Do Money Lenders Offer Loans With No Credit Check?
The big question: Do money lenders offer loans with no credit check? The short answer is no, but that doesn’t automatically rule you out as a candidate for a loan. Having a bad credit score can hurt your loan applications especially when you are applying for one from a bank. Unfortunately, there’s little you can do within a short period to erase those bad credit records. However, if you need money urgently, there are alternative sources of finance you can consider. Here are several ways to get the money you need, legally, without going down the illegal money lender route. 1. Consider going to licensed money lenders Most people may frown upon the word “money lender”, equating them to the illegal ones whom you often see on TV and confusing them with loan sharks. In Singapore, licensed money lenders are licensed and regulated by the Ministry of Law; they are required to abide by strict criteria if they want to stay in the business of moneylending. Do licensed money lenders offer loans with no credit check? No, they do not. Licensed money lenders are expected to do their due diligence and assess your creditworthiness before extending any credit facility to […]
Do Licensed Money Lenders Offer Debt Consolidation Plans?
Is a debt consolidation plan available at every money lender? What is a debt consolidation plan and how does it work? Can I still borrow money if I have multiple existing debts? Do licensed money lenders offer debt consolidation plans? If you find yourself wondering about such questions, you have come to the right place. In this article, we share things about debt consolidation plans that most people don’t know or are confused about. For starters, debt consolidation plans and debt consolidation loans aren’t entirely the same. What is a debt consolidation plan and how does it work? A debt consolidation plan (DCP) is a simple debt management scheme that allows you to combine your existing multiple unsecured debts into a single debt. First announced by the Association of Banks in Singapore (ABS) in 2017, a debt consolidation plan is designed specifically to help Singaporeans and Permanent Residents who are struggling to pay off multiple unsecured debts better manage their debts. How does a debt consolidation plan work? This loan facility is designed to pay off all your eligible unsecured loans such as credit cards, personal loans, and credit lines, but not certain needs-based unsecured loans such as renovation loans, […]
Do Money Lenders Offer Loans To Foreigners In Singapore?
Singapore has a large expatriate population that contributes to the nation’s unique multicultural character. The financial needs of this large group have led to the growth of a flourishing foreigner loan industry. It is no wonder that licensed money lenders are also offering loans for foreigners in Singapore; banks aren’t the only option. As it stands, most foreigners will find it easier to obtain a loan from private money lenders instead of traditional banks — the latter has more red tape, the strict credit assessment, and much higher income requirements. This article explains the essentials of a foreigner loan in Singapore, including the documents you need to apply, what to avoid, and how to keep your personal information and finances safe. Who can apply for a foreigner loan in Singapore? A foreigner loan in Singapore is exclusively for legal residents of Singapore who are not citizens or permanent residents. Tourists and other foreigners transiting through Singapore are not eligible. All adult foreigners who reside in Singapore for work or as legal dependents are eligible to get loans from the banks — provided they meet the income requirements and are assessed to be suitable candidates for a loan. Licensed money lenders in […]
7 Ways To Spot Legal Lenders From Illegal Money Lenders (SG)
At some point in your life, you may face situations where you need urgent cash or a fast loan. During such circumstances, you may resort to taking a loan from a money lender instead of a bank due to various reasons. The great thing about taking a private, legal loan in Singapore is you’re protected in the eyes of the law. Licensed money lenders here have specific rules to follow if they want to remain in business. The rules also help to protect borrowers against illegal money lenders in Singapore who charge exorbitant interest rates and those who could use unnecessary violence or scare tactics when collecting debts. Borrowers need to know the differences between a licensed money lender and a loan shark so they do not get scammed or put themselves in danger. Let’s understand this: How do private money lenders work? Compared to banks, licensed money lenders have less stringent requirements when it comes to loaning money. Sometimes, they also provide more flexible repayment modes or schedules. Private money lenders are especially popular when people are looking for short-term cash loans or payday loans in Singapore. But it’s also in these moments of urgency that many fall prey to […]
How To Choose A Reliable Licensed Money Lender In Singapore
Taking out a loan can be a useful way to deal with large or unexpected costs, but it’s important to be aware of common traps and how you can avoid them to protect yourself and your family. For starters, there are plenty of licensed money lenders that offer legal loans in Singapore. On the flip side, there are also many illegal money lenders in the Lion City. While the moneylending industry is regulated in Singapore to prevent the exploitation of vulnerable borrowers, knowing how to compare money lenders and choose the right licensed money lender will put you in the best position to repay your loan without any undue stress or financial strain. To choose a reliable licensed money lender in Singapore, you have to: Know the difference between licensed and unlicensed money lenders Learn to check for the legitimacy of your money lender Know where to find legal money lenders in Singapore Know the criteria to qualify for legal loans Ask your money lender the right questions Compare legal loan offers from several licensed money lenders The difference between licensed and unlicensed money lenders First and foremost, you should only ever borrow from a licensed money lender. Who needs a […]
Personal Loan: Differences Between Banks And Money Lenders
Licensed money lenders often face a stigma from borrowers – some people may view them with suspicion, and wrongly associate them with illegal money lenders or loan sharks. Licensed money lenders in Singapore are actually very well-regulated and have a strict set of rules to follow regarding who they can lend to, how much interest they can charge, the types of fees they can charge, etc. You must be thinking, “If I can borrow from a bank, why would I go to a money lender?” The fact that they exist justifies that there is demand for their services. It’s common practice for an individual to try applying for a credit card at Bank B if their credit card application at Bank A wasn’t successful. The same logic applies to personal loans or other types of loans. For some people, it’s just harder for them to get their loan fixes at traditional banks and financial institutions. Who can these people turn to for help then? Licensed money lenders in Singapore. There are several key differences between taking a personal loan from a licensed money lender and a bank. Let us take a look before you decide which lender could be more […]
Can Legal Money Lenders in Singapore Compete With Loan Sharks?
Splashes of red paint across someone’s front door. Obscene messages smeared on walls or across a vehicle. Threats, intimidation, and acts of violence. These are not fictitious scenarios but real incidents of loan shark harassment reported in the news, even recently. Welcome to the world of loan sharks in Singapore. Loan sharks, known colloquially as Ah Long, are illegal money lenders. They were a much bigger problem about a decade ago before the government enacted the Moneylenders Act in 2008. Since then, their activities have been suppressed but, unfortunately, not completely eliminated. The Ministry of Law’s Registry of Licensed Moneylenders lists all companies authorised to engage in money lending practices within Singapore. Any individual or company not listed in the linked document that lends money to receive a higher sum in return is considered a loan shark in the eyes of the law. This is because they are not regulated by the provisions against unfair practices and limitations on interest rates designed to protect consumers from exploitation. A licensed money lender on the list that contravenes the set guidelines may be delisted and would be prosecuted. Together, the combination of government regulations and consumer awareness have largely strangled the loan […]
The Best Credit Loan Company May Not Boast The Lowest Rates
While most of us will gear towards the cheapest personal loan in Singapore when we’re narrowing down our loan options, the loan with the lowest interest rate may not necessarily be the best option for every individual. When it comes to choosing a loan provider, it pays to consider a range of factors beyond just interest rates, particularly if you aren’t in the best position to obtain loans from traditional banks. Even though some of the best licensed money lenders in Singapore may not have the lowest rates, it does not mean they should automatically be filtered out of your loan consideration exercise. In fact, for some people, licensed money lenders are their only legal source for getting a loan approved. Factors to consider other than the interest rate #1 Your credit score A credit score is a numerical value that represents an individual’s creditworthiness depending on their credit reports from the credit bureau. In this report, factors such as past loan applications, the performance of existing loans, the total level of debt, and repayment history are examined. These components make a difference when applying for a loan — some lenders, in particular major banks, may not accept your application […]
Finding The Best Money Lender – Does Size Make A Difference?
Since the Singapore government regulated the local moneylending industry, consumers are spoiled with financial choices. There are currently dozens of licensed money lenders in Singapore as well as traditional lending institutions such as banks and credit unions. While the big banks are obviously more established, does that make them the best money lender option for you? That question is not as easy to answer as you might think. In this post, we take a closer look at factors every potential borrower should consider before signing on the dotted line. Size may or may not make a difference when you’re finding the best money lender in Singapore. Where size makes a difference No matter what type of loan you need, many financial institutions are interested in having you as a customer. All the major banks as well as legal money lenders, both big and small offer similar loans. #1 Loan principal The main difference between lenders of different types is the size of the loans they can provide. Big banks regularly approve loans worth hundreds of thousands of dollars. Even the biggest licensed money lenders will not be able to do that. Licensed money lenders typically offer loans ranging from 1 […]
7 Steps To Follow Before Getting A Money Lender’s Loan
In 2014, a businessman borrowed $350,000 from a licensed money lender at an annual interest rate of 240%. Although he managed to pay back twice the amount of the original loan, the man was taken to court by the licensed money lender for failing to pay the entire owed amount. Fortunately, the case was thrown out by the court and the Ministry of Law has since ruled that the maximum interest rates money lenders can charge is 4% per month. The case also highlighted the fact that while you can have alternative options to borrowing from a bank or an illegal money lender, it isn’t necessarily trouble-free. When done correctly, borrowing from a licensed money lender could be a good solution to your cash flow woes. If it’s your first time seeking a loan from one, here are some steps to follow: 1. Check if you’re eligible for financial assistance schemes Apart from asking family and close friends for help to tide you through difficult times, you can try to get help via financial assistance schemes that various Government agencies offer. Reach out to them to learn more about what they can do to help people in need. 2. Know […]
The Ultimate Guide To The Best Loans In Singapore: How To Tell If It’s The Best
There are many avenues where one can get a loan from — family and close friends, major banks, licensed moneylenders in Singapore, traditional loan sharks and even loan sharks that pretend to be licensed moneylenders. In any case, know that the first three options will always be better than the last two if you’re in search of the best loans available. Make sure you look out for the following when determining which loan could ultimately be the best one for you and your needs. Then, compare, compare, compare! Even if you find yourself in need of cash urgently, spend some time and effort to compare before committing to anything to ensure you are getting nothing but the best loan in Singapore. Minimum income requirement Banks usually extend loans to customers who make at least S$30,000 per year. They also have stricter criteria in place that borrowers have to meet, such as a clean credit history with little to no incidents of default. On the contrary, licensed moneylenders in Singapore are much more accessible to borrowers as they typically only require borrowers to have an annual income of at least S$20,000. That’s not all. Going the licensed moneylender route will definitely be easier and quicker […]
Hot tips on getting the lowest renovation loan interest rates
As a first-time homebuyer, landing your dream house is just the first step. Every homeowner will probably have to think of renovating their homes at one point in time. However, this requires a big sum of money and as much as we want to be able to pay for our renovation solely from saved up cash, there are times where we need to resort to a renovation loan. There are two main paths when you apply for a renovation loan and they are through a bank or a moneylender in Singapore. Of course, everyone wants to land the cheapest interest rates but this also depends on your eligibility and each individual’s circumstance. Most importantly, you have to budget your renovation costs depending on the types of reconstruction you’re looking into then you can begin to view your options and decide which renovation loan can get you the best bang for your buck. What you need to know about renovation loans Renovation loans are known to be cheaper than your average personal loan and their interest rates are relatively affordable. First, you need to know the basics of a renovation loan and if they fit into your budget. When you apply […]
Applying for an online loan in Singapore can be intimidating, especially if it is your first time doing so. Whether you are a novice borrower or have applied several times before, the fundamentals of making a good choice are the same. This is a quick guide to getting a private personal loan in Singapore. It shows you what to look for in a good online money lender as well as how to recognise the warning signs of a bad one. We call it the CompareSing C3P checklist. Certification The Singapore Ministry of Law regulates and certifies every legal money lender in the country. That certification is given in the format xx/202x or xxx/202x. Examples are 12/2020 and 345/2021. All licensed money lenders are required to display that certification code on their website and all associated informational and advertising material they produce. On a licensed money lender’s website, you can usually find it on the Home and About pages and/or in the footer of each page. It is often displayed prominently and easy to find. Once you locate this information, cross-check the company details with the complete list on the Ministry of Law website. Note that online scammers occasionally imitate legitimate money lenders with web […]
When it comes to personal loans, there will always be a fine line between their pros and cons. In a bustling metropolis like Singapore with a rising cost of living, the reality is that you may find yourself in need of extra cash for unforeseen circumstances at any point in time. In this case, a personal loan might be a good option for you. In this article, we weigh some pros and cons of a personal loan, and how it could potentially benefit you. Personal loans in a nutshell A personal loan is designed to fund different needs and uses such as medical emergencies, housing loans, renovation loans, vacation loans, and so on. It is usually an unsecured loan, which means you don’t need collateral to secure funds. Its flexibility is what makes it so attractive. When managed responsibly, it can be a great short-term solution to help individuals through a financial crisis or emergency. A personal loan might be right for you if… You are looking for a flexible loan solution A personal loan can be used for a wide variety of reasons. If you are looking for a flexible solution to finance a major purchase or emergency without being […]
How to get a Personal loan with a bad credit score
You’ve probably heard the saying that money can’t bring you happiness. Though to some extent it is true, nonetheless, money is still the means of exchange to buy day-to-day necessities. Without adequate funds, life becomes a struggle, and this eventually results in frustration. To most people, money is the solution to live a normal life where all their needs are met. Thus, people find the necessary means to source money, even if they have to borrow. Looking for places to get urgent cash, whether an online loan or a cash loan, can sometimes be rigorous, and even futile. This is because many organisations or agencies involved in lending out funds are skeptical of the people they lend money to. In contrast to these financial institutions, a personal loan can assist you to cover your pressing expenses if you are in dire need of some cash, or if you’re looking for alternatives to help with your current debt, but hold a bad credit rating. Before we explain whether you can apply for a personal loan with a bad credit score, let’s look at: What is a Personal Loan? A personal loan is an unsecured loan offered to people based on their personal income. It is provided […]
Five Reasons Why Singaporeans Are Borrowing More Frequently
If you’ve lived in Singapore long enough, the alarming reports about skyrocketing consumer credit are nothing new. One finding estimates that one out of every three Singaporeans took out a personal loan in 2020 alone Sure, we’re loosening up to the idea of personal loans, but what’s causing this shift? Have personal loans become cheaper and accessible, or do we lay blame at the door of the exorbitant cost of living? In this article, we explore five reasons why personal loans are becoming rife in Singaporean households. Living in Singapore Residing in this city is getting more expensive by the day. The most obvious reason why locals have doubled their borrowing is to cover basic living expenses. Having topped the charts consistently as the most expensive country to live in, Singapore’s economic outlook is somehow dispiriting. Prices of different goods and services, including education, food, and health care continue to inflate at a steady rate, making it difficult to save any money. To add to that, the pandemic has shaken businesses and jobs, hence we’ve all done some upward adjustments on our budgets. As a result, personal loans have become a necessity to help take the sting out of these bumpy economic […]
Facing bankruptcy? Payday loan consolidation help is just a minute away!
Payday loans are a very convenient financial tool when times are tough. However, they also come with high risks because defaulting on one payday loan can quickly spiral into an avalanche of debt. If you have several outstanding payday loans, you should get payday loan consolidation help as soon as possible. Borrowers who do not take charge of their debts early face the prospect of bankruptcy. In the long term, the stain of bankruptcy will remain on your financial records for many years, and it may make it harder for you to find employment, start a business and or new loans. Former bankrupts are also usually charged high interest and given less favourable loan terms. What is a payday consolidation loan? Payday loans Payday loans are short-term loans capped at borrowers’ one-month salary and have to be repaid in full (with interest) either exactly one month after borrowers receive the loan or by their next payday. Find out more about how payday loans work here. We also illustrate the pros and cons of taking payday loans here and the basics you should consider before applying for one. Payday consolidation loans Some borrowers take multiple payday loans from different lenders […]
What is the difference between secured and unsecured loans?
Are you considering taking a loan? It’s important to know exactly what type of loan is best for you to take. Secured loans and unsecured loans in Singapore are two different types of loans you might come across – both at banks and licensed money lenders. Here, we share with you what they are, how they work and what are the differences, to help you decide which one is more suitable for you. What is a secured loan? Secured loans are loans that require your assets (such as jewelry, home, vehicles that you own, etc) to be pegged as collateral to the loan. Sometimes, it can also be a fixed deposit of money. Taking out a secured loan means that if you default on any of your payments, your loan provider would be able to seize the loan collateral (your asset) and sell it in order to recoup any losses they might have made. Some examples of a secured loan include a home loan, for which you might peg your new home as a collateral to the loan. In fact, even the age-old practice of depositing your jewelry at a pawn shop as security for the money they lend you, […]
Personal Loan Interest Rates: How do lenders calculate them?
Personal loan interest rates may vary depending on who you’re taking a personal loan in Singapore from. And while you may already know the textbook methods to find the lowest personal loan interest rates, rates can only get as low as a lender’s own calculations. Lenders may calculate interest rates based on a few factors. Knowing what these are can help you be prepared to get a realistic idea of how much your loan’s interest rate might look like. And while you’re at it, you can find the best and lowest personal loan Singapore with CompareSing. Read our guide to uncover secret tips and tricks to finding the lowest interest rate personal loan in Singapore! What is interest, and how is interest calculated on a loan? When you borrow from someone, they’re doing you a favour. But when you borrow money from a licensed moneylender, a bank, or any other financial institution, then giving you a loan is also offering you a service. So, interest rate is essentially a service charge that you’re charged for your loan. It’s the price that you pay to borrow money. There are a few ways that interest rates are calculated on a personal loan […]
Differences between a loan for unemployed Singapore residents and employed residents
Whether you are applying for a loan from a bank or a licensed moneylender, your employment status makes a difference. While it is not impossible to get a loan for unemployed Singapore residents, having a job can make it considerably easier to get approval. Here are the main differences between loans for employed and unemployed applicants in Singapore. By understanding the criteria that a bank or licensed money lender uses to evaluate borrowers, you can improve your chances of approval whether you have a job or not. Applying at a bank Banks have a very formal lending process and use very tough loan eligibility criteria. You may be able to secure a bank loan as a casual employee if you can show a steady flow of income over a long period. On the other hand, an application from someone with no income will be rejected straight away. Applying at a licensed money lender Licensed moneylenders have a lower eligibility threshold than banks. They may extend loans to people who have jobs, those who have retired or lost their jobs, and even people who have never been employed. It all depends on the assessment criteria they apply. Some of the factors [...]
Borrowers often assume that getting a loan is the hardest step of their credit journey. In reality, the most difficult part is almost always loan repayment. Whether you manage to get the cheapest personal loan in Singapore from a bank or the best licensed money lender in Singapore, always approach repayment as a serious responsibility. A failure to do so can have long-lasting consequences. Borrowers who default on even a small loan or are consistently late with repayment instalments can expect: - a damaged credit rating that stays on their Credit Report Singapore for years after the error - an uphill battle to get approval for all future loan or credit applications higher interest rates on loans that are eventually approved - higher fees and more severe penalties for late payments and defaults If you spent time and effort to compare money lenders, you should also invest some time in learning the best loan repayment hacks. Loan repayment hacks from industry insiders We spoke to financial experts who have worked in the banking and credit industry for decades. They say that most borrowers can easily repay their loans if they follow some [...]
A Guide To Look For the Lowest Interest Rate Personal Loan in Singapore 2021
As the world recovers from the COVID-19 pandemic, you may be looking for a personal loan to aid with an aspect of your life. You could be looking for some money to tide you through hardship, or perhaps to make a new dream purchase. Either way, you’re likely searching for a loan with the lowest interest rate. Finding a good interest rate can make a world of a difference to your overall loan amount. On personalloanfinder.co, you can find licensed moneylenders that offer the best loan Singapore. But if you’d rather take matters into your own hands, here are some tips to unearth the lowest interest rate. If you’re not too sure where to begin with your personal loan journey, read about the crucial things to know before you borrow money in Singapore. Maintain an exceptional credit score A credit score is a number that reflects your borrowing and credit history to determine how credit-worthy you are. Based on the analysis of your credit score, moneylenders will make a decision on whether they want to lend money to you. They decide this based on their judgment of whether they trust you to return their money to them fully. You can […]
A credit report is always handy to have. Should you need a personal loan, lenders might check your credit report to gauge your creditworthiness. In turn, this helps lenders make faster and less biased decisions about whether they’d like to lend you money or not. If you’re looking for instant cash loans, having a credit report might help you get access to the money that you need sooner. And beyond just loans, your credit report might be used in many other stages of your life. For instance, it may be used to decide whether you can rent a house, get certain insurance plans, and in some companies, assess whether you’re eligible for a job opportunity. While some institutions require that you make payment for your credit report, there are also ways that you can get a free credit report Singapore. Before we tell you how, let’s take a quick look at what a free credit report involves. Firstly, what is a free credit report Singapore? A free credit report is a document that assesses your credit payment history, compiled from a variety of credit providers. Essentially, it contains your credit score that shows how well you’ve been repaying your credit […]
Private Money Lender Singapore: How to spot the legit ones
When borrowing money, borrowing from legal money lenders can make all the difference. Apart from helping you stay protected in the eyes of the law, you’ll also have a higher chance of knowing exactly what you’re signing up for when you borrow from a legal private money lender Singapore. While illegal money lenders might offer you loan packages that seem very attractive, it’s important to keep in mind that these are often too good to be true. But with that said, it might feel difficult to identify whether your lender is legit or not, no matter the type of loan you’re taking. Well, don’t worry. If you feel like you’ve been in greater need of loans these last few months, you’re not alone. Singaporeans have been borrowing more frequently for multiple reasons, so we could all use a little help on the telltale signs of illegitimate money lenders! This article will discuss everything you need to know about finding a legit money lender. Let’s understand this: How do private money lenders work? Compared to banks, money lenders have less stringent requirements when it comes to loaning money. Sometimes, they also provide better interest rates or repayment modes. Private money lenders […]
Does my job matter? Getting a credit loan in Singapore with and without employment.
With the economy and job market as uncertain as it is today, many Singaporeans are unsure about the future. Many who have been laid off or retired recently need loans to set up a business or maintain their lifestyle. This post explores the relationship between loan approval and employment. We touch specifically on getting a credit loan Singapore from a licensed money lender in Singapore. Why does employment matter? A provable steady source of income is one of the biggest advantages you have when applying for a loan. There are four ways in which regular employment helps your case. 1. Credit score All lenders, from every major bank to each licensed money lender in Singapore considers a loan applicant’s credit score. This credit score is a combination of various factors from your recent financial history. That includes repayments on your current credit cards and short term loans, as well as previous debts. Most employed applicants manage to pay back their debts on time and in full. This is reflected in a higher credit score, which makes it more likely that the applicant will get same day loan approval. They may also be eligible for lower interest rates from the best [...]
8 crucial things to know before you borrow money in Singapore
When you’re shopping for a personal loan, it’s likely the first numbers you look towards are the interest rates of various money lenders in Singapore. But there are also some other factors to consider when you borrow money. For starters, you can do a quick self-check to assess how ready you are. Do you know who your loan providers are? And do you know the differences between loan terms, interest, tenure, processing fees, late charges, and maximum loan amount? You might also want to consider whether borrowing is right for you. This might depend on your ability to repay your loan and review your debts regularly. If you’re ready to dive right into taking a loan, read our guide and find the best licensed money lender in Singapore here – The Ultimate Guide To The Best Loans In Singapore: How To Tell If It’s The Best Here’s what else you should watch out for when you borrow money. What’s the interest rate? Interest rates can make all the difference with your loan experience. While there are loans with fixed interest rates, there are also some loans with fluctuating interest rates. These loans might be called floating rate interest loans. For […]
Pre-paying payday loans in Singapore: The Pros and Cons Explained
Most people who take a loan give little thought to repaying it early. We are more concerned about having the money to pay the monthly instalments on time instead. However, no one enjoys being in debt and it can be tempting to prepay a loan if you come into some extra cash. Payday loans are slightly different. They are characteristically very short-term loans and don’t involve repayment by instalments. Instead, the entire loaned amount plus interest is repaid to the lender when the borrower receives their next paycheck. This could be as soon as a week. However, it is still possible to prepay a payday loan from a legal moneylender. The question is whether or not you should. We help you answer that question depending on your personality and your unique circumstances. Pros There are three main reasons that you may prefer to prepay a payday loan. Credit limit Your credit limit is calculated based on the current amount of debt you hold as compared to the maximum allowed for your credit score. The more debt you hold, the smaller your ability to get approval for a new loan, credit card, or overdraft. By clearing some of your debt immediately, […]
Low-interest personal loans are the cheapest source of credit in Singapore. Many individuals turn towards these loaning services every year for various reasons, including debt consolidation, medical emergencies, and spontaneous home renovations. But, how do these loved-up loans truly work? This article looks into the nitty grittiness of low-interest personal loans, including the costs, risks, and benefits of taking one. 1. How do personal loans differ from bank loans? Barely ten years ago, applying and successfully getting a loan was a pain-inducing process. Long lines at banks, bulk documents, tedious trips to the bank, and worst of all, high-interest rates all made the lending market unattractive for small-scale borrowers. Fast forward almost a decade later, and private lenders have changed the ball game. Applying for a low-interest monthly loan in Singapore is as easy as clicking a website, and the rates are subsidised as well. Best described as a form of monthly installment credit that you pay for months, personal loans are versatile enough to be applied to multiple scenarios. They also have lower interest rates than bank loans and credit cards. And finally, you don't have to visit physical institutions like banks to acquire a low-interest personal loan. [...]
The differences between borrowing licensed and unlicensed lenders’ money
Trying to decipher if a lender is licensed or unlicensed can be difficult for anyone new to the subject of personal loans. If you’re in need of an urgent loan in Singapore to fund an endeavour, don’t be in a hurry to sign up with the first online moneylender you come across on the internet. There is a huge difference when borrowing licensed and unlicensed lenders’ money. A wrong move can land you in an unsavoury situation that is not aligned with the law. If you are planning to take up a personal loan, make sure to read on because, in this article, we will help you spot the differences between licensed and unlicensed moneylenders to ensure you’re getting your loan from a legal source. 1. Legal Documentation Before committing to borrow a lender’s money, make sure to ask the company for legal documentation to prove that it is a legit licensed moneylender approved by local authorities. The lender should have a license number that appears in the list of registered moneylenders provided by the Ministry of Law. An unlicensed moneylender would be unwilling to show you any documentation and might attempt to lure you with attractive offers that sound […]
If you love high-end fashion, then you’ll thrive in the jewellery business. Typically, you can choose to run a jewellery store or invest through buying and selling in the gemstones market. However, while this sounds straightforward, many aspiring jewellery sellers get stuck when it comes to funding their jewellery ventures. And this begs the question: Is a licensed moneylender a smart option for seeking starting or working capital? And what are the odds of a jewellery investment yielding returns to pay back a loan? In this article, you’ll find answers to these two important questions and more! Is a jewellery investment worth the risk? The answer is a solid YES! Investing in precious stones or jewellery is the best investment you can make. For one, jewellery is timeless, and secondly, its value increases over time. This makes it safe for investors with a low-risk appetite, compared to other volatile markets like stocks. Even amidst the COVID-19 pandemic, the prices of gold and diamond have shot up significantly. Such high-end gems are known to rake in profit margins of between 25-75%. Secondly, jewellery-focussed businesses are known to kindle and sustain creativity. As a professional jeweller, you’ll have access to different designs [...]
Does credit score matter if you don’t want a loan?
If you are residing in Singapore, it is vital that you keep track of your credit score. At some point, you may suddenly need to take up a private personal loan in Singapore due to unexpected circumstances. The banks and financial institutions will look at your credit score before approving your personal loan application, thus illustrating the importance of credit score ratings in Singapore. Definition of Credit Score A credit score is simply a 4 digit number ranging from 1000-2000 assigned to a credit holder based on the credit report. This score represents the financial health status of a person. A higher number indicates a good credit score. A credit report will list all previous loans, repayment history, and frequency of default payments (if any). This report is available from the Credit Bureau of Singapore (CBS). Factors Affecting your Credit Score The Credit Bureau of Singapore will assess your credit score and provide the banks and financial institutions with a report reflecting your capability to service the loans and the probability of default payments. The following factors are taken into consideration when computing the credit score. Recent credit card/loan application If you have applied for numerous personal loans in Singapore […]
Having an emergency fund to fall back on is always important, especially when you don’t know how hard a rainy day can hit you. Luckily, some financial rules can help you figure how much to save. But knowing exactly how large of a pool you’ll need depends entirely on your circumstances. If you need cash urgently, a money lender in Singapore can help tide you through some difficult times with financial assistance that’s fast, and legal. At CompareSing, we’ll help you find the best licensed money lender. The general rule of thumb for emergency savings You might’ve heard of the popular rule of thumb for how much emergency savings you should have. Most financial consultants and experts recommend that you have 3-6 months of expenses saved for emergencies. That’s a pretty large range. In general, having 3-4 months of your expenses saved might suffice for you if you’re debt-free, have a low cost of living, have a stable job, and have no dependents. Better still, if you’ve got a partner that you might be able to rely on for financial assistance. In certain scenarios, you might need a larger emergency fund. When will you need a larger emergency fund? Certain […]
There are many different ways you can choose to invest. Many investors make it a point to diversify their portfolio overseas to cushion their investments against local risks. But putting your money in places you can’t see also comes with its fair share of uncertainties, including foreign exchange fluctuations, taxes, and policies that you may be unfamiliar with. In this article, we outline some of the major drawbacks and benefits of investing globally to help you understand the key things to take note of before venturing overseas. Spreading out local risks One of the biggest reasons why investors choose to invest overseas is to spread out local risk. Financial investments, especially higher investment types, can fluctuate according to the perceived risk in a country. Changes in governance, interest rates of short term loans, and even natural disasters can affect the value of your investments much quicker than you think. To mitigate such risks, investors often spread out their investments by putting their monies in a few different countries. This way, even if instability occurs in one country, you can still look to reap gains from your other investments from across the world. Greater variety of assets and tools [...]
We’ve heard success stories of people making lots of money through online trading. Online trading is the buying and selling of financial products such as stocks, currency, commodities, and derivatives among others through online platforms. However, every success story is accompanied by hackers, virus attacks and scams. If you intend to venture into investing your hard-earn cash, you must first have capital. What if you don’t have enough cash flow? Not to worry – you can always take out a personal loan in Singapore. You need not be an expert to go into online trading, however, you will need to be aware of the risks involved and learn to trade online safely. If you do decide to take up a Singapore loan for your investment, CompareSing is a one-stop platform where you can enquire about legal loans in Singapore with more than one partnering licensed moneylender to suit your needs. In this article, we will cover four things you should consider to ensure a safer online trading experience. Ensure Safe Browsing The first thing you need to consider before you begin online trading is your online security. By installing Anti-Virus and Anti-Spyware software and completing a full system scan, you […]
The constant evolution of technology and the global economic system has given rise to contactless payments systems. The manifestation of contactless payments systems was first seen during the golden age of capitalism post World War II when there was global acceptance of Visa and MasterCard as payment systems. Today, with the COVID 19 pandemic putting a halt to air travel and human interaction globally, we have seen cryptocurrencies gaining popularity especially with the ‘Bitcoin’ craze, and get rich quick schemes by ‘investing in cryptocurrencies. For most individuals, cryptocurrency means Bitcoin. However, it should be noted that there are more than about 4,000 different kinds of cryptocurrencies that are being circulated today in the blockchain (a database that stores chronological data to validate a transaction) that cryptocurrencies utilise to transfer coins to one another. In this article, we will simplify the concept of cryptocurrencies so that consumers are well informed on the risks involved whenever purchasing them and if it is worthwhile to even take up personal loans in Singapore to buy cryptocurrencies to make money. What are cryptocurrencies? Cryptocurrencies are digital currencies that are stored by individuals in electronic wallets that enable them to send and receive payments to [...]
Expanding Your Business Venture: How to Get an SME Business Loan in Singapore
As a business owner, managing an SME (Small Medium Enterprise) is definitely a challenging task and can sometimes require extra financial help. If you’re looking to expand your business, funds are needed to keep your company afloat and in times like these, applying for an SME business loan in Singapore can be helpful for your enterprise. Some of the business loans in Singapore are government-aided specifically for SMEs to help finance their corporations. One of the most popular business loans for SMEs is a short-term working capital loan which is an unsecured business term loan in Singapore. This working capital loan in Singapore does not require any collateral and is offered by 17 financial institutions including established local banks such as DBS and OCBC Bank. Applying for a small business loan in Singapore can be daunting if you are a new start-up so it is important to know the details, eligibility and rates of the loan before applying for a working capital loan in Singapore. Here is an easy guide to SME business loans in Singapore for a comprehensive breakdown of the loan aid. What You Can Get From an SME Working Capital Loan If you own an SME [...]
Essential or Unnecessary: When Should You Consider a Payday Loan in Singapore?
You’ve run out of cash and payday is still weeks away but you have bills to pay and are in need of some money. There are times when we get caught in this situation where a sudden emergency situation takes us off guard and we don’t have the required funds for it. In circumstances like these, loans can be of help if well thought out and planned. Loans, such as emergency payday loans from direct lenders, are popular for those who need cash urgently. However, this quick loan can come with many liabilities if not well-managed. Before looking for a payday loan in Singapore, it is good to find out all about them and compare a payday loan to other types of loans available. What Is a Payday Loan? A payday loan is a short-term loan specifically made for urgent situations. It is a sum that is given to you before your payday, which essentially brings forward your income for the month. Typically, your next monthly income would be used to pay off this loan, hence its name. You can apply for fast payday loans online from a licensed moneylender that offers the best payday loans in Singapore. However, [...]
Looking for a loan? Here are the types of loans in Singapore to consider.
The exponential growth in Singapore’s economy since independence has not only made it a place of interest for established businesses, it has also garnered the attention of many new startups. With a huge influx of foreigners and the limited land space, Singapore has expectedly, grown to be one of Asia’s most expensive countries to live in. As such, it is often that we may see the ones around us or even ourselves, cash-strapped until the next paycheck or, stressing over an unexpectedly large bill/purchase. Here, we shall take a look at the most common types of loans in Singapore so that we will be able to ease off the financial strain caused by large bills or unexpected payments. Fast cash loan Living in arguably one of the most expensive cities, it is a common occurrence to exceed our monthly spending budget, having to deal with some unexpected or overlooked payments. This may be a result of unexpected property damage or a vehicle breakdown. Such complications require urgent and almost immediate attention, which may undoubtedly cause a strain on our finances. Unfamiliar to most of us, the solution to our financial conundrum lies in a simple and direct fast cash [...]
4 Tips to Follow to Get the Best Legal Loan in Singapore
There are many loan options and types of lenders that you can find to get a legal loan in Singapore but without the proper research and consideration, you could find yourself applying for a loan that is way above your budget. Getting the best loan in Singapore would require you to assess your financial situation, plan for the long-term and shop around before settling on your loan and lender of choice. Rushing into a loan application is never a good choice so doing the groundwork before diving in is vital in getting the best bang for your buck. Here are four tips to follow to get the best loan in Singapore. 1. Consider the Sum You Need and the Duration of the Loan Before looking up the different interest rates lenders offer, you first have to decide how much money you need and the duration of the loan repayment as these factors will affect the overall charges of your application. To find the best loans that cater to your situation, figure out your needs and the reason for getting a loan. If you’re looking for a bigger loan sum for a significant purchase such as buying a home, these loans […]
How fast is a fast cash loan? How long does the process really take?
Getting a fast cash loan in Singapore is often described as a fast, seamless process. But how true is this? How fast is a fast cash loan in Singapore? If that is the question lingering in your mind, you are at the right place. In this article, we provide an answer to any questions you may have about the loan acquisition process in Singapore. 1. Determine the kind of fast cash loan you need Before approaching any lender, the first question you should ask yourself is this: why do I need this loan? The most common purposes served by instant cash loans in Singapore include medical emergencies, student emergencies, home renovation, or wedding expenses. Having a solid reason will help you stick to a budget and approach a lender who specializes in what you’re looking for. 2. Get your Documentation in Order With your ideal fast cash loan in mind, the next step should be acquiring the necessary documents. And while these may vary from lender to lender, there are some similarities. Ideally, a fast cash loan requires minimal paperwork and documentation. First, most lenders will expect you to provide evidence of income and employment in the form of payslips […]
Licensed money lender Singapore interest rate: What you need to know about them.
Looking to borrow from a licensed money lender but afraid of the extra charges? Contrary to popular belief, it is actually illegal for a licensed money lender in Singapore to charge extremely high interest rates that are volatile. Licensed money lenders are verified under the Ministry of Law with regulated interest rates. Here are some of the misconceptions on the interest rates imposed by a licensed money lender that you should know about. 1. The interest charged can only be imposed on the remaining balance The borrower should only be charged interest on the remaining amount that needs to be repaid. The computation of interest charged on the loan must be based on the amount of principal remaining after deduction of payment made. For example, if you take a loan of $20,000 and repaid $6,000, only the remaining $14,000 can be taken into account for interest. 2. There is a maximum interest rate imposed A money lender in Singapore can only charge a maximum of 4% monthly interest rate to prevent borrowers from going into debt paying rounds of hefty interest rates that never seem to end. This 4% cap applies regardless of your income and whether the [...]
Evolution of fast cash loans in Singapore and what to look out for – Cash Loans Compare (Singapore)
Cash loans have played an integral role in the development and progress of most economies, even before the start of a global monetary system. It has since transformed to take varied forms, subdivided by certain financial factors that are important to understand and consider before we begin comparing cash loans in Singapore and, consider applying for any fast cash loans in Singapore. Thousands of years ago, farmers used to borrow seeds to grow plants and pay them back at a later date. As one plant can produce hundreds of seeds, the farmer would then be able to return the initial seed along with another one which can be considered as the ‘interest’. That way, the farmer had access to abundant seeds and at the same time, he would’ve cleared his loan obligation. Since then, we have seen this model being adopted by most economies to a point where fast cash loans in Singapore are seen as a crucial driver of our society. Today, we have mainly two types of fast cash loans to understand, in order to ensure the wellbeing of our personal finance. The first type of loan that we should be well aware of would be [...]
Are online fast payday loans the best option during an emergency?
It is not uncommon for us to sometimes see ourselves in a financial predicament, deciding on how we were going to pay for an unexpected bill or an unusually large purchase. We may often be overwhelmed with the options available and more commonly, most of us lean towards using credit or taking up an online loan. Also, with rising costs of living and job uncertainty due to the current global pandemic, there has been an exponential increase in the number of young adults taking up payday loans. As such, it is important to understand the complexities surrounding the different types of loan options and in this article, we shall discuss the options available and also focus on why online fast payday loans may not always be the best option available. In fact, it may further exacerbate the existing financial issues. Firstly let us look at what exactly is an online fast payday loan. Pretty self explanatory in its name, it is one where we borrow money from a financial institution and provide assurance that we will return the base sum and interests, by the next date that we receive our salary. These are short term fast cash loans that do […]
Legal Loan in Singapore: Top 3 Frequently Asked Questions
Looking for a legal loan in Singapore? If you are planning to make a big-ticket purchase to fund your dream wedding, a hard-earned vacation, redecorating your house, or perhaps an unforeseen medical emergency, you will need money, lots of it. Besides dipping into your cash savings or signing up for another credit card, are you looking for a simple alternative that can meet your needs? No matter what your circumstances are, a personal loan is often an option many people consider for affordable loans. If you are new to loans, you might have a ton of questions. Read on to have your questions answered as we consolidate the top 3 frequently asked questions about personal loans and applying for one in Singapore. What are the types of personal loans? To start, you might be wondering how personal loans differ from a credit card and other loan options. A personal loan is an unsecured loan that does not require collateral. It makes it more available to the masses as people need not use their assets to secure a loan, posing less risk for them. Unlike credit cards that typically have higher interest rates, personal loans have a fixed [...]
The idea of taking a loan is often a topic individuals from a monetary conservative society might shy away from. However, it’s key that we all have a more accepting perspective towards the concept of borrowing, as it is just how most economies sustain themselves and reach financial success and freedom. As we all are familiar with the basic understanding that a loan comprises both, a lender and a borrower, the technicalities of each type of loan existent within our society are countless. Let us discuss the 2 most common types of consumer loans in this article which are secured and unsecured loans and when would these loans be the most viable option in our daily lives. The most common type of loan that most of us are familiar with arguably would be a home loan or a vehicle loan. These are known as secured loans, as the borrower pledges the collateral (in the case of the house or vehicle) against the loan. This is necessary as it lowers the risk incurred by the lender as they might possess the house or vehicle in the case of payment defaults. This enables the lender to provide the borrower with [...]
Effectively Settle Your Debts with Instant Cash Loans
Credit card debt is one of the fastest growing types of debt in Singapore. It’s so easy to sign up for one to make cashless spending effortless and convenient. It gives one the illusion of spending power to fund a lifestyle they can’t afford. It’s easy to forget that every swipe adds onto your debt and could eventually cripple your finances. Yes, you can spiral and fall into a debt trap if you are not mindful. If you are already in debt, read on to find out some tips on how money loans and short term cash loans can help effectively settle your debts. Set a realistic goal Setting realistic goals makes a huge difference especially when it comes to money matters. Paying off high interest credit cards and other types of consumer debts takes a lot of time and self-discipline. Setting realistic goals should help you visualize the financial outcome you want and make it easier for you to figure out what you should do or sacrifice to get there. Sometimes we can all use a little help to achieve our goals. If you need financial advice or access to instant cash loans, you have come to the right […]
5 Golden Rules to Live By to Improve Your Financial Life
Achieving financial freedom is a goal for many people but sadly, it’s not an easy goal to attain. What financial freedom means for most people is having a healthy savings account, a diverse investment portfolio, and a decent net worth to afford the lifestyle you want. Unfortunately, as the cost of living increases, so do our debts and financial commitments. Unforeseen circumstances such as economic downturns and global pandemics can easily add to our financial burdens. How you manage your finances today determines your future. If you haven’t already started or aren’t sure if you are on the right track, we have put together 5 generic rules to help you improve your financial life. Rule 1: Set a personal budget The first step to being financially healthy is to set a personal budget. Planning a monthly budget and being disciplined enough to stick to it is the best way to keep your finances in check. This will ensure that your bills are paid on time while having enough savings. The 50/30/20 budget is a general guide to allocate your funds, but it will be different for every individual depending on your needs. The generic rule is that you allocate 50% […]
Understanding duration of loans and different types of interest rates
It is believed that loans have been an integral part of civilisations since 3000 years ago. Today, we can also see loans existing predominantly in most successful economies and we should not negate the importance of loan management, and understanding the technicalities of each loan type. In this article, we shall discuss some types of loans, and also look at some important factors to consider before applying for a short term or long term loan. To begin, let us look at some of the requirements to acquire a loan in Singapore. For instance, to qualify for a housing loan, it's required that we have consistent income sufficient to furnish the loan every month. The existence of a collateral (house) would be the item or possession pledged against the loan. Hence if we do not oblige to the loan repayments, the financial institution may have ownership to the house. Since we all need a roof above us, the default risk (incurred by the lender) in terms of the defaults on monthly payments would usually be lower. These types of collateral-backed loans may impose lower risks on loan providers and hence the terms surrounding these loans can be flexible, and they [...]
This is the one of the most common topics we usually hear being discussed by adults and teens, often leading to stark disagreements. We have most definitely been on either side of the spectrum supporting either one of the schools of thought. With no clear or certain answer to the question, it is inevitable that the best solution to this paradox would be: to know when to spend and when to save. Below are some points that we can consider while deciding if we should hold back our expenses or splurge it all. Let’s discuss this by putting into context the new variable affecting the global economy. With the rise in the number of COVID 19 cases globally, we have seen most countries adopting the orthodox solution of expansionary monetary policy, by providing their economies with large stimulus packages. This ‘stimulates’ the economy by increasing money supply, which would then lead to money becoming ‘cheap’(since interest rates are low) to encourage greater borrowing (due to the cost of borrowing being low) which would in turn lead to economic growth via greater economic activity as consumer expenditure (a determinant for economic growth) would increase. Hence, if we were looking to [...]
Building your emergency fund? When to pay medical bills with a loan
One of the biggest mistakes you can make when saving money or setting a budget is neglecting emergency costs. It’s one thing to calculate your regular expenses like groceries, rent, subscriptions and public transport, but you’re shooting yourself in the foot if you forget to account for the unexpected. Cars break down, roofs spring leaks and accidents happen – medical expenses, in particular, can be hard to deal with if you aren’t prepared with the necessary finances. It’s impossible to know when you’ll need to use an emergency fund, but there are so many reasons to start building one now. Why you need an emergency fund 1. You’re setting a budget Budgeting is a smart way to manage and protect your finances no matter your circumstances, but if you don’t account for unexpected costs you’re in danger of putting your bank balance in the red or facing financial ruin. 2. You’re the sole breadwinner Some couples and families get by on a single income, but what happens if you can’t work or lose your job? It’s particularly important for sole earners to build a fund they can rely on when surprise expenses arise. 3. You have a savings goal Whether […]
Should I use a personal loan for home repairs and renovations?
Most homeowners will agree that property is far from a set-and-forget investment. Houses and apartments age just like anything else, and we’re willing to bet you have a never-ending list of renovation ideas no matter the size or state of your home. There’s also the matter of maintenance and repairs, which are often impossible to predict and can leave you significantly out of pocket in what feels like the blink of an eye. Knowing how to cope with the cost of repairs and renovations will do wonders for your wallet and protect you from potentially life-changing financial difficulties. Expensive home repairs to look out for 1. Roof repairs Your roof takes a serious beating throughout the year as it protects your home from Singapore’s relentless heat and fierce thunderstorms. This makes it vulnerable to leaks, rotting and other damage, which can range from replacing tiles for a few hundred dollars to a full replacement costing you thousands. 2. Mould removal Mould can be a slow but destructive force in buildings, whether it’s a small buildup on visible surfaces or permeating through the entire structure. What can seem like an insignificant issue can cost a small fortune to remediate before major […]
Loans for Grab drivers: How to manage the costs of ride-sharing
The explosive rise of ride-sharing services hasn’t just been a game-changer for consumers. Singaporeans looking for a career change or a side hustle have flocked to brands like Grab in droves, snatching up the opportunity to earn some cash in a rapidly evolving industry. But what are the benefits and associated costs of driving for Grab, and how can you make it worth your while? The benefits of becoming a Grab driver The nature of ride-sharing apps has completely transformed how drivers operate, making it far easier for private citizens to sign up quickly and work flexible hours. These low barriers for entry contrast with traditional taxi services, effectively allowing drivers to be their own boss by choosing when and for how long they work. While some enjoy driving full time, Grab is equally suitable for those seeking a side hustle that brings in some extra cash to supplement their main job. Drivers can choose to take passengers, deliver food or do both, and can take advantage of perks like fuel rebates. As long as you meet the eligibility requirements for driving or delivering, you can get started in no time at all. Driving with Grab: Costs to account for […]
6 overlooked business costs and when to consider a loan
Dealing with financial challenges is par for the course when running a small business, even for the most well-equipped entrepreneurs. Keeping track of the expected costs is hard enough, but there are so many unexpected expenses that can catch you off guard. Navigating these costs is key to growing and sustaining a successful business, so it’s important to be as prepared as possible for any eventuality. Here are some of the most overlooked costs in starting and managing an enterprise, and what you can do if you find yourself short on cash 1. Registering your business You probably know that in Singapore, you can’t just throw up a sign and start trading on the spot. New businesses need to officially register via the Accounting and Corporate Regulatory Authority (ACRA) and pay a series of fees depending on the nature of the organisation. From reserving a name to obtaining the relevant licenses, costs can quickly accumulate before your doors have even opened. 2. Research and development Any successful enterprise needs to validate its core business idea. Research and development is crucial to developing a market-ready product or service, and many entrepreneurs are surprised by the amount they end up spending. Whether […]
5 questions to ask yourself before taking out a loan
We all like to pay for things out of our own pocket, but sometimes borrowing money is the most viable way to cover big purchases. From personal loans to business loans, it can be a suitable option when you need to invest more than you can feasibly take from your savings. Before you sign on the dotted line with one of Singapore’s licensed money lenders, you should always ask yourself a series of simple but important questions – even if it isn’t your first rodeo. The more time you take to properly consider your options, the more likely you are to set yourself up for success. 1. How much money do I need? It might sound obvious, but many people agree to a loan based on guesswork and end up with unnecessary debt. Avoid this trap by calculating exactly how much money you need to achieve your goal and be sure to factor in all relevant expenses. When buying a car in Singapore, for example, you would usually need to take the vehicle’s open market value and add Certificate of Entitlement (COE), excise duty, GST, registration and any other applicable taxes and fees. For more complex investments like starting […]
A quick & easy guide to business loans in Singapore
Cash flow is central to success for businesses of any size. Without capital to invest, profitability is little more than a pipe dream for entrepreneurs. As a result, business loans have become a key ingredient for fledgeling small and medium enterprises (SMEs) in Singapore, particularly those that don’t have the luxury of early backing from investors. A loan can be a crucial leg-up that funds critical infrastructure, property rental, inventory purchases or anything in between. There’s no single type of business loan in Singapore: rather, it’s a broad term covering a range of financing options with varying rates and terms. Since banks and other financial institutions offering these loans turn down a high percentage of applications based on insufficient criteria matching, it is vital to know how to secure the best possible chance of approval. Types of loans available to SMEs There is a huge range of loans available to businesses in Singapore with products varying between lenders. These include: 1. Unsecured bank loans General financing without collateral, able to be invested as you see fit, akin to a personal loan. Unsecured Business Term Loan Popular among many SMEs, it can fund anything, from equipment rental to office fit-out […]
What’s the best loan for a new dream car in Singapore?
We would all love to stroll down to the dealership and buy our dream car outright, but most of us simply don’t have that kind of money. Once you consider all other costs associated with owning the car you want – registration, insurance, road tax, petrol and maintenance – that price tag can make your eyes water. Getting the keys in your hand requires a significant investment and you want to get it right the first time around. The good news is there is a range of loans available in Singapore that can make your dream a reality. But before you hop into the driver’s seat, there are things to consider to make sure you get an affordable deal and avoid seeing your vehicle repossessed as a cloud of debt grows over your head. Personal loans vs car loans: How do they compare? Individuals can consider two types of loans in Singapore to finance a new car: personal loan and car loan. A personal loan is money lent for general purposes, whether it be to pay for a holiday, a wedding or even a car. These loans are usually unsecured (no collateral), and those with a good credit history will […]
What is a debt consolidation loan and is it right for me?
Household debt in Singapore reached S$317 billion in July 2020, highlighting how much our society relies on borrowed money to fund everyday necessities. Not all of it is bad: lending allows people to buy their first home, get a better education and invest in their future. But debt from unsecured lending like credit cards and personal loans can cause financial havoc if left unpaid, with high interest rates and overdue fees snowballing into mountains of debt. What is a debt consolidation loan? A debt consolidation loan (or plan) is a repayment scheme that combines all your unsecured debt. The bank or financial institution providing the loan will pay off what you currently owe (outstanding debts and interests), allowing you to settle any pending late fees and start making a single monthly repayment to the lender. If you take out a consolidation loan for the first time, the lender will usually charge an additional 5% on top of the total loan requested to settle any unforeseen late fees and other incidental charges from your current creditors. Any unused money from this fee is refunded to you once the loan is repaid. There are several advantages to this type of loan, […]
Secured vs unsecured loans in Singapore: Know the difference
The concept of borrowing money is simple enough: someone agrees to give you a set amount of money, on the condition you pay them back within a specified timeframe along with a little extra for their troubles. But there are many different types of loans, most of which can be divided into the two categories of secured and unsecured loans. What is a secured loan? A secured loan is a line of credit provided to an individual or entity against an asset. This asset is known as security and can be something the individual already owns or that which they intend to purchase with the loan. The asset is often a home or car, but it can also be cash, savings accounts, fine art, jewellery and just about anything of worth that can be accurately valued. Security is used to provide peace of mind to the lender. If you default on your loan, the lender may be entitled to seize the asset in question and put it up for sale to recoup their losses. Because secured loans are less risky for lenders, they are able to offer larger amounts, lower interest rates and longer terms. Common types of […]
Are you falling for these 5 myths on personal loans in Singapore?
Money is clouded by countless misconceptions, and it can be hard to distinguish fact from fiction, especially when it comes to borrowing. A personal loan, just like a mortgage, credit card or any other form of borrowing used by countless Singaporeans, is a common financial product that can be beneficial when used responsibly. Weddings, holidays, renovations, emergencies – life is full of moments that weigh heavily on the savings account, and a personal loan can be a great way to manage large expenses. They can also be used to consolidate existing debt and create a more realistic repayment plan moving forward. But there are many common myths about personal loans in Singapore, and it’s important to know your way around them before you sign on the dotted line. Myth #1: You must have a fixed salary to be approved for a loan If the above were true, it would be bad news for many: there are more than 200,000 freelance workers in Singapore along with over 400,000 registered businesses, many of which are privately owned. But thankfully, those who do not earn a salary can still be approved for a personal loan. You will need to prove your income […]
While bankruptcy is something that needs to be taken seriously, it is not the end of the world and there are ways you can recover. It’s certainly something everyone wants to avoid, but it can be the circuit breaker you need to freeze snowballing debt, plan for a brighter future and protect yourself and your family. If you have been declared bankrupt in Singapore and want to take out a loan to start a new business or grow an existing one, there are some things you need to know before making your application. What is bankruptcy? Bankruptcy is when an individual owes more than they can pay. In Singapore, bankruptcy can only be declared if the debt exceeds $15,000 (this was temporarily increased to $60,000 until October 19 due to the economic impact of Covid-19). The aim of the bankruptcy process is to help creditors reclaim what they are owed while protecting the individual from complete financial ruin. You can voluntarily file for bankruptcy with the court, or a creditor may file on your behalf if they believe you cannot settle the debt. If you are declared bankrupt, the court will appoint an Official Assignee (OA) to oversee the […]
Can repaying personal loans clear bad credit history?
If you are thinking of taking out a loan, you’re at a stage reached by most people in Singapore at some point in their lives. Whether it’s to buy a first car or home, earn that dream university degree or cope with the cost of an unexpected emergency, borrowing money is often necessary to make those life-defining purchases and maintain financial stability. But before you begin making applications, your credit score is an important factor to consider. Your credit score is a four-digit number between 1000 and 2000 generated by the Credit Bureau of Singapore (CBS) to help lenders assess how likely you are to repay your loan. Depending on your score, you’ll be given a credit rating beginning at AA (best), BB and CC and so on through to HH (worst). First, let’s cover the basics. How is my credit score calculated? CBS relies on an algorithm which takes a range of factors into account to calculate your credit score: Utilisation pattern How much of your credit limit you use (i.e. whether you are restrained with spending or regularly max out your credit card) Recent credit Any abnormal changes in the amount you borrow […]
4 Myths about Debt Consolidation Loans in Singapore
When you start dealing with two or more forms of debt, it’s easy to start feeling overwhelmed. You need to wrap your head around the differences between loans and lines of credit, keep track of numerous fixed and variable interest rates, deal with varying repayment terms and somehow stick to your budget through it all. If you do start losing track, falling behind on repayments or facing the risk of snowballing debt, a debt consolidation loan can be an effective way to retake control of your finances and simplify your repayments. Debt consolidation can be suitable for those having difficulty managing their loan repayments, but there are plenty of common misconceptions that can make it seem more confusing than it is. What is a debt consolidation loan? In essence, a debt consolidation loan is a repayment scheme that gathers all your streams of debt into one. The lender uses the loan to pay off other lenders you currently owe money to, including interest and any outstanding late fees or penalties. This process eliminates the confusion of multiple repayments, interest rates and conditions by bringing it all into one debt you can settle under a straightforward repayment scheme. Myth […]
Planning a baby: Should I take a personal loan to cover the costs?
Becoming a parent is one of life’s most rewarding experiences, but it’s no secret that it’s expensive. Most couples aim to be as financially stable as possible before starting (or growing) a family in Singapore, and rightly so: money trouble is the last thing you need when raising a little one. Some of the costs of preparing for and raising a child are more obvious than others. For example, it’s likely you’ve already thought about the essentials you’ll need to start buying such as diapers, clothing and feeding supplies, as well as a crib or bassinet. But you’ll also need to tally up the totals for the numerous scans and check-ups you need to get during the pregnancy, not to mention the medical costs of caring for your baby once they are born. Once you add a stroller, carrier, car seat and all the other equipment you’ll need, the budget can start looking a little tight and you’d be forgiven for wondering where the money is going to come from. None of this should deter you from what is one of life’s most precious gifts, because it’s worth every cent to hold your baby for the first time and watch […]
Is it wise to take a personal loan to pay off student debt?
Studying at university is a fantastic pathway to many rewarding careers, particularly in a country with such rich opportunities for students. Citizens, permanent residents and foreigners in Singapore have access to some of the finest educational institutions in the world, opening doors to jobs at the forefront of cutting-edge industries. But the cost of tertiary education remains one of the biggest hurdles for students in Singapore: fees for three-year general courses in 2020 typically fell between $25,000 and $40,000, even after taking subsidies into account. For more expensive courses like medicine and dentistry, students can expect to pay well over $100,000 in total. Though the price tags might be eye-watering to most, the accessibility of education loans and grants in Singapore makes it possible for students to earn a degree and build a successful career even if they can’t afford the costs upfront. And, for many of us, an education loan is the first type of debt we encounter in our lives. It presents an invaluable opportunity to recognise the benefits and risks of borrowing money and learn how to manage debt effectively. Setting a budget and planning your repayments Many students who take on an education loan simply […]
How to cut business costs before considering a loan
Most of us are taught from a young age to “never a borrower nor lender be”. But as with many adages, this is an oversimplification. In fact, it can sometimes be imprudent wipe out your existing funds, rather than use a loan. Here’s when you should use a loan in place of your savings: Small and medium-sized enterprises, or SMEs, are critical to Singapore’s economy. In 2019, SMEs accounted for 99% of all enterprises, employed 72% of the workforce and contributed more than $200 billion to the economy. While the numbers prove Singapore is a land of opportunity for businesses, they also highlight the intense competition. Entrepreneurs need to look for new ways to add value and cut costs on a continual basis, and it can feel like walking a tightrope to keep a business in the green. Cost-cutting strategies for modern SMEs 1. Outsource time-consuming tasks and functions There is a long list of tasks and functions that go into running a successful business, but not all of them need to be performed in-house. Marketing, accounting, payroll, website development and IT support are just some of the processes that can be performed by a third party as part […]
Most of us are taught from a young age to “never a borrower nor lender be”. But as with many adages, this is an oversimplification. In fact, it can sometimes be imprudent wipe out your existing funds, rather than use a loan. Here’s when you should use a loan in place of your savings: Planning for a wedding is an amazing journey to take with your partner, but it does take plenty of time and energy. The hope, excitement and raw emotion mixed with the long list of items on your to-do list can be a little overwhelming, not to mention the potential cost once everything is tallied together. Whether you’re happy to spend big on an extravagant ceremony or want to keep things casual to save on costs, it’s important to have a budget so you can track spending and keep expenses within your means. Even if you cut down on luxuries, it can be surprising how quickly costs can climb for a wedding in Singapore without the right preparation. Common wedding expenses to account for There are a range of expenses you are likely to encounter when planning your wedding, some of which are more easily avoided than […]
Business loans, venture capital or grants: How should I fund my startup?
Most of us are taught from a young age to “never a borrower nor lender be”. But as with many adages, this is an oversimplification. In fact, it can sometimes be imprudent wipe out your existing funds, rather than use a loan. Here’s when you should use a loan in place of your savings: Launching a startup is an exhilarating journey filled with hope, ambition and plenty of hard work. Singapore is no stranger to the highs and lows of starting a new business, with an estimated 55,000 startups calling the island home – nearly twice as many as a decade ago. The fact Singapore is a hive of startup activity should come as no surprise, given the country has ranked in the top two of the global Ease of Doing Business rankings since 2006. A deep talent pool, world-class infrastructure and universities, a robust economy and ample local and international trade opportunities all contribute to Singapore’s reputation for nurturing successful new businesses. Government support also plays a role, with a range of financing schemes and support programs that aim to propel startups to success and encourage innovation that may be too risky elsewhere. The challenge of securing finance It’s [...]
Payday loans explained: How they work and where to compare loans
Most of us are taught from a young age to “never a borrower nor lender be”. But as with many adages, this is an oversimplification. In fact, it can sometimes be imprudent wipe out your existing funds, rather than use a loan. Here’s when you should use a loan in place of your savings: Staying on top of your finances and maintaining steady cash flow isn’t always as easy as it seems. It’s one thing to keep your spending in check when everything goes to plan, but unexpected expenses can quickly throw your plans out the window. This is truer than ever in Singapore, where the cost of living is infamously higher than almost anywhere else in the world. Medical bills, car repairs and emergency home maintenance are just some of the many inevitable costs that are almost impossible to anticipate. If you do find yourself in money trouble and sweating over whether you can make it to payday, you may be considering borrowing money to help you stay on your feet. Payday loans can be a useful way to bridge the gap until your salary comes through, but it’s important to know how they work before you sign [...]
5 critical questions to ask before taking out a business loan
Most of us are taught from a young age to “never a borrower nor lender be”. But as with many adages, this is an oversimplification. In fact, it can sometimes be imprudent wipe out your existing funds, rather than use a loan. Here’s when you should use a loan in place of your savings: Singapore’s wealth of business opportunities comes as no surprise. The country has never dropped below second place on the global ease of doing business index since 2006, including a ten-year streak at number one from 2007 to 2016. It has thrived off the back of a highly developed market economy and a much-coveted AAA international credit rating. On paper, the numbers paint an attractive picture for those hoping to start or expand an SME business in Singapore, and a loan can be a great opportunity for entrepreneurs to inject the capital required for growth. Financing inventory purchases, buying or renting property, preparing to fulfil new contracts, investing in machinery and other infrastructure, hiring new talent - there’s no shortage in the list of reasons you might need a business loan. But before you start applying to borrow money from every bank and financial institution on the horizon, [...]
Most of us are taught from a young age to “never a borrower nor lender be”. But as with many adages, this is an oversimplification. In fact, it can sometimes be imprudent wipe out your existing funds, rather than use a loan. Here’s when you should use a loan in place of your savings: Should I take out a loan to pay for surgery? It can be difficult to cope with the strain of medical expenses in Singapore, whether it’s planned treatment or an unexpected emergency. It’s true that we benefit from one of the finest healthcare systems in the world – with schemes like MediSave, MediShield and MediFund, the country has previously been recognised as Asia’s healthiest and the world’s second-best for health outcomes. But access to first-class healthcare doesn’t necessarily come on the cheap, especially if you require surgery. Once you factor in the withdrawal limits of MediSave, limits and exclusions in any insurance policies you hold, and the generally high cost of living, it’s no wonder so many citizens and permanent residents find themselves in financial trouble when needing surgery. How much does surgery cost in Singapore? It goes without saying that the cost of surgery in Singapore [...]
When should you use a loan instead of your savings?
Most of us are taught from a young age to “never a borrower nor lender be”. But as with many adages, this is an oversimplification. In fact, it can sometimes be imprudent wipe out your existing funds, rather than use a loan. Here’s when you should use a loan in place of your savings: The liquidity cushion, or “emergency fund” An important concept to understand in loans and savings is the liquidity cushion; sometimes called a rainy-day fund, or emergency fund. To explain this concept, let’s consider a typical Singaporean challenge: buying an HDB flat. In this example, we will consider a 50-year old man named Tan. Tan is 15 years from retirement, and has just sold his last flat. He has received $600,000 from the sale, a good price. Now, he wants to move into a new flat. He could apply for another HDB loan, but then he chances upon an internet article that says to avoid debt. The article tells him that, to minimise interest repayments, he should avoid taking loans and pay in full where possible. Tan decides to go ahead and spend all $600,000 on his new flat, leaving nothing to spare. A year later, disaster [...]
A common promotion you’ll find, especially in the holiday months such as December, is the “interest-free loan”. This may seem like the best deal when taking a loan, but don’t be fooled: the lender still has to be paid somehow (even advertising the loan costs money), and it’s not quite as free as you think. Here’s how it really works: What you need to know about interest-free loans: There are five important things to note about interest-free loans and how they work. These are: They are only interest-free for a given period There is still a fee, even if you are not charged interest If you’re buying from a shop, the interest may already be factored into the price It is possible for an interest-free loan to be more expensive than a loan with interest The “interest-free” loan on a credit card only applies to a balance transfer, not to everything else charged to the card They are only interest-free for a given period In Singapore, most interest-free loans have a six-month period. This means you are not charged interest during those six months. After those six months though, you will be charged the standard interest rate for any outstanding [...]
A common financial mistake is to try and live paycheque to paycheque. If you find that you’re always broke before your next payday, you’re not using your salary well; and while you can live this way for a while, a single emergency could derail your lifestyle and cause years of financial damage. Here’s how you should be using your salary responsibly: The four key elements of using your salary responsibly: Maintaining a savings fund Long term wealth accumulation, for retirement Keep your expenses low Using zero-based budgeting Maintaining a savings fund You should save 20 to 30 per cent of your monthly income, until you manage to accumulate around six months of your expenses. When you have a savings fund, you’re prepared for situations such as sudden retrenchment, drop in income, lawsuits, inability to work for medical reasons, and so forth. A savings fund ensures that you won’t fall back on your various obligations, such as outstanding loans, your mortgage, your insurance premiums, etc. This will prevent situations like losing your house to the bank, or ending up uninsured. Another advantage of a savings fund is that it reduces the need for loans. While there are many loans available for [...]
4 important money goals to hit before you reach 30
30 is a crucial age for many Singaporeans, financially speaking. This is the age when many of us buy our first house or car, or settle down to raise a family. Also, this is the age at which some of us start looking after our aging parents. As such, there are important money milestones to aim for at this crucial age: 1. You should have sufficient funds for your first home, in either savings or your CPF How much is enough for your first home? Well, that depends on what sort of house you buy, and whether you use a bank loan or a HDB loan. For reference, we’ll consider a four-room flat that costs about $350,000 today. This is a typical amount faced by many Singaporeans. Using a HDB loan, you can borrow up to 90 per cent of the flat’s value. This leaves you with a down payment of $35,000. This money can be paid in cash, from your CPF OA, or a combination of the two. If you use a bank loan*, you can only borrow up to 75 per cent of the value. This means you need to fork out $87,500 for the down payment on [...]
With good money management, you should always be able to repay your loan on time. But this is an ideal – sometimes, situations such as multiple emergencies (e.g. job loss coupled with serious illness) stop us from making the needed repayments. If you’re in such a situation, here are some quick steps to take: Contact the lender as soon as possible The worst thing to do is “play dumb”, and ignore calls or warning letters. The reason is that loans compound over time. The longer you wait, the worst your debt will become. For example, if your loan has an interest rate of 26 per cent per annum – a typical rate for a credit card - it only takes around 2.7 years to double your debt. (Note: to estimate how long it takes to double your debt, just divide the interest rate from 72. For example, an interest rate of nine per cent per annum would double your debt in 72 / 9 = 8 years). The sooner you address and try to repay your debt, the smaller the amount you have to deal with. It’s much easier to tackle your debt when it’s $1,000, than when it’s snowballed [...]
Is it important that we have multiple streams of income?
When it comes to multiple streams of income, many Singaporeans prefer it. But we don’t act as if we need it. The typical Singaporeans is quite content to rely on a single employer, to meet all their financial aspirations and goals. However, this isn’t just limiting – it can even be dangerous. Here are some things to consider, regarding multiple income streams: First, what do we mean by multiple streams of income? A stream of income is a reliable and consistent source of money, that can carry on indefinitely. Some examples include: Perpetual income bonds, which pay out bond coupons and never mature Rental income from properties that you own Dividend pay outs from your stock portfolio Annuity insurance, which pays out a fixed amount from a certain age (such as 65) till your death Extra income from running a side-business, or multiple business ventures Royalties from something you’ve created and copyrighted, such as a song or book you’ve written, or for the sale of a product you invented A second job As you can see, there are many different ways to get streams of income. However, they all share some things in common. All of the above income streams [...]
How will the defeat of former Malaysian Prime Minister Najib Razak affect us?
The election in Malaysia has all the makings of an epic event – a man over 90 returns to politics, to fight against the corrupted party that he once established. We’d be surprised if no one is calling the movie rights to this yet. Amidst the drama however, some voices of concern have arisen: what does this mean for Singapore? Five ways PM Mahatir Mohamad’s victory could impact us Possible impact on property prices in the Jurong region Potentially tighter compliance issues for banks A potential return to an adversarial relationship His intended replacement, Mr. Anwar Ibrahim, bodes well for us This has probably improved long term, regional stability Possible impact on property prices in the Jurong region PM Mahatir is re-examining some of the major deals and infrastructure project, that were passed under his predecessor. One of the key deals is the High Speed Rail (HSR), which was meant to connect Singapore and Malaysia. The terminus of the HSR was to be in Jurong East, and this caused a rush for Jurong region properties. Even now, developments such as Le Quest are selling like hotcakes, on the presumption of the HSR being built. Due to the large number of […]
What does it mean if we can’t use our CPF to buy a house?
A Professor of Economics at UniSIM, Walter Theseira, caused an uproar recently at the President’s call for policy suggestions. He mentioned that CPF use for housing should be curbed, which is a sore spot for many Singaporeans. Most of us are already worried about rising home prices; if the CPF were truly curbed for housing use, how could we afford it? Here are the likely consequences: First, we need to understand how CPF is used for housing Singaporeans can use their CPF Ordinary Account (CPF OA) for housing in the following ways: Making the down payment onthe house Paying certain stamp duties and fees Servicing the monthly mortgage repayments Making the down payment on the house The Loan-To-Value (LTV) ratio determines how much of your house can be financed through borrowing. For example, if you have an LTV of 80 per cent, then you can borrow up to 80 per cent of the purchase price or valuation of your house, whichever is lower. For example, say you want to buy a resale flat, that costs $400,000. The official valuation of the flat, as conducted by HDB, is $390,000. The bank is willing to grant you an LTV of 80 per […]
Are you thinking of leaving the rat race and starting your own business? After all, running your own business can offer a number of advantages – higher income potential, no nasty bosses to deal with, working in your own time and even the likelihood that you can work while travelling. That said, starting out on your own is obviously not easy; this is one reason why so many people would rather be an employee than an employer. Out of the many obstacles, coming up with the capital to finance the business is a huge one. Other than just the capital, businesses may also meet with financing needs throughout the lifespan of the business. Whether you opt for a bank loan, crowdfunding or using invoice financing, each of these sources of financing has its own advantages and disadvantages as well as criteria they will use to evaluate your business. Here’s an overview of 7 common sources of financing for new businesses: Personal savings Most business-owners start out using their own savings. While this entirely makes sense, it may not be the wisest thing to do. However, this can be risky since you stand to lose all of your money. It may […]
Young and in debt – 5 foolish mistakes you need to stop making
For most of us in Singapore, our first encounter with debt could be the small amount of money we’ve borrowed from a close friend when out allowances fell short of an impulsive splurge. While that’s nothing serious, it could be the basis of a bad habit that could affect your life ahead negatively. In terms of official debt you are likely to encounter in your twenties, it might be the study loan you had to take in order for you to get through tertiary education. It can also be that first credit card you’ve so happily applied for and is now having some difficulty to repay. Whichever it is, it’s good to realise your mistake now rather than later. If you are currently in debt, read on to find out what mistake you could be making and seek to rectify them before it is too late. Not taking debt seriously “What’s the problem of owing the bank some money? What can they do to me?” You may not see the effect now, but do you know that every bad debt you have goes into your credit report? (Credit Bureau Singapore)is the organisation that aggregates credit-related information amongst participating financial institution […]
Maybe you are just not the kind to have excess money sitting in your bank account. Well, what can you do when you earn barely enough to cover your monthly expenses? If that’s you, you might want to think about setting up a budget and saving for emergency purposes. But for now, you are short of cash and payday is 1 week away, what can you do? Cancel all social engagements If you have scheduled a number of social engagements such as dinner and drinks with friends or had planned to catch a movie, its time to cancel them. Going for social gatherings often include spending money and in a more extravagant manner as well, so if you are already short on case, you should avoid them as much as possible. Anyway it could work if your friend doesn’t mind paying for you first. Plan your meals ahead You can cut out on the extravagant stuff in life, but you can’t survive without food. If you know that you are going to be short on cash the next week, it’s time to set about planning your meals. Eating at a hawker centre or relying on some home-cooked meals can greatly […]
Should you use a personal loan for home renovations?
Buying a house is probably one of the biggest expense you will incur in your life, but it is also a source of pride for many people. So if you’ve just bought your first home, congratulations! Your next step is likely to be browsing through the beautiful pictures of home renovations and deciding on how you want the home of your dreams to look like, but you also know you are constrained by budget, so what can you do? Whether you are buying a resale HDB, an old condominium or a new Executive Condo, some form of renovation will usually be required. However, there’s always a way to keep cost low if you are cost-conscious. How much would I expect to spend? If you have bought a resale HDB, renovation cost will be on the higher side, typically ranging between $30,000 to over $50,000. For new BTO, you can expect between $15,000 to $50,000. The amount can seem a bit much, especially when you’ve just burned a huge hole in your pocket with the downpayment you’ve paid for your flat. However, you also want to do the renovations before you move in so that you do not have to deal […]
More and more people are taking the risk to start their own businesses in Singapore. Starting and running a business in Singapore is not an easy task. Other than having to deal with global economic uncertainty, getting the right credit to fund your business can be challenging as well. Taking up a business loan is quite a different thing from a personal loan. What’s more, it’s likely to be something quite unfamiliar to you, which can easily cause certain misunderstanding. So before you go ahead to look up a business loan, here are 5 myths that we are debunking to ensure that you are on the right path. Myth #1: It’s hard to get funding for a small business All lending institutions come with their own set of credit checks before they disburse any loans. This applies to every type of business, big and small. In fact, they may think twice about lending to a large company since the risk can be higher. Many lenders, including legal moneylenders, are more than happy to lend money to small businesses if they can prove their credit-worthiness. Myth #2: You can only get a business loan from a bank Similar to personal loans, […]
Do you find that you spend a huge amount of time online, shopping for things to buy even if you didn’t want to purchase anything specific? Do you find yourself walking the aisles of shopping malls after work or over the weekend, mindlessly spending on little items that you don’t really need? You could be suffering from compulsive spending. Compulsive spending may not always be the extreme situation where you can’t control yourself from spending everytime, but it could be the start of something if you find it becoming a habit. Here are some common signs of a compulsive spender and some effective ways to help you curb those urges to spend excessively: A closet full of clothes you’ve never worn, gadgets you’ve never used and books you don’t read Spending money when you’re feeling lonely or depressed. Spending money on things you don’t really need often. Feeling excited when you buy something new, but guilt soon follows Lying about how much you spend. Continuing to spend even if you can’t quite afford it. Feeling ashamed about your shopping habits. Fighting with your loved ones over your spending habits. Hiding purchases and spending habits from loved ones. Taking out loans […]
1 step at a time – how to achieve financial happiness
To achieve financial freedom seems to be a life goal shared by many, though not many are able to achieve it. While money itself can’t bring you happiness, it can be an effective means to an end, enabling you to live the life you want. While we aren’t going to promise you financial freedom just by reading this article, we’ve proposed 7 steps in which you can take to move you towards financial happiness. Learn to budget Budgeting is probably one of the most basic yet effective way to help take control of your financial situation. Tracking your finances as a first step will give you a clear idea of how much you are spending per month and what you are spending on. The next step will involve figuring out how much you want to save per month before allocating the rest of the money to different categories of expenses. This would typically include fixed expenditures such as rent, payment of any outstanding debts, utility bills, telco bills before setting up your food and entertainment budget. Repay outstanding debts Having an outstanding debt can hinder you from achieving financial happiness because the interests that you’d need to pay is […]
Is using an overdraft for your business needs a good idea?
Most businesses would require financing at some point in their life cycle, whether that’s to get capital to get the business started, to push through a rough patch or finance an expansion. There are many options out there to provide the cash even if securing the money doesn’t always come easy. The variety of financing choices can be bewildering, with different costs involved and how it works. In fact, choosing the right financing isn’t always about getting the cheapest loan/credit, but it depends on your individual needs. If you are thinking about borrowing money for your business, you should have a pretty good idea what it is for. While most businesses might go straight for a business loan, it’s not always the easiest way to get an approval. In fact, the old-fashioned overdraft was a way our parents’ generation had used, more often than not. An overdraft is still considered a significant method of short-term financing for many businesses. It is a credit facility attached to a transaction account from the lending institution. Usually, we can only make a withdrawal when there is still money in the account. But for an overdraft, the business can continue to withdraw money or […]
Personal Loan vs Credit Card: Which one suits your purpose?
Credit cards and personal loans are pretty similar in their purpose. They are both types of credit that require a monthly repayment. However, they can differ substantially in their features and fees charged. This is why it is important to consider how you want to use them in order to choose the best one suited to your needs. Credit cards are great for ad-hoc payments which you can pay off by the end of the month so that you can take advantage of the interest-free days. They also make a good financial tool to have for times where you need cash urgently since you can use cash advance to help you in emergency situations. In Singapore, credit cards are pretty popular because they offercardholders attractive benefits like cash rebates, discounts with partner merchants and even allow you to earn air miles that you can exchange for free flights. With the stiff competition around, it is not uncommon for banks to offer cash vouchers and sign-up gifts as well. On the other hand, most borrowers only take up a personal loan when they need it. Due to the fact that you’d need to pay interest once the loan is disbursed, it […]
There are essentially 2 ways to have more money – either you save more from your existing salary, or you can try to increase your income. While asking for a pay rise may not always be feasible, you can always look for side gigs that can earn you some extra allowance. Whether it is to clear off your debt faster or simply wanting to put aside more money for a rainy day, there are dozens of ways to make earning extra money painless, and even an enjoyable process. The key is to find something you like to do and turn it into an income-generating side income. If you have some extra time on hand and want to make some money instead of wasting your time in front of your TV, here are seven ideas for you. 1. Sports instructor Do you already do sports after your work every other day? Or are you a yoga-obsessed person who does yoga almost every day? If sports is your religion and you are pretty good at what you do, why not consider getting yourself certified and teach what you love? In fact, there are even certain sports activities where you don’t need formal […]
If you’ve come into 2018 bringing with you debt from last year, one of your new year resolutions could be to pay off the debt by the end of this year. But you know as what many say, “fail to plan and plan to fail”. The same goes to paying off your debt – have a solid plan that you follow religiously and Viola! You’d find that you’d cleared the debt easily. The problem is most people may not know how to go about planning their finances, giving in to living day-by-day and month-on-month, to find that at the end of the year, the debt they have just increased even if they have been making the minimum payments. If you belong to this class of debtors, it’s time to buck up your game and use these 5 tips to help you reduce debt effectively. 1. Fix an amount to pay each month The way to clear your debt fast is to make it a priority. Instead of waiting till the end of the month to use what’s left in your savings account to pay down your debt, do it the first thing your salary comes in. This will help instil […]
While it may be possible to live completely debt-free, it’s not always the smartest decision. Much like how big companies take on loans in order to expand their businesses, taking up the right type of debt not only helps you better manage cash flow, it can even help you make more money in some cases. But we also know that a loan, when not managed properly or used for the wrong reasons, can cause some dire consequences. Therefore, the most important consideration when taking out a loan is whether the debt incurred is good debt or bad debt. Difference between good debt and bad debt Good debt is defined as money borrowed to pay for items that will grow in value or generate long-term income. Taking out a study loan to pay for a course that can upgrade your skills in this ever-changing economy is the perfect example of good debt. This is because the skills that you’ve learnt will likely help you towards getting a better job or a higher pay in the future. – it is an investment in yourself. Thus, before you think of taking up any loan and incur the cost of it, it’s best to weigh it out […]
Do you know that Singapore possess the highest debt-to-GDP ratio in Asia? Put it in simple terms, the country borrows a lot of money. Are we,however in a crisis? Interestingly, no. Singapore has always gotten a high credit rating from credit rating agencies – the reason is that the money is borrowed to invest, not spend. This is unlike many civil debtors, who typically borrow to spend. And this is exactly why we get into trouble. While having debt isn’t necessarily something bad or shameful, it can quickly get out of hand when you’re not careful. So if you’re unaware of whether your debt situation is out of hand, here are 7 warning signs to look out for before you seek help. Credit rejection If your recent loan application or credit card application has been rejected, it could be due to your credit score. Banks and lenders typically pull out your credit record to check your probability of default before they disburse a loan to you. A weak credit score predicts that someone is likely to default. If your loan application was rejected, it could signal that you have too much debt under your name or you have some unpaid […]
Some of us may have found ourselves in unenviable financial positions before, and Andy was precisely caught in one such situation. Having taken on the onus of funding his younger sister’s new business, he had unfortunately had to pay for his wife’s medical fees for a small operation. As a brother, Andy found it hard to back down from his promise to his sister in helping her with the capital to start off her import/export business. Yet, his wife, who is fully dependent on him, will need his help in paying off her medical fees. Though the operation cost about $12,000, it is still going to make a huge dent in his savings, not to mention he still has a 4-year old son to take care of. Are you one of those who has considered applying for a personal loan but was reluctant due to some misconceptions? The fact is a personal loan can be used wisely to help with short-term cash flow problems, freeing you from a shortage of funds; it can also be abused by someone who would use the money unwisely, ending up in accumulating more unnecessary debt. You might associate taking up a personal loan with […]
While most of us would prefer to cruise through life without having to take up a loan or credit, that’s not really realistic unless you were born with a silver spoon in your mouth. The truth is that most people end up taking some kind of loan or credit in their life, but some, seem to get it easier than others. If you are one of those who has unfortunately been rejected for a loan, the first thing you need to do is to figure out why, and either tackle the problem head on or seek alternative financing solutions. Here are some common reasons why your bank loan was rejected, and steps to take to get the loan you need. Common Bank Loan Rejections 1. Bad Credit History Banks in Singapore have access to your credit history via the Credit Bureau Singapore(CBS). Your credit gives a summary of your credit repayment capability. The credit report enables banks and other financial institution to make better lending decisions when you apply for credit and loans. It is therefore important that you maintain a good repayment record. Non-repayments or overdue repayments will be reflected in your credit report and has the potential to […]
Perhaps you’ve always paid your bills on time and have never taken any loan before – you might be surprised if your first personal loan application got rejected. There can be many reasons for your loan rejection. While the lender may not provide you with a reason, the stated reasons below can help you get an inkling of why it happened. Possible reasons for a loan rejection 1.Bad credit history – perhaps you’ve had some late payment records but you’ve paid them off years ago, so how can they still affect your loan application? Sadly, they can. The credit bureau in Singapore keeps a record of all your different defaults and late payments across their partner banks. If your lender pulled out your record and felt that you make a good candidate for potential defaults, then you’d most likely not get the loan. What you can do – consider buying your credit report to check if the information reflected is correct. If you’ve had some bad credit history, fix the records by ensuring you are paying on time. If not, you can consider a loan from a legal moneylender which uses a different credit bureau for assessment. 2. Not meeting […]
According to Mercer, a global consulting firm’s Cost of Living Survey, Singapore ranked number 5 in the world’s most expensive cities for expatriates. Although one living here may find that daily living costs such as food and transport really doesn’t cost much, costs of housing and having a car ranks as one of the most expensive in the world. And with more than 90% of Singaporeans being home-owners, it is little wonder that many of us have outstanding debts, at least a mortgage loan. While not all debts are bad, is there a way to live here without taking on unnecessary debts? Household Liabilities Source: Singstat As you can see from the above graph, 75% of our household liabilities come from mortgage loans, but there is still 25% coming from personal loans. While the amount of personal loans we take on has definitely dropped significantly from the years of 2011/2012, there was a minor spike at the start of 2017. Since January 2018, the new Credit Limit Management Measure will cap the additional unsecured credit that a financial institution can lend to a borrower whose outstanding unsecured debts exceed six times his monthly salary. While the government has done its […]
4 types of people who can benefit from a personal loan
When we need extra cash, many Singaporeans may prefer to use their credit card instead of opting to take up a personal loan. With the ease of getting a credit card, it’s no wonder this is an easier option. However, there are situations where credit cards just won’t work and taking out a loan looks like a smarter option. Here’s a look at how 4 types of people can benefit from taking a personal loan instead of using their credit card when they need some extra cash: 1. Entrepreneur More and more Singaporeans are attracted by the prospect of being their own boss and the flexibility entrepreneurship offers. But starting out on your own can be tough, not just to raise capital, but also to keep business operations in order. Small businesses will benefit from having cash to keep cashflow in order, hire new staff and expand operations. But the problem is it is difficult to get a business loan for a small business, so a personal loan could work in such a situation. While your business loan may come at a lower rate compared to a personal loan, the minimum amount to borrow may be higher, which can result […]
More and more Singaporeans are open to the idea of setting up their own company. Not surprisingly, the lure of a more flexible work arrangement, ability to be autonomous and the pursuit of more money are attractive reasons for Singaporeans to become entrepreneurs. But we also know that becoming a successful entrepreneur requires much hard work, guts and most of all, resources. Having the capital to start your business is one thing, but along the way, you might realise that you need more money to sustain the business. This is when a business loan can be helpful. While some may remain conservative and frown upon the idea of taking a loan, having the money can certainly help small businesses ease cashflow problems and stay in the black. Now, it might not seem like a good idea to go into debt the minute you have cash flow problems, but there are actually five excellent reasons why a business loan can be considered good debt and good for the business in the long-term: 1. Tide over unexpected expenses No matter how we try to plan and anticipate our business expenses, there are bound to be times where the unexpected can happen. A […]
Credit cards often get a bad rep but they can really work to your advantage if you are savvy and responsible in the way you utilise your cards. Having good credit card habits (e.g. paying your bills in full punctually every month) is instrumental in making sure that you stand to benefit most from what they truly have to offer. Still not convinced? Check out the five ways credit cards can help you save money below. We guarantee you will see credit cards in a different light going forward. 1. Some cards give you cash rebates Nobody would say no to getting cash rebates on their spending. How much cashback you can earn depends greatly on the credit card you hold. You can expect to save on things that you were already going to spend on if you use the right credit card when making payment, such as a cashback credit card or a rewards credit card that lets you redeem your points for cash rebates later on. 2. You can redeem rewards points for lots of things There are plenty of rewards credit cards on the market for good reason. While not all credit cards are made equal, rewards […]
Many of us may not think much about our credit score until the day when our loan/credit application is rejected. A credit score is a number used by lenders as a gauge of how likely one will repay his debts and the probability of going into default. It is an independent assessment of the individual’s risk as a credit applicant. It is thus important because it can affect the cost of your loans and whether the loan gets approved. How credit bureaus work Credit Bureau Singapore(CBS) was launched in 2002 as a private company owned by the Association of Banks in Singapore and information management firm Dun & Bradstreet. CBS collects information from members such as banks and financial institutions, as well from publicly available sources such as bankruptcy records. It includes your personal data, loan repayment history, closed accounts, credit card balances and credit limits. Banks will then use the data and credit scores to gauge whether they should lend you money, extend a credit line or charge you higher interest on your loans. Since most people will probably need to take a loan sometime in their life, be it a study loan, personal loan, credit card or mortgage […]
What Happens When I Do Not Repay My Personal Loan?
Because of the idea that people in debt do not go to jail, many people feel that it is okay to leave their personal loans to stew and earn interest because they feel that they cannot afford to pay it. In reality, when you do not pay your personal loans, you are opening yourself up to a bigger problem that will affect the rest of your life. To give you an idea of what you can expect, this is what happens when you do not repay your personal loan. Reason Why We Get Personal Loans A personal loan is significantly different from a specialized home, car, and business loan from the bank. A personal loan is riskier because the bank does not have definitive proof that the loan is meant to earn money, unless you say so. Even then, they will ask for collateral in case you fail to repay your personal loan. When you do not repay your personal loan, it means you are defaulting. What Are the Consequences When Defaulting Your Personal Loan First off, the bank is dealing with thousands of people who have defaulted their personal loans. You are not really an important target for their […]
When you take up a loan, it can be a secured or unsecured loan. A secured loan is when a borrower pledge his assets as a collateral for the loan, such that the lender has a kind of security/guarantee against the money he lent. On the other hand, taking an unsecured loan does not require any guarantee, but typically comes with a higher interest rate because of the risks the lender is taking. Some examples of secured loans include car loan and mortgage loans, whereas an unsecured loan includes personal loans, study loans and credit cards. While most borrowers typically look out for a loan that charges a lower interest rate, there can be other factors that you should consider as well. This includes the eligibility criteria, fees and charges additional to the loan, minimum loan tenor and prepayment penalties. Understanding Interest Rates Interest rates can be confusing because what’s advertised may not be the actual amount you are paying. One tip for borrowers is to always look out for the effective interest rate. The Effective Interest Rate takes into account the compounding effect of the frequency of instalments. The more compounding periods there are, the higher the interest. Licensed […]
3 Best Cashback Credit Cards So Straightforward Even Newbies Can Use With Ease
You do not have to steer clear of credit cards completely just because you aren’t sure how make them work hard for you. Some credit cards are designed to make things easy for consumers like you and I, while others on the market are fraught with complex series of hoops and challenges when it comes to letting cardholders earn and enjoy their rewards. Are you just getting started with credit cards? If so, you might want to consider the following three cashback credit cards we’ve rounded out for you. They are some of the most, if not the most, straightforward credit cards in Singapore. 1. The American Express® True Cashback Card The American Express® True Cashback Card is a fuss-free credit card that rewards you with a flat rate cashback on all your purchases, no matter whether you are spending on groceries at the supermarket, dining at restaurants or booking holiday travels online. This credit card lets you earn 1.5% cashback on literally everything under the sun and your cash rebates earned in a statement month will be automatically credited to your account in that particular statement month as a statement credit to offset your credit card bill. If you […]
It can be a daunting experience to face retrenchment. For those without much liabilities, they may welcome the small break they will get before getting the next job. But for others who have a mortgage loan to service and mouths to feed at home, they may feel dejected and depressed. For those who are stuck in shock, it isn’t the best time to take care of their financial matters since they may not act rationally. But in order to keep things going and put everyone at home at ease, a review of the current financial situation has to be done. Here are some of the common mistakes you need to be aware of. 1. Sell all your investments It may seem like a very logical step to sell all your investments in order to liquidate your funds. These include existing money in equities, funds, ETFs, investment-linked policies, endowment… you get the drift. But we also know that when you make an investment, the predicted returns are based on liquidating them only upon maturity. This is why you may want to take time to look at what you should and should not liquidate. For instance, cancelling your investment-linked policy may not […]
Looking to get your first credit card but not sure what to expect? Credit cards are different from debit cards from the way they work to how rewarding your experience can be. When used right and responsibly, you will be surprised how much you can save from using credit cards instead of debit cards or even cash. To start you off, here are some basic things about credit cards you ought to know before you rush off to get your hands on one. 1. How It Works When you use a credit card to pay for your purchases, you are essentially borrowing from the card issuing bank right from the moment you swipe your card. Whether or not this borrowing comes at cost depends on whether you pay your credit card bill in full and on time. With credit cards, the bank offers you a line of credit that you can use to pay for things first but as with all things borrowed, you will have to return the bank the amount you owe (i.e. the amount you have charged to your card). As long as you pay your bill off punctually in full, you will not incur any interest […]
5 Life situations where a personal loan can be helpful
Most people avoid borrowing if they can; after all, who wants to be in debt? There are in fact, legitimate reasons to get a personal loan. Not all who take out a personal loan are those who over-spend on their credit cards or have a gambling debt to settle. Picture a scenario here – Alex works as a technician and earns a salary of $3,000. He supports his wife and has a baby who has just turned one. With his salary, he is still able to save about $200 a month. Unfortunately, Alex met with a road accident while he is on his motorbike. Luckily for him, he is able to get away with a small injury, but he needs to take some time off work and has no insurance. Although his Medisave can cover some of his hospital bills, he still needed to fork out $2,000. Together with the lost income, he will need a small sum of money to tide him over this tough period. A personal loan could definitely help him here. There are a number of legitimate life situations where a personal loan can be of great help. Be it a personal loan from a bank […]
Are you intending to take your first step into the world of credit cards? Before you succumb to pressure and sign up for any random credit card there is at roadshows at the shopping mall or MRT station, it pays learn about the basics of credit cards we have in Singapore and what they have to offer to potential cardholders like yourself. Read on ahead and you might just figure out which type of credit card is more suited for your needs and lifestyle inclinations. 1. Cashback credit card As its name suggests, a cashback credit card gives you cash back on your spending. Think of it as a discount on practically all of your purchases. Some cashback credit cards are fuss-free to use in that it offers a flat rate cashback (e.g. 1.5%) on all your purchases with no minimum spend and no cap on how much cash back you can earn. On the contrary, those cashback credit cards that offer enticing cashback rates (e.g. 5%, 6%, 8%) usually require you to spend a minimum amount per month, say $500, before you are eligible to earn cashback at those high rates. 2. Air Miles credit card Air miles credit […]
Payday Loan vs. Personal Loan – Is there a difference?
Whether you’ve got an unexpected bill to pay or you’re short on this semester’s tuition payment, you need to find a source of cash quickly. In your search for a quick loan, you’re going to find both payday loans and personal loans. But what types of loans are these and is there a real difference? In this article, you’ll get a quick rundown of each one to help you determine which option makes the most sense for you. Payday Loan A payday loan is a relatively small, short-term loan offered by a legal moneylender. It carries a high interest rate and needs to be paid back in a matter of days or weeks, usually whenever your next paycheck is due. The amount you can borrow has to be less than the amount of your next paycheck which means you can usually only borrow a few hundred dollars. It’s sort of like getting an advance on your next paycheck and the advantage of that is that you don’t have to go through a credit check. You just need to bring some payslips with you to provide proof of income and show when you can expect your next paycheck. This is the […]