Personal loans in Singapore are indeed lifesavers. They give families in need a chance to settle their finances and pay for any emergency and immediate expenses. While personal loans are essential to Singaporeans, there are many who cannot apply for one simply because of bad credit.
This article discusses how people with bad credit history could improve their record so that one day, they will be able to apply for a personal loan in Singapore successfully. It lists down ways, tips, and secrets on how you can recover from bad credit.
Apply for a Smaller Loan Amount
For those with good credit, applying for a personal loan is easy, but Singaporeans who have bad credit score find it impossible to get a loan from banks. The problem with having bad credit is that you will not be able to get personal loans, particularly high amount of loans. To end this cycle, you first have to work on improving your credit history.
Make sure that financial institutions and lending corporations will trust you. To do this, you can start by applying for a smaller loan amount. Apply for a loan that you are certain you can pay. Once you pay this small amount loan in time, you will improve your credit history.
For someone with bad credit, personal loans to fund a car or a house might be next to impossible. Why not try to loan for a personal loan to renovate certain parts of the house or to buy a new gadget that you need? Banks and other lenders can grant you this personal loan thereby helping you build a good record.
Although it may take several small amounts of loans before you can improve your credit rating, this step will allow the financial companies to know that you are capable of taking responsibility for your loans.
Also, having this type of loan can psychologically prepare you when the time has come that you have to take a bigger amount of loan. It will help you learn the necessary discipline when it comes to paying off a personal loan or any other type of loan.
Restructure Your Outstanding Debts
Another step to improving your bad credit score is to settle any existing debt. This is to clear your record from any debt. This will also ensure the lending company that you will be able to take a new loan because you are done with any prior commitment.
Meanwhile, for those who are having a difficult time paying off their debt, the best way to settle your debt is to restructure them. You can ask your bank or the licensed money lender who loaned you to decrease the interest rates of your loan. You can also negotiate with them so you can have a longer period of time to pay off your debt.
Restructuring your outstanding debts gives you a chance to easily pay off your debt. It helps you manage the time of your payment as well as the amount of interest rates you have to pay. Do not be afraid to talk to your banks. Surely, they can offer you the best possible option for you to pay off your outstanding debts.
In terms of your credit cards, you can also ask your bank to restructure your payment scheme with them. You may want to change the date of your monthly payment just to make sure that you have enough time to save money. Do not hesitate to get the best deals so that you will finally get a good credit score.
Consider Borrowing from Non-Bank Financial Institutions
If you are unable to improve your credit record, you might want to consider other financing options. These non-banking financial institutions have helped thousands of Singaporeans in the past.
Two companies in Singapore that you might want to consider are Hong Leong Finance and Singapura Finance (registered with the Monetary Authority of Singapore). Do not hesitate to contact them so you may choose which of their loan deals fit you.
Do remember that these non-bank financial institutions also rely on your credit rating. You have to prove to them that you have low risk as a borrower. The less risk you bear as a borrower, the more money these credit institutions can lend you. These non-bank options may have interest rates but you can always try to talk to them to make sure you can get the best deal.
For those who are in desperate situations, you can also try borrowing money from a licensed moneylender. Just beware that loans from licensed moneylenders often have a higher interest rate compared to banks. Thus, it is still important to research the best loan deals that fit what you need. This interest rate can be challenging for some clients.
While you are considering all non-bank options, remember that we do not suggest going to a loan shark. Loan sharks have a high risk compared to any other lending option in the Singapore market. It might even give you more trouble than what you already have. Try to look for legitimate Pte Ltd companies that could help you with what you need.
Make Full Repayments
Another technique of improving your bad credit score is to settle your existing loans. Pay your loans in full so that you will no longer have an outstanding. If you cannot do this, try to stick to your payment schedule.
Do not miss any payment deadline so that you can have a good credit score or credit rating. For your credit cards, make sure that you do not pay them on time. Being consistent in your loan payments show to financial and loan companies in Singapore that you are ready to take a personal loan.
Once you have built a good credit rating, make sure that you will keep a good record for the rest of your life. After learning that applying for a personal loan in Singapore can be difficult for those with a bad credit score, you may want to protect your credit record forever.
Make sure that you have no outstanding debt. If in case you have an existing loan, ensure that you are paying them regularly. All of these steps contribute to giving you good credit.
Where to Apply?
It is true that there are many loan options in Singapore. The challenge then is to find the best financial company that can help you with your specific need. For many, it can be intimidating to choose a lending company because of the many options they have in mind.
One way to choose one is to compare loan rates though using loan comparison websites. There are several online resources that specifically aim to help clients in Singapore. Focus on looking for Singapore personal loan materials that could guide you with what you need.
Meanwhile, those who find it impossible to improve their credit score can try applying to licensed moneylenders. There are legitimate financial Pte Ltd companies that can help you with your money problems.
You can begin with Fortune Pte Ltd and see how our loan offerings fit your need. Licensed Moneylenders can be a good remedy for those with bad credit because they can be more lenient than banks. You can consult these companies for you to get a personal loan from them.
Personal loans Singapore have saved thousands of people in need but for those with bad credit, applying for a personal loan can be difficult. The long-term solution to this is to improve your credit record.
For those who cannot do that, the best option is to find for non-bank companies where you can easily get a personal loan. Singaporeans who are really in need are sometimes willing to take loans with high interest rates just so they can get the money they need.