How To Shop Around For A Loan In Singapore?

There will always be a point in one’s life that you may need to borrow money to pay off something. It could be borrowing money through a credit card so you can purchase an item or seek a secured loan to fund your business.

No matter where you need the money, there will always be a corresponding loan program and terms that will match it. In Singapore, you can seek all types of loans from both banks and moneylenders depending on your needs.

However, a lot of people tend to neglect when it comes to picking loans is that every moneylender or bank has their own prices for the loans they offer. One moneylender may charge high for their personal loan programs, but another moneylender can provide the same personal loan with a lower interest.

Know What You Need

Before you go shop for loans, it is best you know why you need it in the first place and how much you actually want to borrow.

If you are after smaller loans, a lot of offers are available for you to check out.

Smaller loans do not require you to have an excellent credit score, as well as when you are checking out credit cards. Credit cards tend to be diverse in the benefits they offer, as well as the rates they have per month. Smaller loans and credit cards are often retrofitted for a consumer’s use so you can always get a perfect fit for your needs and even find ones that come with benefits you did not know they offer.

For larger loans, consider where you will use it – like for business or travel – and check out the options from there.

If you are going to borrow for your debts, it is best you consider other options. Lenders will not approve loan applications if they are to pay off other loan debts. You will need to ask a debt manager to assist you in paying off these dues before you can apply for a loan.

Research First

Once you determine the amount and purpose of the loan, it is ideal to research all of the ones available in the market and learn everything about it. You shouldn’t immediately sign up for a loan just because it can provide you with the money. Some loans may not even serve your needs and you end up being stuck with them until the repayment period is done. There can be other financial services available which fit your needs.

Researching will ensure that you can narrow down the options you can use. It may be difficult, but it is worth it when you find the one you need.

When checking out for a loan, check out all the available financial institutions that offer the loans before you request a loan. If you are currently getting yourself pre-approved for a mortgage loan, for example, lenders can provide you with the various loan options available for your needs. Once you find the one you want, you can make the deal and make the offer to the house you want.

As you wait for the offer to be accepted, you have some time to check out other lending options available to you. You can take this time to approach moneylenders who can check out the quote(s) given to you by your primary lender and give you their offer based on it. Some lenders may give you a lower interest rate, provide grants or even offer extra options or benefits when you avail their product.

When you see these offers, pick the one which you can benefit more from lesser cost before your offer is accepted. If you failed to pick a good one from your second review and your offer is accepted, you are stuck with your primary lender.

Before you also agree on any offer, ask the lenders about their credit qualifications and requirements for their loan programs. Some moneylenders and banks may highlight their requirements on their websites, but others may not do so. You can call them up and ask everything you want to learn about the loans while you consider them.

Know Your Credit History

Once you narrowed down to the lenders you want to seek a loan from, you will need to consider if you have the “right” credit that will help you manage these services. Remember, if you have “too much credit” and you opt to get a new loan account, you may tarnish your credit rating if you failed to keep up with repayments.

If you are uncertain if your credit history is good or bad, you can always request your credit history from Credit Bureau Singapore and their partners. They will provide you with a 12-month report of your credit history and indicate your credit rating.

Alternatives for Poor and Bad Credit

When you know your credit rating and it indicates you have a poor or bad history, you can use several means to build your credit rating back up. Some good examples are paying your bills on time for 12 consecutive months or paying your bills in full.

However, if you do not have the time to rebuild your credit rating or you do have black marks on your history due to bankruptcy or default, you can check out licensed moneylenders that offer loans for such backgrounds. Unfortunately, if you do apply to these moneylenders, the amount you can borrow may be small and the interest rates can be higher than the standard personal loans they offer.

Final Remarks

When shopping for a loan, it is important you do not immediately pick one without considering all the options available. Take some time to research, check other offers, know your credit history and consider the loan you need before picking a loan. If you find something wrong or missing with your requirements, remedy it immediately before you apply for a loan.

If you picked one haphazardly or you did not consider your credit rating or your needs, there is a possibility it is mismatched with your financial capacity and repayment preferences. It can also cause mishaps to occur and it can be tricky to sort it out when it happens.

 

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