Where do you get your cash when sudden needs arise?
Of course, you would first need to calm yourself to find a way and get your funds. This way you can easily compare your options and finds the best answer to your financial problems.
Among these options, which one would be the most accessible and the safest?
If you have a credit card, that means you also have that key to get cash from any affiliated ATM in the island. The withdrawn cash will be directly charged on your credit limit.
It is so easy, you just need to key in the one-time PIN. Remember that you should withdraw within the cash advance limit. This is lower than the credit limit of your credit card.
This feature is only for credit card holders who have good credit standing. This means that you should have been able to pay your monthly credit card bills on time.
Cash Advances are short-term loans from banks. Expect high-interest rates to charge for you starting from the day you have withdrawn the cash. Cash Advance interest rate ranges from 28% to 29.9% per annum.
Speaking of interest rate, cash advance interest rate is compounding. This means that the interest will be charged on the current balance and not on the principal loan amount you have withdrawn.
The longer it takes for you to settle the cash advance, the higher you have to pay. This can also drag your credit score too.
- Credit Line or Line of Credit
The credit line is a pool of cash readily available for you to access. Just like with credit card cash advance, you can just go to an ATM and withdraw the cash you need. You can use the cash for any purpose that you want, anytime you need it.
How does it work?
You need to go to your bank and request for a credit line or “line of credit.” The bank will require you to provide the needed documents to evaluate your creditworthiness. Then you have to wait for a couple of days to get an approval.
While you may say that you can access cash instantly, you need to apply for it and wait for a few days.
Once approved, you will get an ATM card which you will use to access the cash on the credit line account. You can borrow any amount without withdrawal fee, but there is an annual fee whether you use it or not.
You need to have a good credit standing for this service since banks are very risk averse when it comes to loans. Some banks may require a collateral and others just offer this to their longtime customer.
- Instant Cash Loan in Singapore
Personal loans from registered moneylenders are one of the best options if you need emergency cash. The loan process is faster than the bank’s personal loans.
A loan company in Singapore usually offer short term loans which you can pay either weekly or monthly depending on your preference. You may also use loan calculators to help you have an idea on how much you can borrow, the interest charges and a number of monthly installments.
There are also some moneylenders who process loans online. This is faster as the process can take from at least 30 minutes up to 24 hours.
You must be careful when choosing a moneylender. Make sure you are borrowing from a registered moneylender by checking the Registry of Moneylenders found in the official website of Ministry of Law.
While moneylenders are helpful in the times of need, there are also loan sharks who pretend to help you financially but will only suck on your finances. Learn how to spot a loan shark to avoid falling prey to their scam.
When it comes to accessibility with, personal loans can be your best bet. With emergency, credit cards may be used mindlessly and inability to pay its dues on time will put you to financial distress.
Credit line requires you to have a good credit standing and an existing credit line account to be able to use it. Opening a credit line account will take days. Personal loans only take hours.
When getting an emergency cash, learn the benefits and limitations of your options. It is best to shop around for the best solution despite the pressure the emergency situation has.
And no matter what is the reason for the loan, make sure that you read all the terms and conditions to avoid mistakes. While there is a serious need for a cash, you must not let this need be your financial downfall.
Also, it is still recommended that you maintain emergency funds. While it is helpful to find ways to borrow cash, having cash savings is surely one of the most helpful.
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