Most of the time, you will get discouraged when you think that you have a bad credit score. There are times when you need to get a loan and is just too scared to discover that you have a bad credit score from the past years or months. However, there are still money lenders that can provide you with loan packages even if you do not have a good credit record. You will just need to have them review your application and check whatever it is that they can offer you. There is always no harm in trying.
There are times when you will need to apply for a loan because of an emergency expense that you need to pay immediately. You figure out that you have a bad credit record due to the past financial hardships that you encounter. There is still hope that you can get a fast cash loan Singapore, you just need to take your chances.
Here are 2 main ways on how to get a loan.
- Try to get a smaller amount for your loan.
Bad credit score rating may additionally save you from getting a huge amount of loan from a bank or a money lender. This is due to the fact that a poor score may additionally suggest your inability to payback your loan. Therefore, if you are having trouble getting your loan approved, try to improve your credit records first. This can be done by applying for a smaller amount of loan. If you will be granted the loan, make certain you do not leave out any payments schedules for you to get a good credit record. The concept is to show that you are capable of keeping up with a prescribed repayment schedule.
- Look for other money lenders besides the bank
You can increase your chances of having an approved loan when you widen your options. Aside from the banks, attempt drawing near other financial institutions or companies that can provide you with what you need. Make sure that these financial companies are registered with the Monetary Authority of Singapore and that they can provide a number of loan packages that could fit whatever it is that you need.
Here are the Common Mistakes that Result in Bad Credit Scores
- A lot of credit accounts are open
- The higher money you presently owe, the more serious your credit score will be because various accounts matters too. If ever you don’t owe that much but you still owe small quantities all throughout a number of credit cards, bills or unpaid loans, your credit grade will be negatively impacted. This is the main reason why you should not keep it scattered because it will impact your credit grade highly.
- Multiple loan applications in just a short span of time
- Do not make multiple loan applications because they will run a credit on your name and that impacts your credit score as well. Make sure that you are sure with the amount and the money lender that you will apply to before having them run your credit rating.
- Late payments
- If you paid your bills late, that will automatically impact your credit score, especially if it is months after. Companies usually give leniency when it comes to late payments. They can give you a certain period of time before they record that your payment is bad. Make sure to always contact the company whether you think you will be late in paying to give them a heads up and consider your late payment.
- Bankruptcy and legal actions
- If you have filed for bankruptcy or in some legal issues, you can still get loans for a small amount because they will not run a credit on your name.
Bad credit scores can impact you the most especially when you are in need of cash and wants to apply for a loan but you are only allowed to get a small amount than what you need. There are some ways to keep your credit score in good condition the next time and here are some of the ways.
- Repay your loans on time. Be sure to handle your finances well. It is your responsibility to pay on time whether your bills or the loans that you have. Paying on time will keep your credit rating on track so that you will never be in trouble by the time you will need to get a loan again.
- Only get a loan that you need. Make sure that you can easily repay the loan that you got. You should never take a loan that is more than what you can pay for. Do not let yourself be in too much debt that you will have a difficult time to pay.
- Be responsible enough to keep in mind that there are things that you should pay for. Keep a reminder about your financial obligations. Never let a credit default on you.
- Do not overspend. Use your credit cards with just the amount of money that you can pay. Do not go on a shopping spree and then end up not having to pay for all your credit card bills. Be responsible enough when spending. Spend only on things that are necessary and not for some luxury that you just want.
- Do not use multiple credit cards. This will make it even harder for you to handle your finances, especially if you do not know what to pay first. Settle for one or just two credit cards to use. Having multiple credit cards will only tempt you to spend more than what you really need.
- Consolidate your bills and loan repayments. Budget your money ahead of time and make sure to priorities the payments before shopping or buying any other things that you just want.