It may be difficult (yet not impossible) for you to access a personal loan with a bad credit report. Although your options are a lot less and the loans may be expensive, but there is a silver lining. If your credit history is “less than ideal” your luck has not run out. The key here is borrowing cautiously which can help you save some money and help build your credit score, thus making it easier for you to access a loan next time from a licensed money lender Singapore.
This also goes for your lending habits as well; the trail left behind by such habits can’t be deleted, but possibly deletion might be in the form of removing your debt fast, thus you could improve your credit score. But it often does not work this way. In the desperate request for personal loans –be it to handle a difficult period or even for funding a medical emergency—all banks hold a report of how you’ve been (mis) managing your lines of credit.
Given that you hold a bad credit record and despite that, you need to get a loan to help tide over a tough situation. There is somewhat some hope even though the only alternative you thought you had goes poof. Here are some ways that may very well turn around your loan fate and help get you the emergency money you require.
Request For a Loan – Except, Not As Yourself
Before you misunderstand the message implied, it does not mean that you are being asked to commit identity theft. No, on the contrary, it is being suggested that you enlist the assistance of someone who trusts and knows you well enough to take out the personal loan on your behalf.
In the past when you used to request loans, you would need to list a guarantor. This time, it’s like having your guarantor directly do the borrowing. In the same way, you will also be putting this person’s credit score at risk, therefore be doubly accountable for the personal loan like it was yours. Heck – it’s yours, to start with!
Consider Other Options To Banks
When you are in urgent need of cash, negotiating for a personal loan with banking institutions can feel like you are writing using a blunt pencil – all pointless. Large money lending institutions per se have sets of procedures and strict practices to maintain, so a no means no. Instead of throwing a fit at the banks or even giving up altogether, it could be that the answer is as easy as circling procedures.
Note that we say banks are large money lending institutions, not single. Other ways can give you the second chance of getting some fast cash. Let say pawnshops, for example; you can do a throwback to your past and use your luxury items for a loan. Let’s say you need more time possibility for repayment and you do not mind losing the possession of these ‘assets’, go with the times and auction them off to eager buyers. However, in such cases, you do not have much say.
Another option for you to seriously consider that is at par with banks as far as fast approvals are concerned and the high loan ceilings. Think about shopping around for legal moneylenders regardless of other people’s preconceived ideas. They can be more flexible in accepting your financial requirements compared to banking institutions. What is more, since last year when the new regulations kicked in, accredited moneylenders can under no circumstance overcharge interest rates to their borrowers. The rates of interest were revised from a high 20% per year to 4% per month.
Consider The Use Of The Personal Loan
Having your loan request being rejected isn’t the end of it all. It is just the end of one disappointing attempt for you to access a loan. Although there are many alternatives to banking institutions, there are various choices of the loan itself. As soon as you have outlined plainly what the use of the personal loan is, Plan B will also be clearer for you and the potential moneylenders.
For instance, if you require the personal loan for startup purposes, or even to help kick-start the launching of an innovative personal project, it’s maybe the time you discovered the wonders of peer-to-peer lending schemes, crowdfunding, as well as microloans from legal moneylenders in Singapore.
Show The Potential Money Lenders Your Money Proof
It can be that you have, in the past, been in much debt which you have repaid since. but unknown to them, the banks still place the rejection stamp on your loan request based on that bad financial choice you made many years ago that left a permanent mark on your credit record (This needs to be a learning point for you!). After all, no one likes the sense of long-term risks in the face of the prospect of profitable returns.
Even with this, there are several good money lending institutions available in Singapore for you to approach in the occasion that your first choice of lender refuses to approve your loan request. It is still possible for you to negotiate with your mortgage officer. Before you heading down to present your case, it is recommended that you arm yourself with all your documents like your bank statements as well as the most up to date credit report to present to them as proof that you have been thorough in debt servicing.
It may be difficult for you to access a personal loan with a bad credit report. However, you can access one. The key here is borrowing cautiously which can help you save money and help build your credit score. You could start by having someone who trusts and knows you well enough to get the personal loan on your behalf. Another option would be shopping around for legal moneylenders to work with. Even be sure you know the purpose of the personal loan.
Once ready to visit the lenders, ensure you take with you all your documents like bank statements as well as the most up-to-date credit report to present to them as proof that you have been keen on servicing your debt.