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Things to Know Before Applying for a Loan

Categories :Singapore News
Applying for a Loan

Applying for a Loan

There are times when our salary isn’t enough to sustain our necessities, may it be because of personal emergencies or failed investments. In times of financial crisis, applying for a loan seems like a common redemption that most people choose. Well, as much as you want to suppress yourself from getting a loan but when the situation calls for it, it pays to be prepared and knows how the system works, right?

In this article, I would like to focus on the things that you ought to know before you even consider applying for a loan.

The Purpose of the Loan

The purpose of your loan plays a significant role in choosing the type of loan that you should apply. Is it to pay for a house? Then, a home loan would be suitable. Perhaps, you want to start a small business? Then, a business loan might be ideal. You see, not all loans are similar. Each type of loan has its pros and cons that you need weigh before landing a final decision.

The Credit Score

Next to purpose, you should consider your credit score as well. Do you have a high credit score or a low one? Before you even get in touch with a lending company, you should clean you credit first. Pay your impending debts, clear any anomaly in your credit report, and make sure you’ve had an impressive payment record for the last 6 months or more.

This is particularly important as most lending companies would check your credit score before granting you the loan. So, to increase your chance of being awarded, you need to impress the lender through your outstanding credit score.

The Interest Rate

Try to be keen on calculating the interest rate of the loan that you plan to apply. It would also be great if you can have an assurance that there are no hidden charges once you apply for a loan. So, always check the lending company’s or bank’s terms of services. Avoid those loans that offer insane interest rate; these will cost you an arm and a leg in the long run. For an average personal, any interest above 10% is already high, so stay away from them.

The Penalty

Check the penalties that you may receive if you happen to violate any term from the contract. This way, you can do your best to avoid any grave penalties. Also, always pay your credit on time. Paying it late will only cause additional charges on your part, thus, doubling your credit in the process.

Some lending company/bank are very cunning and skip the terms of penalties to their clients. This is a marketing tactic to get more money out from your pocket. Hence, always research, double check, and follow the contract above all.

The Lending Company/Bank

Lastly, after you have shortlisted some candidates through the guidelines mentioned above, you can now focus on selecting the best company or bank to apply for. Make sure you understand the company’s or bank’s loan policy before signing any contract. Do not be naive and ask questions if you feel like you need clarifications. A good lending company would be more than happy to answer your questions and even help you choose the best loan plan that suits your needs.

 

Best Credit SG Pte Ltd – Cing Dien Credit

Cing Dien Credit has since rebranded and is now known as Best Credit SG Pte Ltd. 1985 was the year we open our office doors to help people in need of money. Throughout the years we have service many different people, Singaporeans, Permanent Residents and Foreigners. Being a license money lender for more than 30 years, you can be absolutely certain that we know what we are doing.

Other than providing personal loans to individuals, we also help businesses in need of cash. Businesses can also run into minor cash flow problems. When that happens, you can count on us to help you! We will be able to provide you a loan fast so that you will be able to settle your problems as soon as possible.

Whatever reason you need a loan, look for us! We strive to be the best money lender available in Singapore.

Our office is located at Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372. The closest MRT to our office is Bukit Gombak. If you have never taken a loan with licensed money lenders before, please drop by our office. We will do our best to help you, drop by any time between Monday to Friday 11AM – 8PM, Saturday to Sunday 12PM – 5PM. You can also contact us at +65 6272 5538. The staff at Best Credit SG Pte Ltd will be able to come up with the best loan deal for you!