There is that time you really need money to do something or solve a problem. It could be a personal or family issue, it could be you want to start or improve your business and you don’t have money. At that time, all you need is someone to help you with money to handle your issues. Some issues can be serious hence need a quick fix. You might know an institution that can lend you money, but there is a problem… Your credit score is not a good one! This means you will have difficulties in getting a personal loan to handle pressing issues. But you need the money anyway. This article will help you on what to do to get a loan in Singapore if you are having a bad credit. Here are ways you can follow to get the financing you want. You will have personal loan Singapore bad credit.
Request a loan from Non-bank Financial Institution.
Chances are, banks might not give you the loan you are requesting. Simply because your credit score is in bad shape, making banks wary of giving you a loan. But this should not limit you. Widen your scope, look for other options in the market to give you the money you need. Non-banking financial institutions might be willing to give you the loan you want. They, also, rely on your credit history because they are giving you an unsecured loan. But first, make sure the financial institution is registered with the Monetary Authority of Singapore. Another important thing to note is, this non-bank financial institution give loan with higher interest rates than banks.
Work on Your Outstanding Debts.
Another way of getting a personal loan in Singapore when having a bad credit quickly is to handle your debts. The first thing you can do is find a way of dealing with your existing debts. You can visit the bank and devise a strategy of restructuring your debts then work on a formula of which you will use to pay the loan. A way of reducing the interest rate that is charged on the amount you currently owe will work well. Also, negotiate for elongating your payment period. This could also help reduce the amount you need to pay per month. Make progress in clearing your debt and amend your credit history by making regular payments on time and in full. Your credit will have recovered enough money for your bank, hence making the bank to approve your loan.
Appeal for Co-signing a Loan.
This is a bet. You can appeal to your bank to allow you to get someone to co-sign a loan with you. This depends on the severity of your credit history. It could either be your spouse or a close friend. But…their credit score history should immensely outshine yours. It’s not a guarantee, but hey, there is no harm in trying. This is also another way of trying to get a personal loan in Singapore with a bad credit.
Get a Loan with a Cash Deposit.
You can improve your chances of getting a personal loan in Singapore by securing the loan with a cash deposit. The amount of the deposit though is directly relative to the severity of your bad credit. The higher amount of money you owed, the higher the deposit and the higher interest it will be as a consequence. If you get banks with this option, it’s likely to be the quickest and easy way to secure a loan on a bad credit, but in return, it will be the most expensive. So, think twice first.
Apply for a Smaller Loan Amount.
When you want to apply for a personal loan in Singapore and your credit history is bad, it’s always advisable to go and talk to the bank. Your poor credit score may prevent you from getting a loan because it shows your inability to service your loans in time. But you can try improving your credit first. This can be done by applying for a smaller loan first. Once you have been given the loan, organize yourself and ensure you pay it in full and on time. Devise a strategy of paying it, by making sure you don’t miss to not only pay but paying in time. Once you do this, you would have demonstrated to the banks that you can repay your loan well. Borrow small amounts while repaying them in time to win trust and confidence with the bank before applying for a higher loan.
If you live in Singapore and you want a loan, chances are you might not get it if your credit history is bad. But as we have shown above, you can get your personal loan in Singapore even if you got a bad credit by using one or more of the above ways. Some ways can be costly in repaying loans because of higher interests as in the case of considering other non-bank financial institutions. So you have to make a wise decision. But in the end, have confidence that you can get a personal loan even with bad credit.