Have you planned to get a personal loan in Singapore but have been rejected several times due to bad credit history? Many think that after having a bad credit history in Singapore, it would then mean that you can’t get a loan anymore.
Well, having a bad credit history may not be nice, but there are also ways on how we can get a loan with such a situation. There are times when we need cash like having unexpected hospital expenses, or you haven’t found new job yet hence you don’t have enough money for your daily expenses.
With these kinds of situations, applying for a loan is your only chance to get the money you need, but because of your bad credit history, you are afraid that you will be rejected by banks and moneylenders again. You don’t have to worry anymore because we have solutions for you.
How to get a personal loan with bad credit?
If you wanted to get a loan, here are a few options which you can consider and try:
● Restructure Your Debts
Whenever you are already bombarded with lots of debts, and you don’t know how to handle them anymore, you may opt to talk to the bank representative and ask for a restructuring of your debts.
Through a debt restructure, you can ask them to lower the interest rate of your loan, and they may also extend your repayment terms like extending it to a few more years; this way, your monthly repayment would be lessened which can help you keep up with all the responsibilities you have to pay every month.
You may also consult the Credit Counseling Singapore where they can give you advice on how you can handle your debts. They may also assist you in convincing the bank to provide you with more time to pay your debts thus you can have the chance to clear your record in the bank and could even help you in getting another loan.
● Apply for Smaller Loans
If banks can’t approve your big loans then, you should try applying into a smaller loan amount, but you have to make sure that you will be paying this new loan on time. This way, you can earn the bank’s trust again.
Aside from paying your new loan, you also shouldn’t forget about your old loans. Paying your old loans might be hard if you have a money shortage, but if you are determined to clear your bad credit history, then you must face and pay your old loans.
● Try Licensed Moneylenders
What’s good with moneylenders is that they aren’t that strict with requirements compared to banks that are why a lot of Singaporeans who can’t have a loan from banks would run to licensed moneylenders in the country.
Getting a loan from legal moneylenders may be easier, but you also have to remember that they have higher interest rate compared to banks which could range from 4% to 15% per month which makes it too expensive for most borrowers.
With this high interest rate, it is surely not that commendable to get a loan from moneylenders, but for those who are really in need of money, they would be drawn to jump into this kind of loans and get the money they needed without thinking twice.
Moneylenders are not recommended for those who are applying for small loans too for they have very high interest which is not right for those borrowers. As a borrower, you wanted to maximize your money, but with their high interest rate, you would surely have a significant loss in this kind of loan.
Before you would apply for a loan from moneylenders, make sure that you can get the details of the loan such as the repayment terms and interest rate so that you can check if you can afford the monthly repayment.
● Non-bank Financial Institutions
Aside from the banks and moneylenders, there are also some other non-bank financial institutions in the country such as the Singapura Finance and Hong Leong Finance who offers help to those Singaporeans who needs financial assistance.
These financial institutions are registered under Monetary Authority Singapore where they are allowed to give loans depending on how much you needed. Non-bank financial institutions ask for your credit history as well but what differentiates them with banks is that they have their own rules thus there are times that they offer loans to those with bad credit history as long as they are willing to pay the high interest rate.
With these choices you’ve got, you surely now have an idea with where you can loan the money you needed, but you also have to bear in mind that not all the time you can get help from these options hence make sure that you can pay all your loans and clear your bad credit history.