Do you want a personal loan? Then have a planned approach
The scarcity of money can arise at any time, which is a quite challenging situation. In such a situation, you must go for a personal loan to fulfil your needs. But if your credit score is low and you need money urgently, then this situation becomes very challenging more than the money scarcity. Because of the bad credit score, none of the banks will allow you to take a personal loan from their bank. Now, what will you do in such a situation, how would you handle it?
In this article, you will get information that will help you to get a personal loan with bad credit score in Singapore.
Before discussing the above point, we are going to discuss the meaning of a bad credit score. A bad credit score is a four-digit score that is based on your previous history of loan repayment, if you failed to pay your loan instalment on definite time that results in a bad credit score.
To get a personal loan in Singapore with not a good credit score, you need to follow these things:-
- Apply for the amount which you can easily repay:- With a bad credit score, no company will give you a big amount for a personal loan. So it is better to apply for a small amount, as it increases the chance of approval. To repay a small amount is easy task, after complete repayment, a sense of trust will arise towards your account that will increase your credit score.
- Reconstruct the amount of your previous loan:- Many of the time bad credit arose due to unsecured debt presence. If you find it difficult to pay off your outstanding debt, you should contact your bank to manage your instalment according to your ability. This will increase the duration of repayment and decrease overload from your head. Once, you start repayment in a regular manner then this will allow your credit score to recover which ultimately results in your easy loan approval.
Go to seek a loan from:
- Non-banking financial institution:- Widen your pool of options to get a loan with a bad credit score. Singapore personal loan with bad credit can be achieved by approaching non-banking financial institutions. They also need credit rating, but they manage it by charging huge interest rates from the borrower.
- Choose moneylenders as your last option:- Taking a personal loan from a moneylender is not a good option, because they charge a huge amount of interest which can be above 4% per month. In critical situation, this could be an option that you could opt to take the loan. But before taking a loan from moneylenders, search for a reliable one. Many money lenders are licensed by the Singapore regulatory body, and they provide loan at 1% interest rate and does not charge any early repayment penalties.
Singapore personal loan with a bad credit score is not a simple task but by following these things you can get personal loans in Singapore with a bad credit score also.