Many of us find ourselves in need of some urgent money to pay off a credit card loan, a crucial house mortgage installment, or our kid’s school fees. And during these times, it can be difficult to ask family, friends, or relatives to help out.
Personal Loans can come in very handy during these times and can allow us to access the required money without the embarrassment of asking friends and family.
This article will tell you everything you need before you apply for a personal loan, and where to apply for one.
What are the choices you have when applying for personal loans?
The following are the various forms of personal loans:
- A guarantor loan is a loan that requires a guarantor or a co-signer to be approved. These loans are great for people who have a low credit score or wish to negotiate their interest rate
- A debt consolidation loan combines several loans into a single new loan.
- Personal loans with fixed and variable interest rates
- Personal loans can be both secured and unsecured.
Steps to take before applying for a personal loan
Applying for a personal loan in Singapore can be daunting if you have never done it before. In Singapore, it is a lot easier to do so, as any Tanjong Pagar Moneylender, would likely guide you through the whole process anyway.
Regardless, it is always good to know what to expect, and what the loan application process might look like. Here’s what you need to check before you visit a money lender:
1. What is your credit score?
It’s important to check your credit before beginning the registration process for any type of loan.
While examining your loan request, financial institutions will look at your credit history and credit scores, among other things. Your credit history can influence whether or not you are approved for a mortgage and the rate of interest you are offered. Having good credit makes it easier to qualify for a mortgage with low interest.
2. Fill out an application for pre-approval.
You’re ready to apply for pre-approval once you’ve reviewed your credit. This can be called preapproval or pre-qualification
What is Prequalification, you ask? Prequalification is a loan application procedure in which a lender evaluates the details you’ve provided and makes you a mortgage offer you might be eligible for.
3. The lending offers you receive should be compared.
If you prequalify, you might get certain details after you submit your registration, like-
- The maximum amount of money you could be lent.
- Approximate rate of interest and fees
- Sum of the scheduled monthly payment
- Term of the loan, or how long you can take to pay it back
[ Also Read: Top 5 Ways To Collect More Air Miles With Your Credit Card In Singapore ]
Make a decision on how much money you want to borrow
It’s important to keep in mind that when you take out loans, you don’t only pay back the money you borrowed. You pay interest on it. So it makes no sense to pay interest on the capital you might not need, so only take what you absolutely need. However, if you borrow less than you need, you could find yourself obliged to turn to much more pricey loan providers at the last moment.
Only borrow if you can repay the money you loan. Don’t go into debt when the smartest course of action might be to wait till your circumstances changed.
I have bad credit, can I still apply for a personal loan?
Although it isn’t impossible, getting a private loan with negative credit can be difficult—it will almost certainly necessitate extra care and effort. If you find out you have a poor credit score while applying for a private mortgage, follow these steps to enhance your likeliness of getting approved:
1. Make some effort to raise your credit score: Raise your score as much as possible before applying. Although payment history factors for 35% of your score, reducing current loans and making timely payments might help you make significant progress.
2. Include a guarantor: Guarantors are allowed by some, though not all, private loan providers. A guarantor or co-signer is a person who promises to legally repay the debt if you miss installments.
Your guarantor’s credit score is considered, which can assist you in receiving a personal loan in Singapore.
3. Pre-approval might help you find a negative credit provider: Many lenders provide a preapproval service. This allows you to see what rates you might get if you file a formal request for a personal loan. You can identify lenders who accept negative credit customers and have a mortgage available within your needs.
Where to apply for loans?
If you live in Singapore and wish to approach a reputed personal loan provider in Tanjong Pagar, then a Singapore moneylender is one of the best options you could opt for. Situated in the center of Tanjong Pagar, is a reputed licensed moneylender with ten years of expertise serving borrowers. Personal loans, student loans, remodeling loans, wedding loans, and company loans are among the financial loans they offer.
As Tanjong Pagar Moneylenders are known for their quality of service and ease of loan processing, it makes sense to approach Tanjong for your personal loan needs as well. Especially as things can be daunting at the start.
To sum it all up, a personal loan can come in really handy, and help you meet all your short-term liquidity needs. There are various avenues that you can avail of getting a personal loan, but one from a licensed moneylender would be your best option, thanks to a number of factors. It is a good idea to plan the loan beforehand, and get it pre-approved so that you end up paying interest on the amount that you actually need to address your requirement, and if you happen to have a bad credit score as well, fret not, as the aforementioned ideas and methods can come in handy to improve it, and get an easy and quick personal loan sanctioned.
Getting a loan from Quick Loan
Quick Loan is a licensed moneylender in Singapore that provides personal loans. There are a large number of advantages that borrowing from Quick Loan offers. There are a few steps involved that one must execute to get a personal loan. One’s credit score affects the approval process, the rate of interest that they will be charged, the amount being sanctioned, and other nitty-gritty as well, and thus, this score needs to be checked prior to applying for a loan. Once one has reviewed this score, they’d need to pre-approve for the loan, and that would initiate the prequalification process. Once the lending offers are received, one should check out the various terms involved like rate of interest, repayment period, etc.
