Getting a Loan in Singapore – What happens when you have Bed Credit standings?
NO ONE WILL GIVE YOU A LOAN!! In the event that you have bad credit standings. In fact, you will find it harder than anything in the world to borrow any money from anyone if you have defaulted any payments in the past. But does that mean you are DOOMED for life? That you will no longer be able to get a loan in Singapore, EVER?
Know the process, then beat it!
At this point, it is assumed that you already have a bad credit history. It can be a minor one where you might have made late payments occasionally or a major one where you have already missed a few payments and are going from month to month making up the lost payments. Whatever it is, before you can get any loan, the bank (or any financial institution) will scan your credit history. Your credit report would provide all the information the lender needs. A black mark can be in your credit report and it can come from the smallest of reasons, like paying late for your credit card. It is then up to the officer of the bank to judge if lending you the money is a big or small risk. But then again, a negative impression will always hinge above your standings and it will always drag you down when you want to apply for a loan. So, is there a way around it? We teach you how!
Find avenues to discuss and complete the process
At the end of the day, the approval (or rejection) for your loan application comes from the judgment of the officer. Once your credit report is extracted, the person looking into your report will have to make a decision. If you are able to speak to someone (like a loan officer or a bank teller) and explain why you have a bad credit history, there could be a reprise. This means that if the person in charge empathizes and understands your reasoning, then your loan might be approved. After all, your late credit card payment could be due to unforeseen circumstances. You just need to explain it in person. One of the more effective ways is to get your loan from a registered money lender. This is where you get the chance to sit down and talk before proceeding.
Secured Loans – Guaranteeing a Guarantee
Your bad credit rating is one thing, but if you have some form to guarantee your repayment, perhaps the lender might be more receptive. After all, borrowing you the money is all about knowing you are able to repay back. The lender will be more than happy to entertain you if you have something to back up your application. For instance, if you have valuable jewelry, title deeds, share certificates or more commonly, properties. When your application has the backing of some form of asset (which value possibly more or equal to the amount you are borrowing), then your application might just get through. As the name implies, it is about giving some form of security.
Surety Loan – Get the help of Friends or Families
A surety loan will be your next option if you do not have anything to guarantee. Instead, you can get someone to be your guarantor. A friend or a family member could guarantee you that you can repay the loan. This person (or party) would be someone with good (or excellent) credit history. In other words, if you fail to repay the loan, the guarantor will have to bear the commitment. It is never easy to find someone to be your guarantor even if they are your family member. In most cases, they need to know what they are signing for. If the amount is not too much, it should be fine but if you are borrowing a large amount of money, it might be hard to convince them to become your guarantor.
Bad Credit History does not mean an ultimate end!
At the end of the day, having a bad credit history does not mean it is the end of the road for you. Besides, no one chooses to have a negative impression on the records. There are situations when the bank would listen and discuss with you but they are commonly bound by policies. Many moneylenders, however, are ready to help and have a conversation with you. You just need to let them understand your situation and to convince them that you are able to repay the loan.