People have different reasons why they apply for cash loans in Singapore, unknowingly they make mistakes that may cost money and time. Certain mistakes are easy to avoid, read on to know and understand each, so you won’t end up regretting like many others.
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Taking the First Offer
Take you time to do some research and shop around. You are the one who need the money and you need to shop around to avoid those who will take advantage of your needs. You might consider taking loans from a bank but it will take much longer since banks usually require a lot of paperwork. Try a private moneylender that gives more choices with terms, interest and repayments.
Money lending business is a competitive market, you will surely find the best personal loan that will fit your need and ability to pay.
Not Knowing the Credit Rating
You have the right to check your credit score because getting a loan greatly depends on it. Make sure that your credit score is accurate. Your lenders are the one who updates you credit history, so make sure they include the times when you repaid on time.
The credit score reflects you credit history. There are a lot of ways to keep it in good shape such as avoiding too much loans, paying credits on time and not defaulting a loan. With a good credit score standing, you may have your loans easily approve and get lower interest rate.
Not going to Eligible Moneylending Company
There are a lot of ending companies floating in the web, you have to choose a licensed moneylending company in Singapore. Check how long the company has been in the business. A tenured company means they are providing quality service enough to keep them in the business.
Don’t Check the extra Cost
When it comes with personal loans make sure that you add the extra fees and closing costs to the total price of what you need to pay. Look at terms carefully and ask you lender if you don’t understand some part.
Rushing through Fine Prints
There will be some terms that might add some costs if you are not careful. Avoid the late payment penalties and prepayment penalties.
When borrowing money from a lender, think wisely and do not get carried away by your emotions. Do not get too excited. Get the loan that best fits your need and financial status. If you are borrowing money to help a family member or a friend, that is not a good idea.
Never lie about your income and credit score. Your lender will have the means to counter check your info. If you get caught, you might be in deep trouble by losing your loan and paying a large penalty.
Be realistic. Even though you have a steady income, you may think that you can easily pay off a loan. Remember that there are still a lot of expenses, bills and needs to attend to. Budget the money well and pay your loans on time.
Skimming the Terms and Conditions
Read the term and understand the words in them. Do not rush. Read the conditions and take not of certain specifics that might cause you losing money and end up with a bad credit.
Not asking Questions
It is fine to talk to your lender about some unclear term. Ask away, it could save your time and money. Let them know your personal case because they are most likely able to offer you the best loan right for your needs. Each borrower is a unique case, if there is a problem it is better to let your lender know about it. Do not be afraid when they try to contact you, they just want to help you pay off the loan the way you have agreed on.
Borrowing Too Much
Make sure that you borrow what you can pay off. If you are unable to pay off the loan, you might end up with defaulting. Once defaulted, the interest rates will dramatically increase, and you might lose your assets.your bank accounts will be seized and might get closed.
Many do not negotiate with terms and just accept what the lenders present. Usually, borrowers can negotiate with terms to avoid the position of being financially constraint. You are getting a loan to help with your financial needs and not add up you your debt problems.
Unnecessary Over Extending
Some lenders talk the borrowers into extending their loans. If you do not need it, do not be tempted to do so. This will only make your credit score look bad and you will end up paying much more than you had borrowed.
People apply for loan with various reasons. They maybe single moms who are stuck in budget, want to pay off debt, buy a gadget, go to a vacation or pay a medical bill, but all needs extra cash. It is tempting to have a lot of cash, but do not open a loan if you do not really need it. Be serious with the repayment schemes and never hide from your lender. Loans are suppose to help you, do not over use it.
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