Before getting any loan type, it is important to consider all its positive and negative arguments. Look at whether the loan is beneficial for you when considering the interest rate, terms of payment, etc.
For example, when you do not intend to get a huge loan which is to be repaid within the next 5-10 years. It may be a good idea to get the least interest possible.
As far as payday loans are concerned, they might have rather high-interest rates. Even so, Singaporeans who urgently need quick cash get them since they are to date the fastest option. Although payday loan is among the most common financial services today, many people do not know how they really work.
Actually, when applying for personal loans, you might not be aware of all the benefits that go beyond its main purpose – handling your emergency bills.
What Is a Payday Loan
This loan type is a short-term small loan. The payday loan will offer you funds to settle your monthly bills. It is most effective if you do not want to default on the monthly payments. This loan type is useful and you will not have to explain the bounced post-dated check.
When you are facing financial emergencies that need instant attention then payday loans are suitable for you. In Singapore, most moneylenders offer this loan type which has many advantages. When compared to most traditional loans, payday loans do not necessitate collateral when getting them.
Advantages Of Payday Loans You Need To Know
Credit Score Is Not Important
Taking out a payday loan comes with another pleasant benefit: a credit score analysis is not necessary here. When you cannot present a good credit history, you can be relieved to know this since the credit score is not an obstacle in obtaining the payday loan type.
The one difference that your credit score will make on the loan you take is increasing or lowering the interest charged. It then means that individuals with excellent credit scores will get lucky and enjoy lower rates compared to individuals with poor scores.
The good news is that payday loans may help you in improving your credit score. All you need to do is make prompt loan payments and ensure you successfully repay it in full.
They are available at any time
You could face an emergency at any time be it day or night and most t moneylenders cannot ignore this reality. Institutions offering payday loan are normally open 24/7 thus making it possible for them to process their customers’ applications immediately once they receive them. Many money lending services can be accessed online, thus it means you will not even need to get up from your couch in order to make an application for a loan.
It Is Among The Few Fastest Methods Of Getting Instant Cash
An emergency requires an urgent action and when you choose to get payday loans so as to manage your emergency expenditure, you have to obtain one almost immediately. The application procedure normally takes several minutes and only requires minimal information.
Several moneylenders are also ready to disburse the funds in just a matter of few hours after the approval of your loan request. But, the common waiting period is one to two business days.
It Is Very Easy To Qualify For Payday Loans
There is not much information needed as you fill the application form. This means that there are almost no major requirements to make you ineligible for the payday loan. The only key requirements for the loan are having a steady paycheck, being 21 years and above, and having a valid account.
The other important data that the licensed moneylenders would like to know is the source of your monthly income and whether you have ever had a default or take out another payday loan in the past.
The Payday Loans Are The Best Way To Start You Off
When you do not have any experience in taking loans from moneylenders, the payday loans are a good way to help you start learning about the money lending world. From it you will learn about how to work with moneylenders, even to discipline yourself in making regular monthly repayments and also manage your monthly budget even with these payments
This Loan Type May Be Used For Any Purpose
One misconception regarding the payday loan type is that borrowers can only utilize the cash on your own personal needs. However, though the payday loans do not have any limitations on how they should be used.
No one will be controlling just how you utilize this loan type, and this means you have an endless variety of options: from settling your other outstanding loans to even investing in a small business.
The Qualifications For Getting a Payday Loan
In essence, the criteria for fulfilling the requirements for the payday loan is quite simple. To start with a borrower should be aged between 21 and 65 years. One compulsory requirement is that a borrower is a Singaporean or a permanent resident. It is also possible for foreigners to access the payday loan given that they hold a valid passport.
A borrower should also present their employment letter. This is essential during the application process as you will be expected to show proof that you hold a steady job. There are a number of documents that you will need to submit to help validate your application. These will include an appointment letter as well as a current payslip. Your letter of appointment is necessary for individuals who have been employed for less than six months.
In addition, you will have to present your income tax statement as well as bank statements. Singaporeans who have an existing bankruptcy filing will not be permitted to apply.
While applying for a personal loan, look to see whether the loan is beneficial for you in terms of the interest rate, payment terms, etc..This loan type is a short-term small loan which will offer you funds to meet your financial needs. Luckily the payday loan does not have any limitations on how to use the money.