Mon to Fri: 11am – 8pm | Sat: 12pm – 5pm

4 Smart Tips You Should Know Before Borrowing Money

woman working in her desk

There are unforeseen situations in life where you require extra cash to maintain your lifestyle and at the same time, invest for the future. It can also be hard to make ends meet when you are struggling financially. These circumstances require you to have money, and most people would turn to licensed money lenders for instant cash loans to tide them over hard times.

Borrowing money is a process that requires careful evaluation of your circumstances. While there are instant loan approvals that offer fast cash easily, you need to ensure you are able to pay back the loan on time to maintain your credit score and avoid financial troubles in the future. So, what should you take note of when it comes to borrowing money? If you are hesitant or having doubts, take a look at a few tips below to help you borrow money effectively before you take out a personal loan.

1. Plan the amount you need

Be sure of what you want, and this is applicable for borrowing money. It is important to have a plan and be certain of the actual figure you want. This way, you can outline what you need the money for and allocate the budget for it, so the amount you borrow is sufficient. Otherwise, you might be unprepared and end up with a loan amount that is less than what you require. Plan in advance so you won’t have to borrow money twice for one purpose. Consult with a licensed money lender in Singapore, like QuickLoan Pte Ltd, to help determine the loan amount you need depending on your requirements.

2. Purpose of the loan

Besides figuring out the amount, think about what are your intentions of using the money you are borrowing. It will be helpful for yourself to come up with a list of the things you want the money for. This will help you keep track of your end goals in mind, rather than deviating and spending the money for something unplanned. For instance, if you need a new laptop to perform your work tasks, then it is wise to re-consider from spending on a new designer handbag first. Evaluate your needs and wants, and prioritize them accordingly.

3. Your credit history

What is your credit history? Have you repaid your previous loans on time? These are some of the questions that you ought to consider before borrowing. Credit history reflects how well you have been paying back your previous loans. With a good credit score, this can be helpful for a rainy day in the future when you are in need of a bigger loan. Traditional financial institutions like banks typically require good to excellent credit scores, but if you are struggling with one that is less than ideal, legal money lenders are able to work out a flexible loan package that fits your financial situation better.

4. Agreeable terms and conditions

When it comes to applying for loans, there is a written agreement in place with specific terms and conditions. You will know how much you are borrowing, the principle and interest rate involved and how long is the repayment period. You can always refer back to this documentation for future reference. This will pose less risk for confusion and steer you away from any undesirable penalties. Ask questions, clarify any doubts and go through with the loan advisor on your contract thoroughly before signing on the agreement.

Borrowing money requires commitment and a good starting point. Keep these tips in mind before applying for a cash loan, so you can borrow with a loan package that suits you best.

Apply for a loan today with QuickLoan Pte Ltd! Apply online today at www.quickloan.com.sg or call us at 6223 1788.

Read More of Our Guides

Quick Loan Pte Ltd. poster
Loan Guides

Downtown Licensed Moneylender

“The Downtown Core is the historical and downtown centre of the city-state of Singapore and the main commercial area in Singapore excluding reclaimed lands with

Read More