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Short-Term Financial Crisis: How Will Payday Loans Will Help You Through?

Money lending institutions make small personal loans accessible to individuals who have a limited access to banks. Singaporean money lending institutions are licensed by the Registrar of lenders and are bound by rules and regulations that guarantee they follow all money lending and financial institutions laws.

Financial emergencies can happen unexpectedly and especially when you are least prepared. That is why trying to handle them can be quite challenging, particularly for those Singaporeans living paycheck to paycheck. The dilemma becomes severe when you don’t have sufficient money in the emergency fund.

Payday loans are intended as cash advances on your next paycheck. For you to qualify you have to be over 18 years old. You also need to hold a steady job and a bank account. Payday loans from moneylenders do not depend on your credit history, credit report or the absence of it. But instead, a fee ranging from $10-$30 is charged for every $100 you borrow. This makes the payday loan more costly than normal loans.

The positive side is that they offer you quick cash for those emergency times. Payday loans are mostly approved within 24 hours after you have submitted your loan application.

What You Need To Do

When you have family or a friend to whom you can count on, you will need to talk with them for help. Although there are situations when there is no one for you to contact for assistance. And to make things worse, getting a loan from a bank loan in this situation is barely feasible.

This is considering most banks take longer to process your loan application. And at the same time, they are not exactly bothered by your situation. On the other side, taking a loan using your credit card may be an option. But it is costly compared to banks, and again, it takes a long time to get the loan application processed.

Therefore, when you are in need of a short-term loan which you can repay using your next salary, then a good option for you to seriously think of is the payday loan. Every one of the legal moneylenders in Singapore offers this loan type to the suitable candidates.

One of the main benefits of this loan type compared to other loans is the speed with which the application is approved. You are able to get your payday loan in 1-2 days, and at times even within the same day.

Who Qualifies?

As its name suggests, the payday loan is issued based on your salary. Nearly every person that is employed can access this loan type from licensed moneylenders but the highest amount of money you can take out in loan depends on your monthly income. You are able to access a payday loan even when your credit record is not that good. Provided you are able to show a proof of employment. Thus this is an additional advantage of the money lender payday loan. Individuals who have a bad credit are able to access it. The payday loans are very easy to obtain because they are based on the status of employment and also your pay level.

Things To Bear In Mind

There are some important things that you need to take into account when you are applying for a payday loan. These include:

  • Payday loans are meant for financial emergencies and are not best for long-term financial solutions. In addition, when you are getting a payday loan for each month, you need to seriously evaluate your spending. You shouldn’t make it into a habit; this loan type is for emergencies.
  • You need to pay off your loan using the next salary. Similar to other loans, the payday loan also comes with interests. And a quite high rate at that. Hence, you need to only take the amount that you can pay off using your next salary. Don’t be tempted to extend your loan period by paying in smaller amounts or even the bare minimum. In so doing, you are more likely to end up paying more money than your original amount.
  • Be sure you do some research, this way you will get the best deals possible. Each moneylender may offer you a different rate for the same loan amount. Hence, by shopping around a little, can help you get a much favourable deal. Borrowers are cautioned to first confirm the rates being offered by the certified moneylender before settling for a payday loan. This will help when you are comparing the terms and rates to help you pick the terms offered, that best meet your financial situation. Approach a few moneylenders and, compare their interest rates they offer to help you pick the one with the most favourable terms to fit your budget.
  • Ensure you understand your needs, terms, and conditions of the loan contract before signing it. Bear in mind that you are duty-bound by law to honour the terms of the contract once you sign.
  • Payday loans are processed much faster time owing to the effortless verification procedure of income and status of employment. Lastly, at all times take loans from legal moneylenders.
  • Payday loans are the easiest to obtain as with a valid work permit, confirmed employment status and a bank account, a foreigner can have their loan approved fast. This loan is usually repaid once you get your monthly wages.

Conclusion

Payday loans are intended as cash advances on your next paycheck. Financial emergencies can happen unexpectedly and especially when you are least prepared. But first, when you have family or a friend to whom you can count on, you may need to talk with them for help. When that fails, you can consider taking a payday loan, which is issued based on your salary.

Nearly every employed person can access this loan type from licensed moneylenders. But the highest amount of money you can take out in loan depends on your monthly income. Of importance is to confirm the interest rates being offered and also be sure to pay off the loan using your next salary.

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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.

    Conclusion

    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.

      Conclusion

      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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          How To Effectively Keep Your Credit Rating Healthy

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

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

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

          What Happens If Your Credit Score is Bad

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

          What Can Lower Your Credit Score?

          Having Several Credit Accounts

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

          No Credit History

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

          Several Personal Loans Within Short Periods

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

          Many Loan Applications All At Once

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

          Late Repayments

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

          Bankruptcy

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

          Defaulting credit

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

          How To Have Healthy Credit Ratings

          Do Not Make Successive Loan Enquiries

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

          Diligently Repay Your Loans

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

          Take Small Loans And Ensure You Repay Them

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

          Don’t Fail To Repay Your Loans despite the Amount

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

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            5 Things To Watch Out When Taking Up A Personal Loan

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

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

            Fees and Charges

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

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

            Interest Rates

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

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

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

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

            Your Credit Score

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

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

            Borrow Depending On The Loan Purpose

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

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

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

            Minimum Loan Tenure

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

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

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

            Principal Loan amount: $3,000

            Processing Fees: 2% = $60

            Yearly Flat Rate: 15% a year = $450

            Monthly installment = $288

            Total Loan Cost: $$3,510

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

            Principal Loan Amount: $3,000

            Annual Flat Rate: 25% a year = $188

            Late repayment charges: $60 a month = $120

            Monthly payments: $850

            Total loan cost: $3,308

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

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              What You Need To Know About Qualifying For A Personal Loan

              Taking loans in Singapore isn’t an unusual thing. However, many people still don’t know how these loans work. If you are one of them, you have come to the right place. There are different types of loans, depending on your need and ability to repay them. If you need money to buy a house, there is a loan for that. If you need money for medical bills, there is a loan for that too. If you need to borrow some cash to repay with your next salary, you will still find a loan for that.

              Another thing people don’t know is that there are different places to get loans. Yes, you don’t have to keep asking your parents or that distant cousin for a loan. And no, not only banks give loans. You can go to a licensed moneylender in Singapore to get loans. A licensed moneylender is vetted by the government and can give you cash instantly. The interest rates are also low, and you don’t really need collateral.

              A personal loan is one that you can take for any number of reasons. A personal loan is good for tuition medical bills, paying off another debt, and even a vacation. Now, you cannot just waltz into a bank or money lending establishment and apply for a personal loan. You need to fit certain criteria to qualify for a personal loan.

              Qualifications for a Personal Loan

              1. Annual Income

              You need to show proof that you have an income. No bank will lend money to someone without a means to repay the loan. Even being self-employed is difficult for banks to accept. If you are jobless, your chances are very slim. Banks typically want you to have an annual income of at least S$20,000. You will also bring bank statements and pay slips to prove this. This is for salaried employees.

              Self-employed persons may be required to have an income of at least S$40,000 to qualify for a loan. The same thing goes for foreigners. A money lender may require lower minimums than that. For a moneylender, the amount you can borrow depends on what you earn. So, an income of S$20,000 could get you a loan amount of S$3000. Also, they are softer on self-employed persons.

              1. Age

              You have to be at least 18 years old to get a personal loan. Some institutions may tell you 21, but usually, it is 18. Under-aged persons can forget about getting a loan to pay for something their parents have refused to. You will be required to show some ID anyway. There is also a maximum age limit for taking loans. If you are 65 and above, you can’t go for a loan.

              1. Period of Employment

              Just because you have a job doesn’t mean that you are qualified for a loan. You need to have held that employment position for at least three months. You will also show proof of how long you have been employed. This proof can be in the form of payslips (for the past three months) and/or your employment letter. Banks are very strict about this.

              While a moneylender is less stringent, you still need to have that employment track record. You cannot come into the country after a year of absence and now work to get a loan.

              1. Debt

              The whole point of asking for your annual income stats is to know if you can repay your loan. Your income also determines how much you can borrow. Your track record for borrowing and repaying comes into focus at this point.

              Some banks won’t give you a loan if you are currently in debt. Other banks and money lenders can give you a loan if you are already in debt, but with certain conditions. Many financial institutions are leery of this, though. If you are already in debt and coming for a loan, how will you repay?

              1. Credit Score/Report

              This is the big one. When you go for a loan, the bank contacts the Credit Bureau of Singapore for your credit report. What they see there will determine your future loan business with that bank.

              A credit report states how often you have fallen into debt. It also states how well you how fast you clear those debts. Your credit score shows how much the banks can trust you to repay a loan. As such, if your credit report shows any of the following, just know that you are not getting that loan.

              1. You consistently fail in timely payment of credit card bills
              2. You consistently default on repaying your home loans
              3. You consistently max out your credit cards
              4. You rarely meet the minimum balance when repaying your loan6. Interest Rates and Monthly Payments

              Banks tend to charge high interest rates on personal loans. Personal loans are quite expensive, especially because you can use them for anything. Personal loan tenure can be as long as 7 years, depending on the amount borrowed. You could pay interest as high as 8%, or even more. You will be required to repay that loan every month, so you will have to work that out.

              Moneylenders have a fixed interest rate. This is required by law, so you can get a personal loan from a moneylender at 4% per month.

              Things to Take Note Of

              • You may be wondering if you can borrow loans simultaneously from several banks. That is not possible. Banks are very rigorous in their loan process. They carry out background checks. The process of qualifying for a bank loan is almost like trying out for the Secret Service. Do not think of going for loans from different banks at the same time. You might even attract a penalty for that.
              • When looking for a moneylender, always go to a licensed one. Loan sharks abound in Singapore. To avoid them, finding a licensed money lender is easy. Go to the Registry and look them up. There are over 150 registered money lenders to choose from.

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                How To Get Low Interest On Your Personal Loan

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

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

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

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

                Advantages of Mortgage Loan Calculator

                Personal Loans Demystified

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

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

                Factors Of Low-Interest Loan And Eligibility

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

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

                When the Loan Offer Is Too Good

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

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

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

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

                Compare Different Loans Before You Borrow

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

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

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

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

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

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

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                  Credit Card Suspended? Here’s Where To Find Money

                  The Singaporean Monetary Authority (MAS) brought changes to the regulation of unsecured loans. The changes species the amount of money an individual can now borrow. This new uncollateralized loan limit put in place by the Singaporean Monetary Authority does not favour many individuals.

                  No one likes living on credit but at times life situations may require you to come up with some urgent cash. Therefore, you end up needing financial assistance for several months. Your credit line or credit card may have been frozen owing to the newly set limit on unsecured loans. Here is where you can access urgent cash in Singapore.

                  The New Limit Of Unsecured Debt 

                  As of June 1st, 2017, the Singaporean Monetary Authority has put in place a new limit. This limit defines how much of the unpaid debt you can have as an unsecured loan facility. This set limit applies to every one of the financial institutions (FIs) found in Singapore. The new limit will be imposed on you should your interest earning unsecured loan be more than 18 times your earning for each month. This is when the unsecured loan remains so for 3 following months.

                  When this occurs, you stand to lose any right to use credit facilities offered by financial institutions. Some institutions may also disallow you from acquiring new credit cards and credit card unsecured facilities. And also getting increases on the existing charge cards issued by them.

                  What An Interest-bearing Unsecured Debt Is

                  Interest-bearing unsecured credit is the amount of debt that attracts interest on the balance due. This amount is also not backed using any type of collateral for instance property.

                  • What It Includes
                    The unsecured interest-bearing debt is one charged on credit lines, credit cards, overdrafts and personal loan issued by the various financial institutions found in Singapore.
                  • What It Excludes
                    The interest earning debt excludes credit on the unsecured loans extended to you on a needs-basis and purpose. Such unsecured loans include medical, education and business loans.
                  • The Financial Institutions (FIs) Involved
                    The financial institutions involved include credit card issuer and banks found in Singapore.

                  What Will Happen When You Exceed The New Set Limit

                  When you go beyond the new set debt limit, you will no longer be able to perform the following transactions:

                  • You will not be able to apply for a new credit card.
                  • You will not have access to any new unsecured loan facility such as personal loan and credit line.
                  • You will not be able to apply for limit increases on your existing credit card.
                  • You will be able to apply for an increase in the already existing unsecured loan facility.
                  • You will be disallowed from making charges onto the on-hand credit card.
                  • You will also not be able to use your on-hand credit card to pay for recurring charges such as your utility bill.
                  • It will also not be possible for you to make cash withdrawals and issue cheques using your unsecured line of credit.

                  An Example To Help You Understand

                  For example, assuming your monthly income is S$3,000. We will also presuppose that this is the same figure the financial institutions have on your income data. Therefore 18x your earnings each month comes to $54,000. (That is to say, each month’s earning S$3,000 x 18). Assuming you hold three credit cards with HSBC, DBS, and Citibank. For the credit cards, you have an outstanding balance due of S$10,000 each. In addition, you hold two unsecured lines of credit with OCBD and UOB. And the credit lines you have a balance due of S$15,000 on each of the cards.

                  The interest-bearing of unpaid loan debt for all the 5 banks comes to a total of S$60,000. This amount you owe already goes beyond the set limit of 18x your monthly earnings. Given that the S$60k is not paid for the months of January, February and in March. When April comes to an end, all the five banks will suspend both your credit card and line of credit. This for you will mean you will not be able to do the different transactions. These transactions are outlined under “What Will Happen If You Exceed the New Set Limit”.

                  This will remain so until you are able to fulfil the below-listed conditions:

                  • You can lower the interest-bearing debt that carries no collateral to an amount below 18 times your monthly earnings.
                  • You present your most up to date wages document to the financial institution for a review of your credit.
                  • The bank uplifts the suspension on your credit cards and line of credit based on the results they have obtained from the credit review.

                  How My Total Interest-bearing Is Determined On The Unsecured Debt

                  The Singaporean credit bureaus often gather and maintain all credit information. This information regarding a person’s credit is often presented to the bureau by its members. Members of credit bureaus include credit card issuers, banks, and other financial money lending companies in Singapore. The bureaus then calculate the sum of all your outstanding balance due. This is got from the reports issued by their members. The report often lists all the debt you owe across both the unsecured and secured credit facilities.

                  The outstanding uncollateralized credit is further separated further into 2 parts. These 2 parts are non-interest bearing and interest-bearing debt. From this, the financial institutions only consider the interest-bearing unsecured credit. This will then help them establish your borrowing limit. You will then be able to access your credit report. And you can get it from DP Credit Bureau and the Singaporean Credit Bureau (CBS).

                  Where You Can Get Money If Your Credit Card Is Suspended

                  The Singaporean Monetary Authority set limits will end up suspending some individuals credit limits. Before you find yourself in such a predicament, you should talk to a licensed moneylender. A trusted and licensed moneylender will help you with a suitable loan before your debt escalates and snowball into a huge debt. The moneylenders will be able to offer you unsecured loan facility. The unsecured loan facility by a licensed moneylender attracts low-interest rates.

                  Don’t let yourself be in debt when there are means and ways to assist you to avoid getting yourself in trouble with money issues.

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                    Reasons Why Singaporeans Take Out Personal Loans

                    Most Singaporeans have been brought up with the belief that loans can be bad for a person’s finances. Nonetheless, it is good to bear in mind that a personal loan can be useful when used wisely. By choosing the most suitable personal loan, you can strengthen your finances. This can be the result when you use the loan in a smart manner.

                    You could also even enhance your personal relationships. If you have ever found yourself wondering what you could use a personal loan for; below is a list of 10 practical reasons why you may want to apply for a personal loan.

                    Avoid Making Insurance Claims

                    If you have an insurance policy, then you most likely have read through the fine print before you put your signature. In Singapore, there are insurance policies that offer bonuses to individuals who don’t make claims within a given period. Some insurance policies, on the other hand, limit the number of claims for a given period. When the claim is a minor one, some Singaporeans opt to apply for a personal loan. This way they avoid making an insurance claim.

                    You can never tell whether you might have to make a claim for a more serious issue in future. Getting a loan may also assure that they receive a bonus for not making an insurance claim.

                    Keep Your Savings While Making A Huge Purchase

                    Assuming you have S15, 000 saved up for a splendid family holiday in Bali. This money may not all be used for your family getaway. This is considering that an emergency could happen during the vacation. If you have by now used most of the savings, then taking a loan may just be what you need to do. You can then pay back the loan in instalments to have the surety that you have your savings. Savings give you peace of mind and in spending it all may make your financial situation little shaky.

                    Purchase Of Wedding Rings

                    As an alternative to using a credit card for the purchase of wedding rings, you can opt to use a loan instead. This is because credit cards will charge you very high interests. You could choose instalments as a way to repay your credit card. But when you fail to pay the monthly amount, it will definitely affect your general financial situation. You can apply for a low-interest personal loan. Moneylender’s personal loans have an interest rate limit of 4%.

                    Avoid Using Credit Cash Advance

                    Most credit cards offer a cash advance loan facility. This allows you to withdraw a given amount charged to your card’s credit limit. This means instant cash for you but it comes at a high price. The money you withdraw is charged an interest rate and a processing fee. The amount also attracts an interest which is charged each day until the credit amount is fully repaid.

                    You Can Help Your Family And Friends

                    Matters concerning money among close friends and relatives can prove to be a tricky issue to deal with. During times of emergencies like a medical emergency, your financial help may be needed most. This is especially true when you have a close-knit family. However, relatives and friends tend to offer many stories when they do not repay the money they borrowed. When this happens, you are more likely to be low on your savings. In addition, the relationships will also be broken. For this reason, you need not gamble with your savings. For you never know when you may have to deal with your emergency.

                    Getting a loan may be an easy option and you can easily repay the instalments. Then you can lend your friend or relative the funds. In this case, you get to save your savings. Also, let your friend or family know that you got a loan for them. This tends to give them the push to repay back the amount they borrowed from you.

                    Debt Consolidation

                    When you have multiple credit card credits, you can take a personal loan to take care of the debt. This also ensures that you do not keep tabs on several due dates. Instead, you work with a single due date. Using a personal loan you are able to fully pay the credit card debts. And you do not need to get an additional card for balance transfer.

                    Home Renovation

                    Banks often times are the ones that offer home renovation loans. Even then, when you have a minor renovation you want to do, you can settle for a personal loan. And again, if by now you have used the renovation loan, then a personal loan can help you finish the work. This may be better instead of leaving parts of your house half-finished.

                    Late Payments

                    There are workers who receive late payments in spite of the firm regulations set by the Ministry of Manpower. This means a personal loan can help close the financial gap. This is better than starving while you wait for your salary to be deposited late in your account.

                    Time-Sensitive Purchases

                    Assuming you have been saving for an item you have wanted to get. And then the item suddenly goes on sale yet your savings are not yet enough. You can choose to take a personal loan to help you acquire it.

                    Avoid Borrowing From Family And Friends

                    Many Singaporeans value their pride. They are more willing to take short-term loans than to ask for help from their friends and family. A personal loan can be used to lend to friends and relative, for paying bills and for daily use before the next payday. This loan type is flexible and multi-purpose.

                    You, however, need to be very smart when deciding on the most suitable personal loan. Moneylenders provide fast cash loan. The vast experience gained over the years ensures some lenders are better able to understand your needs. The needs of people have become rather dynamic therefore personal loans need to be easily accessible. Many moneylenders in Singapore strictly operate independently and client’s information is kept completely confidential and is not distributed.

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