You have decided to go to a licensed moneylender in Singapore to take out a loan; you are ready to buy a new TV or go on a vacation. But, you might not be making a wise choice; not only in the type of loan, but also in the lender, or the ways in which you are choosing to use the funds you are borrowing. When you go to a licensed moneylender, you do have a few ways in which you can borrow. And, depending on the money you want to use,and the manner you wish to use it, there are some types of loans which are superior to others for that type of spending. So, for you, as a borrower you have to find out what the right loan options are and how to go about spending those loans. Consider a few of these loans, in order to ensure you are making the right moves, when the time comes for you to take out a cash loan with a licensed moneylender Singapore as a borrower.
This is a great choice to repay many debts. If you have a few credit cards, other loans, and student loans, or other high debt amounts, this is a viable solution. You are going to bring all of these loans to one single consolidated lender; you are then going to make one single payment, rather than paying each of the creditors monthly. In addition to the single monthly payment being lower, you are going to learn most of the creditors will reduce total debt you owe them. So, you pay it off in less time, and you end up paying less than what you actually owe to your creditors when you choose to consolidate all of the loans you currently have, to one single consolidated lender.
Improving the home -
Renovation loans, a type of personal loan, is a great route to go in this case. This is known as a “good type of debt”; since you are bettering the home and increasing the value, you are not spending foolishly. In addition to finding a few lenders that offer this type of personal loan, you can borrow quite a bit with this type of loan, as renovation is typically not very cheap. So, you can stretch out the loan, you can do more work to the home, and you can increase the equity in the home as well. If you choose to turn around and resell the home, you can easily gain the value of the loan in resale value, and you can go ahead and repay the loan you took out immediately as well as a borrower.
Study loans and personal loans are the right choice to turn to here. Interest rates on this type of loan is very low; so you are mainly going to repay the principle as long as you take out the right loan category. In addition to these, you also have the government grants; if you do qualify for these, you are not going to have to repay them at all. So, you can take out more, you can stretch out the cash you are going to use to pay for your schooling, and you can end up paying less in total, when you do choose to use these loans for your schooling. It is still smart to compare lenders, as you can find lower interset, and better repayment terms, with some lenders, based on the type of and location of the school you are going to be attending when you are ready to return to school.
Avoid personal loans -
So, you know when to use the personal loan, when should you avoid it? For something like a wedding. Not only are lenders going to hike up the interest, you are going to find that you are often limited, as this is not an “essential” expense. So, the lenders are less likely to lend you as much as you would like to take out when you are planning for your wedding festivities and the honeymoon. In such cases, you should compare other types of loan categories to find one that will offer more, at a lower interest rate to you as a borrower.
Medical expenses are another category to avoid the personal loan with. You can often work out to make payment arrangements with the doctor or hospital directly. In addition to avoiding interest rates doing this, you are also going to pay a very low amount each month, so why would you opt to pay high interest rates with a personal loan? There is simply no reason to do so as a borrower when you have had medical work done, and you do not have the funds readily available to pay directly at the time you had the medical care performed.
Purchasing a car you also want to work with the dealership directly rather than go to a personal loan lender. The reason being is you can find rates as low as 3% with dealers; with a lender you are going to pay far more. Especially if you have cash to put down when you are buying the car, and you have a reasonable credit score as a borrower, you will find that there are many great ways you can borrow, with the dealer directly, when the time comes for you to pay for and to finance the purchase of the vehicle you are going to purchase.
When it comes to personal loan, there are a few ways in which you can utilise them, and some ways you are going to want to avoid the; especially in areas where you can avoid taking out a loan entirely, such as repaying medical debts or hospital bills for costly medical work you have had performed. So, when the time comes for you to finance these purchases, or others you are considering, make sure you ask the right questions, and you know what the right type of loan categories are for you to take out as a borrower.