TYPES OF PERSONAL LOANS

There are various reasons why people taking out personal loans. Whether you are planning a wedding, furnishing a new home, dream vacation bucket list, medical treatment, powering up your smalls business and paying for education, getting your financial life on track, most of this goals require money. With some sound of planning, there are ways a personal loan can help you achieve these dreams and much more.

It is easy to get a personal loan since many lenders offer an attractive package and flexible paying terms with low-interest rates.

The following are some key tips for choosing a personal loan:

  • Know your credit history before applying for the loan
  • Plan your budget beforehand
  • Decide only the amount you need and not in excess
  • Check out the interest rate and flexible paying terms on the loan
  • Understand all charges associated with the loan such as prepayment penalty etc.
  • Be careful about the risks involved, in case of secured loans

 

  • Medical

Paying your medical expenses for being diagnosed with a terminal condition, need for medical attention and treatment or operation this may not always happen by choice. And you need to be able to cover the cost in the time since you might not be prepared for the final hospital expenses and even having a healthcare is very limited. A personal loan can help you to obtain the treatment and another additional cost so that you can focus on your recovery.

  • Powering up a business

In case you are the owner looking to expand your current operations and get the equipment you need that can help to power up your business to be more productive, a personal loan in the form of a business loan might be a good way to help you get things sorted out in a short order.

  • Holiday Adventure/ Travel Vacation

Going on the trip of a lifetime is one emerging fun for most young people to experience and explore the world but, unfortunately, it’s not easy to do this while paying your bills and rent. A personal loan can turn your dream holiday into reality. Also, can help you take advantage, you can ahead of affordable airfares and make that trip of a lifetime.

 

  • Wedding

Paying for your big day to be a day to remember. A wedding day is an auspicious occasion in one’s life. Couples always wishes have a perfect wedding plan, a radiant venue with a lavish variety of food can prove quite expensive. A personal loan is one of best option can help young couples to overcome their financial hurdles for their dream wedding.

  • Home renovations

Our home is one of the important part of our life and something you can invest in and enjoy for a long time. Thinking taking advantage of a home improvement and creating a space for the home office to run your own business can add joy and boost your property value. Using personals loan for home renovations can be a smart way to help you.

  • Debt consolidation

If you having a hard time to keep on track to manage your multiple debts can be tricky. Consolidating all of your debts into a single loan is a right way. A personal loan used for debt consolidation purposes can help you repay what you owe more efficiently  

 

 

What Are The Costs of Bad Credit

Bad credit has no particular range. It is a matter of viewpoints that vary from each moneylender. It may one of the moneylenders consider your credit score as poor while others will put you in the range of subprime.

By way of maxing out your credit cards and ignoring your bills, it would not dawn on you that your credit might be affected. The timeliness of your credit card payments and the amount you’re carrying would have the biggest impact on your credit score. Your credit score will plummet if you mess up in these areas.

Having a bad credit score, your loan application might be decline or your lender will provide a lower amount of loan. If for instance, you need a certain amount of cash for your house improvement, business, studies or health issues, you may not be able to have.

Here are some of the most common costs of bad credit.

  • Credit card and loans

The worse your credit, the more trouble you might have qualifying for new credit cards. It means having a low credit indicates you’re a riskier borrower than someone with a better credit score. Creditors and lenders make you pay for this risk on conditioned to that by charging you a higher interest rate if you’re approved for a bad credit score.

  • Difficulty purchasing a car

Lenders and banks check your credit history before giving you a car loan. If you have a bad credit, you might be declined a car loan altogether. If you’re approved you’ll likely have a high-interest rate.

  • The difficulty of starting a business

Lots of new business need loans to help the fund of their start-up. Unfortunately, If you have bad credit can limit the amount you’re able to borrow to start a new business, even if you have a solid business plan and supporting files for your business success.

  • Security deposits on utilities

Utility companies (electricity, water, phone) – will check your credit as part of the application process. If you’re dealing with bad credit, as utility companies will most often require a security deposit first before to establish service in your name, even if you’ve always paid your utility bills on time.

  • Home Loans.

If you have bad credit can easily prevent you from getting a home loan. If you do qualify, your interest rates will definitely higher.

 

 

 

 

In What Ways To Keep A Good Credit?

A credit score is primarily based on your credit report information which typically sourced from credit bureaus. It also represents the creditworthiness of an individual if you seriously delinquent on your credit obligations in the 24 months scoring.

Lenders used credit scores to determine the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Also, to evaluate if the borrowers if qualify for a loan, at what interest rate, and what credit limits.

 

  • Limit your applications for new credit

Attempt making multiple loan applications will be labelled as a credit hungry for cash. If you badly need a cash go to various lenders to get a loan, and this will look as bad for future potentials lenders as they can also check your enquiries in your credit history. For those who really have to do a couple of loan applications, have an interval. Avoid getting a house loan and another personal loan if in case you realize you need more cash for down payment.  You can acquire your home down payment from Central Provident Fund (CPF)  while if you would like to get a Housing and Development Board (HBD) flat, then use a personal loan to pay other costs as personal are more flexible than house loan.

  • Pay your statement diligently

Avoid ignoring your moneylender’s letters to remind you of your payment. One way to ensure your payments are on time is to set up auto-payments or set up electronic reminders. Lenders typically look for a proven track record of timely payments. When you have short come for the scheduled of payment, instead of hiding and defaulting you can tell them ahead of time.

  • Take a small loan and repay

Even you have a bad crediting, one way to repair it is by taking a small loan and repaying straight diligently. It would take some time, perhaps a year or two, yet it will help in the long run and you will be able to get a higher loan. You will possibly get a loan at S$500 without worrying about your credit score, though you will expect most lenders to give a higher interest rate.

  • Don’t default your loans regardless of the amount

Failure to repay your loans, you might not be able to get another loan anymore. It would be impossible to get a home, car or student loan. If they had been found out you with a spiraling debt and you think it might be impossible to pay all your loans, you can have your debt consolidated and get in touch with the credit counsellor.