Just like credit cards, getting loan from licensed moneylenders in Singapore do get a bad reputation at times but if you know how to use them, it can benefit you greatly when you are strapped for cash. Weddings, a nice vacation, or even refinancing a home, are a few of the many reasons people take out personal loan or payday loan, but when does it really make sense to apply for a loan with a licensed moneylender in Singapore? When you are tight for cash, and need money to get you out of trouble. Below are a few of the situations in which you are going to find a money loan the ideal solution for your situation, if you have no other means to get out of financial distress.
Furthering your studies is something which will benefit you down the road; a money loan is a simple solution to pay for those benefits right now. With pay increases, and more job opportunities, the payoff is almost instant upon completing your studies. And, you can easily split those payment installments up into a term of up to 7 years with many lenders, which will make the repayment something you can actually handle when you borrow the cash loan. If you choose to apply for the loan to further your studies, consider going with a lender which allows for longer repayment tenure; this is obviously going to make those repayments more manageable for you.
2. Debt management plan
A second scenario in which you should consider apply for loans with a licensed moneylender is when you are trying to manage other debts. The amount which accumulates over time with credit cards, home mortgages, and other expenses, becomes an amount you can’t pay each month. The fixed rates are typically cheaper than the 25% p.a fixed rates, you usually have longer periods of time to repay these loans, and it will make those monthly payments on other accounts, far more manageable for you as well. But, bear in mind you have to make your monthly payments on time, and if possible, you should try to make more than the minimum each month when you can do so. This will lessen your financial burden, and it will allow you to manage all of your debts at once, when you are trying to get out of debt in less time.
3. Increase your credit score
Believe it or not, getting a payday loan can increase your credit score… this is of course if you do things properly when you take out this loan. Payment history will affect up to 35% of your credit score; if you are paying your loan on time, and more than the minimum each month, this will help your score go up. So, whether you plan on buying a new car, or taking out a mortgage to buy a home, this will help your score increase gradually prior to applying for additional loans. A monthly money loan will not only have reasonable interest payments, but will also give you one additional monthly payment on your credit report, which means you are utilizing credit, without over-utilizing all open accounts. This over time, will help to raise your score gradually, which will have a positive impact when the time comes for you to make those bigger purchases you plan on making down the road.