Best Personal Finance Tracking Apps In 2017 That Help You With Financial Problems

Many people are not able to stay for an entire day without regularly checking their smartphones. Considering checking text messages, checking emails and chats has now become part of our daily routine. Smartphones are very smart that they enable us do shopping and pay the bills and yet be on the go. Smartphones can enable us to maintain a track of our finances as well.

By use of downloadable apps, you are now able to create a budget that you can stick to and even making investments through your phone. There are numerous finance tracking apps available in the market that it is rather frustrating to find a suitable one for your needs.

Why The Need For A Finance App?

There are a large variety of financial challenges that people face in their everyday life. Financial challenges are hard to tackle since they involve the much-dreaded balancing of financial accounts. When your financial problems are not handled immediately, they could eventually lead to a major financial setback. You will to first identify the root cause of the problem you are facing and then work at finding a suitable solution to overcome it.

You will need to recognize the things you often spend your paycheck money on and ways in which you can holistically make a move towards better money management practices. You will need to break off the habit of living from paycheck to paycheck or borrowing from legit sources like moneylenders. You will also need to establish ways of ensuring you have extra savings using the least effort possible.

Some Of The Best Personal Finance Apps In 2017

Wally: Best For Tracking Your Expenses

Wally is a free personal finance app, which helps you recognize all the areas where your money goes, and ways in which you spend and when you do the spending. This app also allows you to save photos of your receipts for purposes of records.

Your financial lives can sometimes be complex and not every one of us loves accounting. In using Wally, you will be able to easily to notice what happens to the money you bring in, what was saved, what you earn and what you need to adjust to your budget.

The Wally App is very easy to use and it makes tracking your finances very simple as well as convenient for you. The time you spend some money, you will only need to take out your phone. The graphs generated will give you insight into areas in which you spend money on. In this manner, you can well understand your spending behaviours and ways you can save up more.

Mint: To Help Manage Your Money

The Mint application is the creation of the Intuit Inc. the company responsible for creating QuickBooks –accounting software used for smaller to medium-sized businesses and the Turbo Tax- American tax preparation software.

Like the real mint gives you a fresh breath, the Mint App has a refreshing effect on your finances. This app is web-based and is a free financial tool used to tap into your credit cards, bank account, investments as well as other financial accounts you may have. With this App you do not need to log into different sites, you only require to open a Mint account.

The Mint App gives you the visual of the areas you often spend your money in, how much money you have in the bank accounts, which of your accounts need additional funding and whether you will end up messing with your own budget. The Mint App makes it possible for you to handle your finances in ways that are beyond simple budgeting process.

You Need A Budget (YNAB): To Help You Get Out Of Debt

If you are tired of living in the endless cycle of paycheck to paycheck expenditure, then You Need A Budget (YNAB) will help you keep track of your finances. It will help you define your spending patterns, paying your debts, coming up with a workable budget and having some extra cash should you experience an unexpected financial bump.

You Need A Budget pushes you to make a workable budget which differentiates it from other apps which require you to make a budget with money you may not have. And should you go off track, YNAB App will help you make necessary adjustments to your budget so that you don’t wreck the entire budget plan.

The main purpose of this App is to have extra money for you to spend from the previous month’s earnings. This for you means you have broken free of the cyclic pattern of living paycheck to paycheck and you have some money to pay off debts and remain with some extra cash for your use.

Despite the fact that users have to pay $50 annually, the support and services it offers are well worth it and it even comes with a money-back guarantee.

Acorns: To Help You Make Extra Savings

With the Acorns App, micro-investing becomes a natural way for you to earn more cash on the side making your spare change work for you. Each time you purchase using the card connected to the Acorns App, the app converts it to the next highest dollar. The distinction between the amount changed and the estimated cash amount is automatically invested in a portfolio of a low-cost exchange-traded-funds (ETFs) at the end of each year.

Acorns app sends out a questionnaire to get to know your financial goals and situations and thereof the app makes recommendations which are a mix of ETFs that you can invest in. you are able to manually set up a one-time and even recurring investments. The app charges account having less than $5,000 a monthly fee of $1 while those accounts with more than $5,000 are charged 0.25% each month.

The different apps can turn your smartphone into a financial companion driving you towards better money management practices. You can use apps for different financial reasons but they are effective depending on how you change your spending patterns.

For you to reach your financial goals it will take time and discipline on your part, however, you will from time to time experience some financial gaps. Even then do not panic since you can access a personal loan from moneylenders in Singapore.

Personal Loan Myths: Why You Shouldn’t Believe Them

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

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

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

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

Myth 1- The Application Process Is Complex

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

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

Myth 2 – Singaporean Personal Loans Are For Salaried People Only

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

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

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

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

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

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

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

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

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

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

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

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

Myth 6 – A Borrower Needs Good Credit Scores To Qualify

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

Myth #7 – Focus On Interest Rates Offered

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

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

4 Mistakes That Lower Your Credit Scores

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

Low Credit Score In Singapore

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

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

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

  1. Missed Or Late Loan Repayments

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

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

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

  1. Exhausting Your Credit Card Limit

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

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

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

  1. Focusing On A Particular Payment Alone

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

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

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

  1. Family Cards Or Being A Loan Guarantor

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

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

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

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

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

3 Ways To Get Emergency Cash In Singapore

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

The Singaporean Instant Cash loan

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

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

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

Limitations:

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

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

 

Credit Card Cash Advance

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

Limitations

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

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

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

 

Line Of Credit Or Credit Line

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

How it works

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

Limitations

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

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

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

Conclusion

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

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

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

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

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

Applying For A Business Loan In Singapore

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

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

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

Structuring Financing Options For Your Company

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

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

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

Investing In Your Business

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

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

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

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

Where You Can Get A Business Loan

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

The Comparison Between The Threats Involved

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

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

How To Find Reliable Money Lenders In Singapore

Finding reliable money lenders in Singapore has been causing for worry because most of them turn out to be loan sharks and fraudsters. Unsuspecting customers will be charged high fees and interest rates on late loan repayments, or they will point out something minute in the contract and capitalize on it, to the detriment of the unsuspecting customer.

Due to illegal money lender activity, the Ministry of Law took charge and cracked down on money lenders, enforcing rules and regulations that monitored their activities and greatly reduced fraud. The Ministry created a set of guidelines in 2015 that required money lenders to be licensed and verified and capped the amount of interest customers had to pay in loans. Still, customers may not be aware of these guidelines, so it will do you good to visit the website of the Ministry of Law and check out the list of licensed money lenders and the guidelines that protect you from fraud.

Do Your Homework And Research For A Trusted Money Lender

Finding a trusted money lender in Singapore may be difficult, but it isn’t impossible. When researching for a trusted money lender that you can do business with, first of all, you need to search for one by looking at directories of money lenders and financial companies that have obtained their licenses.

Any money lender without a license, or listed as having a license, is most likely a fraud. Finding out if they have licenses by looking at the directory is the first thing to do. Searching online could also get you names of trusted money lenders, though after your search you should look them up in the directory of licensed money lenders. You can search financial groups on the internet for names of money lenders, or go to financial management groups that have a list of money lenders based on their previous track record.

When selecting a money lender, be conscious to look out for the following things:

  • They should be strictly licensed money lenders
  • Do they provide insurance facility
  • What is their previous record of a financial institution, etc.

There is a guideline for customers who want to borrow money from money lenders on the website of the Ministry of Law. Check those guidelines when looking for a money lender, and compare those guidelines to what the money lenders you have found are offering. If the interest rates are different, then they are frauds.

Look For A Licensed Moneylender In The Government Directory (The Moneylenders Act, Chapter 188)

There is a list of licensed money lenders in Singapore, certified by the Ministry of Law. Any money lender that is not listed in the directory is not a certified one and, therefore, is not legitimate. Alternatively, our website provides you with the most reliable money lenders in the market so you can rest your mind.

Steps To Verify A Reliable Money Lender

There are steps that you can follow to verify a reliable money lender. Following these steps ensures that you stay out of harm’s way by avoiding anyone out to get you into a financial crisis.

  • Verify Their License

As said earlier, there are 170 certified money lenders registered with the Ministry of Law. This list can be found on the Ministry’s website, and the list is approved by the Ministry. Getting a loan from a money lender excluded from this list is completely at your own risk.

  • Process Of Loan Application

A legitimate money lender should be transparent about their activities and their process. The conditions of the loan you are about to take need to be expressly explained to you before you sign off on it: this is mandated by law. The conditions need to be explained to you in a language you understand, and you are required to have a copy of the loan agreement with you, including the settlement agreement, interest rates, and other loan fees clearly stated in the agreement.

  • Loan Limits

Money lenders offer two types of loans: secured, which require collateral; and unsecured, which use your credit records. Unsecured loans have limits, such as:

  • With an annual income of less than S$20,000, you can borrow up to S$3000
  • With an annual income of less than S$30,000, but more than S$20,000, you can borrow up to two months’ salary
  • For an annual income that is more than S$30,000 but less than S$120,000, you can borrow up to four months’ salary
  • You can borrow any amount if your income is more than S$120,000

    Rates Of Interest

Legitimate money lenders are required by law to charge a maximum of 4% interest per month. The money lender is allowed to charge an interest fee on a defaulted payment, but not on money that has already been repaid.

  • Statement Of Accounts

Once you have acquired your loan, you are to make sure that the moneylender gives you the correct amount agreed upon. Remember that you signed a contract with the moneylender, so the money stated in the contract is what you should be given. Whenever you make a payment on your loan repayments, make sure that the money lender gives you a receipt that shows the date, the amount you have paid, your name, and a signature. Also, you are to get a statement of account in the middle of every year and ensure to keep all these documents with you in a safe place in case you need to refer to them or present them in the future.

Conclusion

While money lending may be a legal activity in Singapore, it is also a highly abused activity, with money lenders defrauding unsuspecting customers and leaving them high and dry. Before you get a loan from a moneylender, make sure you check that they are a trusted source of loans by looking them up in the government directory of certified moneylenders.

Their process of setting up the agreement and informing you about the loan conditions need to be transparent, and you need to be given a copy of the agreement to hold. All moneylenders are required to charge a flat interest rate of 4% per month, and the interest charged for late payments is charged to the late payments. Make sure you get a receipt for every payment you make and keep your records straight in case you need to present them.

How A Bridging Loan Can Save Your Frustration When You Sell Your House

Bridging loans are loans that serve a purpose when you are in a particularly tight spot, and you don’t have money at hand, and the loan you have applied for hasn’t been approved yet. A bridging loan is a short term loan that ‘bridges’ the gap between the sale of a property, or a debt that you are to repay, or the gap between a property transaction and the approval of a loan you have applied for.

Since this is not a typical type of loan, a bridging loan is very expensive, because it is a short-term option that you take when you are in very dire straits.

Who Needs A Bridging Loan?

Bridging loans are necessary for you if you are in a situation where you have to pay out huge sums of money while waiting for certain funds, such as a loan, to be available. Bridging loans are available for people in dire need of money to pay for things like mortgage, to complete a property sale or something that requires a lot of money. People who plan to bid on items at auctions also fall into this category, as well as landlords and novices at property development.

What Can A Bridging Loan Help With?

Bridging loans can help you out with certain things that may be frustrating you, such as:

  • Bridging loans can help you when you want to complete the payment on a new house but haven’t finished settling your financial commitments on the house you are currently in. In this instance, a bridging loan will provide you with the funds you need to clear the payments on the existing house and pay for your new house; or you can pay for your new house even as the payments for the existing house haven’t been cleared.
  • Bridging loans can come in handy in the case where you have just finished renovating your house and you want to sell it immediately.
  • A bridging loan can help when you want to buy a house at a house auction.

The essence of a bridging loan is that it is a short-term financial solution to your immediate financial problem, but this loan comes with a very high-interest rate.

When Are Bridging Loans Most Useful?

Bridging loans are most useful when used for investing in property when used for development purposes, when to buy property, or when to give property for rent. However, some people take out bridging loans for the simple reason that the personal loan they have applied for is taking too long to be approved. So, it could be said that bridging loans are useful as shortcut ways to get a loan faster.

Bridging loans, as said earlier, are short-term loans, but people seem to go for them more and more, mostly without knowing the full implications of taking those loans.

As such, bridging lenders are increasing because banks and building societies are hesitant to give bridging loans to customers during a financial crisis: the inadequacy of funds to pay for your new house.

Bridging loans attract high-interest rates, a hefty administration fee, and the likelihood being swindled depending on where you get the loan from.

Before getting a bridging loan, carefully assess your needs and what you want to get the loan for, and how much you earn and can afford to pay back monthly. Bridging loan payments can be as high as 18% per annum; so looking at a second or third option is advisable before settling for a bridging loan.

Where Can You Apply For A Bridging Loan?

Getting places to obtain a bridging loan is not difficult. Banks, moneylenders, and other financial institutions offer bridging loans, as well as individuals. However, it is important that you get a loan from a certified, licensed, regulated, and legal financial institution. Banks offering this loan in Singapore include Standard Chartered Bank Singapore, DBS Bank, and OCBC amongst others.

Moneylenders also offer bridging loans to you if you need them, and you can look up legal, licensed moneylenders to find out where you can go to borrow money. Moneylenders have a bad reputation for being dupes and scammers, but with the regulatory board in place for moneylenders, you can be sure to find out which moneylenders are scammers and which are legitimate.

There are currently 170 moneylenders registered with the Ministry Of Law, and you can check their website to see the list of registered moneylenders in Singapore. To verify their licenses, you can also look them up on the website of the Ministry of Law.

Moneylenders offer two types of loans: secured loans and unsecured loans. A secured loan is one that you need collateral to be able to obtain, and the amount is you can borrow with a secured loan is virtually limitless. An unsecured loan can be obtained with a look at your credit report and your ability to repay your loans. The amount you can borrow depends on your annual income.

Obtaining bridging loans from moneylenders is very possible, as long as you verify the moneylenders.

Conclusion

Obtaining bridging loans in Singapore is an increasingly common occurrence because living in Singapore without getting a loan means you are among the few earning up to S$120,000 annually. Bridging loans come in handy when you need to sell your house, buy a new house, develop a property, or let property, i.e. rent.

While bridging loans may be the perfect solution to obtaining huge amounts of funds in a pinch, the interest rates are high, and you may not be eligible to get other loans once the lenders see that you are repaying a bridging loan. Bridging loans are short-term loans, which means you have to pay them back within a short period of time.

Before you take out a bridging loan, make sure you assess your income and your budget before taking that step. Also, it would be wise to consider other options before settling on a bridging loan.

 

 

Welcome to Singapore: How An Expat Start His New Life Without Financial Worry

Like in other highly developed cities of the world, life in Singapore can be expensive for a foreigner. Life in a city that bleeds you dry financially, can be difficult especially for an expat or foreigner with no kin currently in Singapore. This is even worse for foreign workers who are unable to come up with money to meet expected or emergencies. Singapore is the most well-liked work destination in the world. The growing economy, high living standards, political stability and the perfect investment atmosphere are the factors that contribute to the constant in flow of expats coming into Singapore. Most of the foreigners stay longer after experiencing the elevated quality of life on this island.

The high cost of living can potentially cause problems for expats who have a limited budget. As a foreigner working in Singapore accessing a foreigner loan from banks and other institutions can especially be very difficult. This is because the requirements are severe and being a foreigner, the loan application approval is very thorough. The loan application process takes a rather long time and the interest rates are equally too high because most of the foreigners do not possess any assets in Singapore to act as collateral. The assistance of the foreigner loan can help you as a foreigner; raise the amount of money you need to meet your expenses.

The Financial Burden

  1. Deposit for rental of your apartment. When you are new in a country away from friends and family, you will require having sufficient funds to cater for your needs. To have a roof over your head, money for rental purposes is needed.
  2. Traveling around in Singapore to explore the new house, new school for your children. Before settling in Singapore, you will need to look around for a new house and a suitable school for your children. Money here becomes a factor as to the kind of house and school you can get.
  3. Deposit for school admission and school fees. Once you have found a school for your children, admission and school fees is to be paid to secure your children’s education.
  4. Having a house will require you to furnish it to make it comfortable for your family. In addition, you will have daily necessities to prepare for in a new country.
  5. Buying of a car. A car becomes an essential part of your stay as it makes you mobile in exploring Singapore and getting to work.

Difficulty In Obtaining A Loan

In order for you to have access to the loan facilities in Singapore, the lack of assets and proven work records makes it rather difficult for foreigners. A bank requires a long time to approve loans to a foreign worker since the application process and authorization are rather rigorous. Further to this, the percentage rates on foreigner loans from the banks are higher than the standard rates. The high-interest rates are attributed to the fact that many foreigners do not have assets in Singapore to be taken as collateral. Such a loan poses a big risk for banks than loans to local borrowers.

This for most foreigners is not a major concern considering they require the funds, and that they are able to pay back the loan by the next income. It is about being able to reimburse your loans within the contracted time limit. 

Approach Moneylenders For Foreigner Loan

Make sure you apply for a foreigner loan from an accredited institution. Here you will be required to fill an application form available online attach your required documentations and then wait for a loan officer to contact you to set up a meeting at the bank offices. The bank representative will normally contact you within a day. You will be required to present your documentations for the verification and application processing of your loan. A valid work permit, proof of residence and a valid passport are some of the required documents you will need to present to the bank. Below is a list of the documents you will need to present for your loan application.

Needed Requirements For Foreigner Loan Approval

  • You need to be between 21 and 55 years old.
  • You require having a valid work permit
  • Make sure you have a valid Passport
  • Make sure you have employment letter as proof of full employment
  • Proof of residence. You can submit a bill with your address printed.
  • Original and copies of current payslips for the past three months
  • You need to have a current Bank statement

Speedy Approval And Friendly Consultation

Foreigner loan application is easy to do, as you are required to fill an online form of application attaching the requested for documents then wait for the bank representatives to contact you. Once your documents and details have been verified, you will need to sign a loan agreement and the loan will be approved and funds disbursed immediately to your account. This way you will be empowered to meet your financial needs with ease.

Conclusion

Life in Singapore is rather expensive and for a foreigner working here, it can be even more difficult when they are working on a limited budget. Even with the perfect conditions for a thriving economy and political stability, the foreigner numbers are constantly rising. For a foreigner, life away from home is a big challenge when you are short on money.

Getting a loan from moneylenders is equally not easy for an expat since they hold no property and assets to use as collateral for their loans. Foreigner loans have very high-interest rates since banks are taking a big risk loaning money. As a foreigner living and working in Singapore, do make sure you apply for loans from certified moneylenders.

Since Singapore government has stipulated regulations that they are to abide by when offering moneylending services to their customers. Also, make sure you read through the terms and conditions for the loan to ensure no hidden charges are charged in addition to the normal rates. Once you are ready to apply for a loan present all the required documentations and signed a loan agreement, your loan approval and processing will be fast and smooth.

Should You Go To A Pawnshop Or A Legal Money Lender?

Pawnshops are rather prevalent in Singapore. You may be in need of some quick cash to attend to an emergency; banks won’t loan you money, credit cards debt are fairly expensive in the current economy. The slow economic growth of Singapore has had adverse effects on most people making it difficult to access loans from money lending institutions and other financial institutions. This makes it possible for licensed money lenders and pawnshops to operate and experience a rapid growth. This is because both money lenders and pawnshops do not require you to have assets for collateral as required by banks.

Pawnshops and certified money lending entities make it easy to access to quick cash. This works best for those who require small and urgent loans. Pawnshops and money lenders normally offer higher interest rates and money is available without the review of your credit records. This makes is easy, fast and convenient in the current slow economy. The instalments make it possible for easy repayments. Since the cash is available upfront, there is fast approval period taken and you get to handle your money emergency issues immediately.

What Is Licensed Money Lender

Money lenders are institutions that are approved by authorization agencies like Singapore’s Registrar of Moneylenders. Before the money lenders entities are issued with a license, they are required to take and pass a test. Moneylenders normally function under a number of restrictions such as the loan limit they can loan out, the amount of fee and the interest rates they are to charge. To a licensed moneylender institution, its reputation is very important.

These normally offer smaller loans compared to banks. They also make the loan amount obtainable much quicker than banks. This is possible when you have in the past have presented all your documentation and undergone the necessary background checks. Such a record allows you to obtain a loan within an hour from a certified money-lender. Moneylenders also charge higher percentage rates than banks, have simpler requirements for an authorization of a loan and tend to be more lenient when you hold a low credit rating.

What Is Pawn Shop

Pawnshops are fairly easy to work with. They offer loans that are secured using something valuable that you give in exchange for the loan. The valuable item- can be jewellery or an expensive watch- is retained by the pawnbroker until you have fully reimbursed the loan plus interest accrued.

Pawnshops are under the regulation of government agencies and compared to the past, they more respectable. In the past, walking into a pawnshop, people would assume and believe you to be a gambler, a drunkard or as someone with poor management of their finances. This perception has, however, changed and pawnshops are now acceptable as another option for people to get loans.

When you are uncertain of whether you can meet monthly instalments and whether you will have the money available for repayments, pawnshops are an ideal choice for you.

Difference Between A Pawn Shop And A Licensed Moneylender


Default Penalties

Certified money lenders have high-interest rates on all their loans. In case you miss a few times to meet repayments to a money lender, the amount of interest gets compounded on the money you owe. This means when you default on payment, you will end up paying a lot more than you had initially borrowed. And soon debt collectors will be making visits to you to recover the money owed.

When you make use of a pawnshop loan, and miss a repayment and are not able to pay back, the collateral you presented in exchange for the loan amount becomes the pawnbroker’s property. The pawnbroker can at his discretion sell off the item to recover the money you owe. The downside is that you will lose your precious item.

Interest Rates

The pawnshops charge very low-interest rates on loan amount borrowed. This rate is even lower than credit card companies charge. While certified money lenders charge a much higher percentage rate on the loan amount borrowed.

Repayment Plan

Money lenders have a structured repayment plan and a fixed instalment to be repaid monthly while pawnshops have flexible repayments; you get to pay when you have the money to make payments with no compounding amounts.

Credit History

Before getting a loan from money lenders they do a thorough credit history review to ensure you have a clean credit history, while pawnshops do not require looking at your credit history or do credit review.

Collateral

Pawnshops require you to present them with collateral which is a precious item that you own, while money lenders only need collateral depending on whether the loan you are taking is unsecured or secured loan.

Trouble-free Access To Money

Pawnshops offer an attractive alternative to going to money lenders. You do n not require to present proof of identity or income to get a loan, while money lenders require you to hand in proof of identification and employment letter as part of the documentations they need you to submit.

Conclusion

The slow economic growth of Singapore has had adverse effects on most people. This has made it difficult for most people to access loans from money lending institutions and other financial institutions. The pawnshops and money lenders make it easy for you to access quick cash. This works best for those who require small and urgent loans.

Since the cash is available upfront, there is no approval period taken and you get to handle your money emergency issues immediately. There are various differences between money lenders and pawn shops like the repayments plan; pawn shops offer the lowest rates and their repayment plan is more flexible, while money lenders have structured repayment plan with set monthly instalments.

Money lenders charge high interests and when you miss a repayment, the amount compounds increasing the amount you had initially applied for. Pawnshops on the other hand, do not charge any penalties on any defaulted payments and the amount you owe does not compound. Pawnshops require you to present a precious item to act as collateral while money lenders only require collateral depending on whether the loan you are taking is unsecured or secured.

 

Payday Loan vs. Personal Loan: What Are The Differences?

Singapore is one of the most expensive cities in the world. The thriving economy, high standards of living, political stability and a perfect investment atmosphere are factors that contribute to the continuous growth in the high cost of living in Singapore. Life in Singapore is rather expensive for any individual who has a limited budget. Living in a city that bleeds you dry financially, can be complex and challenging for you if you have a low income to sustain your livelihood in Singapore. This is made worse by an individual who is not in a position to come up with money for unforeseeable emergencies.

Having access to a loan from banks can particularly be difficult if you do not have proof of your ability to reimburse the loan taken plus interest. This is so since the requirements are strict and the loan application process and approval is very systematic. The application process takes a long time since your credit history needs to be reviewed. There are many loan-types available from a different type of financial institutions in Singapore. These are meant to meet different needs for the borrower.

Today, we are discussing the differences between Payday Loan and Personal Loan offer by moneylenders.

What Is Payday Loan

The payday loan is an intended advance on your up coming take-home pay. For you to qualify, you need to be above 18 years old. You also need to hold a steady job and a bank account. Being self-employed does not make you eligible for the payday loan.

Payday moneylenders do not rely on your credit history, credit report or the absence of it to extend this service to you. Instead, a fee ranging between $10 and $30 is charged for every $100 borrowed. This makes the payday loan more costly than normal loans. The positive side they offer quick cash for individuals when they need it. Payday loans are mostly approved in 24 hours after the application has been submitted.

What Is Personal Loan

Personal loans work much like normal loans. During your application, you will be required to hand in your information concerning your income. The moneylender will then appraise your credit report to establish whether you qualify to receive the loan.

Since personal loans are mostly issued as unsecured loans, the approval of your application will mean you get a monthly repayment plan and an interest rate as stipulated in your application. Once your loan has been approved, the moneylender will determine the amount you need to be contributing monthly based on your existing earnings and debt.

Key Differences Between The Two Of Them

Who To Borrow Loan From

A government certified moneylender is the one entity that has both personal and payday loans. The other financial entities in the market only offer personal loans.

The Purpose And Repayment Period

Payday loans have a short-term repayment period of about 2 to 4 weeks. This type of loan is often for paying off bills and emergencies before getting your next take-home payday.

Personal loans run for a longer period of 4 weeks to a few years and are intended for big purchases, investments and for business requirements.

Who Qualifies For The Loan

A payday loan is easy to get because it depends on your status of employment as well as your income level.

The personal loan requires more strict checks. But it offers you the chance to borrow a larger amount of money, normally 2-4 times your earnings. This, however, varies from one financial institution to the other.

Loan Processing Period

The payday loan is processed much faster time owing to the effortless verification procedure of income and status of employment.

Personal loan, on the other hand, takes more than one day for processing before you get the money. This is so since the institution has to do thorough checks to ensure that your credit history is impeccable.

Loan Percentage Rates

Payday loan charges a higher interest rate compared to personal loans, thus the shorter settlement period. This is partially due to the nature of the loan and your eligibility.

Payday Loan Vs. Personal Loan: Which Is Best?

People who require quick cash or emergency funds that are to be reimbursed within a short time need to consider taking a payday loan. Even though this loan comes with higher percentage rates compared to those of a Personal loan. The payday loan has higher interest rate and the short repayment period, meaning that you pay less interest, as opposed to a personal loan that has lower interest rate and is to be reimbursed over a longer time.

However, when you intend to make a big ticket purchase, a Personal loan is a better option available to you. This type of loan is payable in instalments over an agreed upon period of the loan tenure. Additionally, these kinds of loan furthermore offer flexible reimbursement terms and you can choose either a monthly or a bi-weekly repayment plan.

Singapore is one of the expensive cities in the world. Singapore’s thriving economy, high standards of living, political stability and a perfect investment atmosphere are factors that have contributed to the continuous growth of the high cost of living on the island.

In order to sustain the high costs of living in Singapore, a borrower can access the various types of loans to be able to supplement their funds. Both payday loan and personal loan can contribute greatly to the meeting of your daily needs.

Payday loan is the easiest to obtain as with a confirmed employment status and a bank account, you can have your loan approved fast. This loan is usually repaid once you get your take-home pay.

Personal loans, on the other hand, allow you access to a larger amount of money that you can then pay in monthly instalments for a longer period of time. Each type of loan is best suited depending on the purpose of the loan; for fast cash to be repaid in shortest time a payday loan is the best choice while for a larger amount of money to be repaid over a longer time period and lower interest rate, the personal loan works best.