A debt, or loan, when used correctly, can help you in many ways. You may need it to scale your business, get your child a quality education, buy a dream home, improve your quality of life, or invest in a lucrative business opportunity. Credit Company
However, borrowing money from a credit company in Singapore is not a routine task for anyone. The process may feel daunting to several people.
In this blog, we guide you through the process of taking a loan from a credit company.
8 Tips to Take a Loan from a Credit Company Singapore?
1. Assess the Numbers
A loan can be a helpful resource in times of need. However, you should only borrow the amount you are financially capable of paying back, along with the interest. The last thing you want is to create more financial stress while paying the money back.
The credit company in Singapore will do its due diligence to assess your financial profile before providing you with a loan. However, you should adopt a proactive approach and run your numbers before reaching out to the lenders.
Determine how much money you need, including the expenses involved in the process of obtaining a loan. Get a ground idea of market rates and repayment terms of financing companies. You can use a personal calculator to find out your monthly payments. Getting an idea of what your financial budget will look like after the loan will help you plan your finances.
2. Check Your Credit Score
There are a few criteria that many lenders look at to determine your interest rate offer. One of them is your credit score.
Your credit score depicts a consumer’s creditworthiness. It is a number between 300-850 and is based on your credit history: number of open accounts, total levels of debt, repayment history, and other factors. A good credit score can qualify you for a personal loan at a lower interest rate. The higher your credit score is, the more are the chances of you getting a loan at a competitive interest rate. A low credit score minimizes your chances of approving a loan.
Your credit company Singapore will run a credit check to determine your financial standing; you might as well do it too and make improvements when there is a chance.
3. Choose Your Loan Type
There are various kinds of credits — each of them offering different benefits and risks. You need to determine which kind of credit option is best for your situation and benefits you the most.
Some credit companies in Singapore provide flexibility in terms of how you use the loan. However, others approve loan applications only for specific purposes. Be clear about what you need and find a lender that owes you money for the exact reason you need it.
At Oasis Credit, we offer the following kinds of loans –
- Personal Loan– Be it a financial crisis or an immediate family need, personal loans can help you deal with your finances. We also provide wedding loans and holiday package loans.
- Business Loan– Money makes money. We provide SME loans, business financing, and entrepreneurship loans to help you grow and scale your businesses.
4. Explore Licensed Moneylenders
Now that you have understood your options, it’s time to get into the pool and explore credit companies in Singapore.
Before you begin your research, you should know that there are two kinds of moneylenders operating in the market — licensed and unlicensed. Unlicensed moneylenders are illegal and are known as loan sharks. They have sky-high interest rates and practice harassment tactics. You should always reach out to licensed moneylenders. While they have restrictions in terms of how much amount they can lend you, they are also bound by the fees and interest rates they can charge. Moreover, the Registry of Moneylenders governs them and their practices to safeguard the borrowers.
Stay wary of unlicensed moneylenders while browsing, as taking a loan from them is against the law. To know if your moneylender is licensed or not, check the Ministry of Law’s website and find the list of licensed and unsuspended moneylenders.
5. Compare the Offers
Once you explore the credit companies, talk to the ones that look suitable for approving your credit. However, you should not settle for the first offer that you receive. To get the best offer at the least interest rate, you need to compare several lenders. Hence, take some time and shop around for the best possible interest rate.
A few lenders also offer a prequalification process with a soft credit check. It is beneficial for the borrower as it doesn’t impact your credit score. Speak to your lenders to see if they allow you to get prequalified and get a full understanding of the rates available to you.
6. Pick a Lender and Apply for a Loan
After shortlisting a couple of credit companies in Singapore, pick a lender that provides the best offer for your financial needs. Once you do so, it’s time to begin the application process.
The application process varies from lender to lender. While some may get the whole process done online, others require you to apply in person. A few credit companies also provide a hybrid model where you get to choose if you wish to complete the application process offline or online.
The company will ask you to provide basic information, including your name, address and contact information, your income and employment information, and the reason for the loan. Furthermore, you will need to submit your documents as proof of information.
7. Accept the Loan
Once you have completed the formalities, the lender will notify you of your application in a few days. After the notification, you’ll need to finalize the loan documents and accept the terms.
Before you sign off the loan agreement, review the complete terms and conditions for the loan, including fees and your repayment period. Ensure there are no hidden fees or other pitfalls.
Having a complete understanding of the process of borrowing money is essential to ensure you make no mistakes. We hope our guide helped you in doing so.
To find the most competitive loan rates, visit Oasis Credit, a licensed credit company in Singapore. We offer the finest loan package according to your budget and needs. Give us a call at +65 6777 1121 to get your loan today.