Just like the questionable multimedia documents you have on your hard drive, a few things cannot be removed regardless of how hard you might attempt to delete it. These files always leave behind a track that is easy to dredge up. The same goes for your credit practices as well; in this particular case, deleting will only come by means of getting rid of the debt fast, so that you can enhance your credit score.
However, it always does not work that way. In desperate attempts to apply for personal loans – whether to help you cope during a tough period and even for financing medical bills, banks will always have a record of how you have been managing your line of credit.
Give that you have a poor credit history and at the same time you have to obtain a bank loan, do not give up yet, there’s still hope even when the only loan option you were considering goes poof. The below-listed ways will very well reverse the fate of your personal loans and help you get the emergency funding you urgently need.
What You Need The Personal Loan For
Having to deal with your loan application being rejected isn’t the end of your life. It simply is the end of a disappointing attempt to obtain a loan. Even as there are many alternatives to the banking institutions, there are choices available to you for the loan as well. As soon as you have clearly outlined the purpose of the personal loan, your Plan B will also become much clearer.
For instance, when you require the personal loan for startup use, or maybe for kick-starting the start of a revolutionary personal project, it’s time you discovered the surprises of peer-to-peer lending plans, crowdfunding as well as the microloans issued by SPRING Singapore.
Consider Other Funding Avenues Available
When in urgent need of funding, bargaining for personal loans with banking organization can feel rather pointless. Large financial organizations as such always have a set of stringent practices and protocols to maintain, thus a no from them is simply that. Instead of fussing about it at the banking hall or even giving up all the same, possibly the answer is as easy as circling the set procedures.
Do realize that banks are big financial institutions, and not the one and only. It is worth noting that there are many other avenues for funding that can give you the second chance such as the licensed moneylenders. Let’s look at pawn shops, for example; you could and un-hoard the luxury pre-90’s goods for you to get a loan. When you also require a more time for your repayment and you do not mind losing your ‘assets’, then go ahead and coax them to the willing buyers. However, in some cases, you may not have much control of the trend.
When you would like an alternative that is on the same level as the banking institutions in terms of speedy approvals and high loan limits, you may think about shopping around for the right licensed moneylenders despite the many preconceived notions some people have. These lenders are more ready to accommodate your loan requirements.
Furthermore, owing to the new effects that started last year, these legal moneylenders will no longer overprice their rates of interest to their borrowers. It was amended from a high of 20 percent per year to 4 percent each month.
Request For A Loan But With Help
Before you jump to the wrong conclusion, the idea here is not asking you to commit an identity theft. On the contrary, what is being suggested is that you enlist the assistance of somebody who trusts and knows you well enough to take out a personal credit on your behalf. If you are someone who used to take out credit in past, it’s likely that you were always asked to list your guarantor.
In this case, it will be like you are getting the guarantor to do the borrowing. Likewise, you will, in addition, be putting the individual’s credit score in jeopardy, therefore be even more accountable for your personal loans as you would your own it. The loan is your, the more reason you need to be accountable.
Show The Lenders The Proof Of Money
It might happen that you are back in the money; however, the bank still puts the rejection stamp on the loan application since that one bad financial choice you made many years ago has left a lasting mark on your credit record (and let this be your learning point!). In spite of everything, no one likes the feeling of continuing risks even with the hope of beneficial returns.
Before you despair, there are very many local and foreign banking institutions in Singapore available for you to choose from in case when your first choice of lender turns you down for a loan application. It still is possible that you to negotiate with the mortgage officer.
One important thing for you to keep in mind before you go straight to your lender to give your case, make sure that you have armed yourself with the right documentation for instance bank statements and also the latest credit report for you to submit them to your potential lender to show them that you’ve been careful in servicing your debts.
Having a bad credit score can leave a lasting mark on your credit history. The solution to a bad credit rating is only doable by getting rid of the debt fast to help improve your credit score. Even then it is important for you to realize that all your credit practices are always recorded in this statement.
Thus a low credit score can remain in your credit history for a long time and it will certainly have an impact on your future loan applications. Before you give up you need to realize that there are many other alternative sources of funding besides the banking institutions. Therefore shop around for the right lender who is ready to offer you a loan despite your poor credit rating.