that you do a bit of research to make sure you get the best deal. Before applying for a loan, make sure you look around for the right moneylender singapore who can meet your financial needs.

                  Read through all the interest and the penalty clauses and also take note of any other additional fees. This way you will be familiar with terms and conditions of the loan agreement before signing it. Be certain that you can make regular instalments on the set upon date to avoid getting defaulting charges. Ensure you check the legality of the lender’s license to verify they are registered with the Registrar of Lenders.

                  Ensure you know the set terms of the loan and when you are unsure ask for clarification on the conditions and details of your loan request. Ask a lawyer to assist with explanations the fees of defaulting you might face. When the conditions are not suitable, you can choose to work with a different approved lender who will offer you the better loan conditions to meet your financial obligations.

                  Choose a moneylender who will give you the lowest rates possible, and a favourable repayment time. The repayment amount should also be affordable for you and not cause you more financial strain.


                  Payday loans are an important source of funds and often come in handy when you urgently need quick cash. For you to make sure that your payday loan goes as smoothly, be sure to shop around for a reliable moneylender who will help you meet your financial wishes. Also always take the loan amount that you need.

                  And above, all make sure that you don’t to extend your payday loan, as in so doing your loan will become more costly than it actually is.


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                    One Big Reason Why People Get Into Debt – Overspending

                    There are so many things to pay for, and so little money. You have your utility bills to settle. You have medical bills to take care of. You recently lost your job, and you are striving to make ends meet. You recently lost some money betting on a soccer match. You may think that all these things are what is taking a huge chunk out of your savings. You may feel that keeping up with these things is what is getting you into more debt. Maybe that is the case. However, if you look closely at your expenses, you will realize something else. The real culprit here is that you are overspending.

                    In this day and age, overspending is not a strange thing. There are so many ads out there crowding your mind with new things to buy. It seems every week there is a new game, app, or gadget in stores. You may not need them, but you just have to have them. You go grocery shopping and you come out with clothes and self-help books. Zero groceries.

                    Many Singaporeans have a problem with overspending. Overspending gets you into a lot of debt. To get out of it, you look for ways to get more money. You visit a moneylender for a payday loan or personal loan, hoping to clear your debt. You go and spend it all on things you shouldn’t have, and the cycle continues.

                    What are those things that are making you overspend, and how can you deal with them?

                    Reasons Why People Overspend

                    1. Where You Are Can Make You Overspend

                    There is a form of psychology to the way items are arranged in a mall. For instance, most stores keep the dairy and fresh produce in the back of the store. To get to them, you first have to walk through aisles of other items for sale. This is not a coincidence; it is done on purpose.

                    The goal is to make you purchase more than you initially planned to. And what’s more, a lot of people fall for it. You end up buying more, in the long run to the benefit of the mall.

                    Another mental trick malls or supermarkets use is music. Music works on a subconscious level, influencing your choices. Music influences shopping habits a lot. A good example is the malls during festive periods. Christmas, Thanksgiving, New Year, Halloween, the lot of them. The music played in stores at those periods nudge you to purchase things appropriate for the season, planned or not.

                    If you truly want to kick the habit of overspending, you have to go shopping prepared. Make a list of what you need and take it with you. Buy only what is on your list, and nothing else. Your pockets will be better for it.

                    1. The People with You Can Make You Overspend

                    Your peers, friends, colleagues, even family members, are another reason for your overspending. There is this urge that humans have that makes them want to fit in. You want to be like your friends or your successful sister who just came into town. This kind of thinking leads to overspending every time. You could have friends that have deeper pockets than you do. When you hang out, you feel you have something to prove. So you pay for all the food and drinks. Sometimes they even take you to a hangout that is way above your pay grade. But you cover the bill all the same. Trying to live above your means will put you in debt faster than you can think.

                    Be true to yourself, and to the people around you. If your friends want the expensive places, tell them you can’t afford that place. If they insist, make sure that they are paying for you. Taking a payday loan just to be like your friends is not a wise move. Stick with what you can afford.

                    1. Credit Cards

                    Singaporeans tend to abuse their credit cards. You may think that there is unlimited purchasing power on those plastic cards. You couldn’t be more wrong. Credit cards are great in a pinch, but they can make you overspending. Constantly maxing out your credit cards is not a good way to live. That could earn you a bad credit report. Banks will refuse to give you loans with a bad report. A moneylender would be your best bet, but taking a personal loan to settle your credit card debts is not advisable.

                    If you are the type to max out your credit cards, don’t use them. Take cash with you to pay for stuff. You will be less tempted to overspend since you actually know how much you have on you.

                    Ways to Stop Overspending And Avoid Debt

                    If you can stop overspending, falling into debt will be a foreign thing to you. Some ways have been mentioned earlier, such as using cash and making lists of what to purchase.

                    Other ways you can stop overspending and avoid debt include:

                    • Budgeting
                      Always budgeting your income will prevent you from compulsive spending and debt. When you get your income, there are three things you need to budget. These are your savings, your expenses, and your emergency fund. Once these three things are all accounted for, you will be conscious of your finances.
                    • Paying For Things On Time
                      If you have payments to make, do so once you have received your salary. Always make sure that you pay the minimum balance on all payments. The path to being debt-free is paying them off as soon as possible. The more you are procrastinating your payment, the likely you will let your debt roll into next month.

                    Sometimes, taking a personal loan or payday loan is inevitable. In that case, make sure you discipline yourself to repay it in full and in the shortest time possible. Meeting a licensed moneylender to get a loan will get you low-interest rates, so paying back shouldn’t be a problem. Just make sure that you don’t spend most of it on unplanned things.

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