What do you do if an unexpected situation happens but the cash available is not enough to handle the problem? If the funds are needed urgently, a cash loan is one of the best options to fill the gap.
This post is a comprehensive guide to cash loans in Singapore to help you answer the question, “Are they good for you?”
What is a cash loan?
A cash loan is an unsecured type of credit that people in Singapore take to seal financial gaps in their lives, especially when they are faced with an urgent need for cash, such as emergencies. Because they are unsecured, you will not be required to provide collateral before the loans get approved.
Unlike bigger loans, such as personal loans or mortgages, which can run for many years, cash loans’ term limit is relatively short. Therefore, they offer a good method of improving the credit score. For example, you might want to use cash loans to improve your credit mix and score.
Can I get a cash loan in Singapore with bad credit?
Because cash loans are unsecured, lenders primarily rely on applicants’ credit scores to determine whether they qualify or not. If you have a poor score, you might still qualify to get a cash loan, but it is likely to come with high-interest rate. This is why you should try as much as possible to have a good credit score. One way of achieving this is to get your credit report to identify possible errors and correct them before submitting an application.
How do cash loans in Singapore work?
Cash loans work just like larger loans in Singapore. Once a lender approves the loan, funds are sent to the applicants account and have to be paid together with interest. Therefore, you should review the monthly interest rates to determine the money to pay towards clearing the loan every month. However, the monthly interest rate does not show the correct picture of the loan. A better method of determining the cost of the loan is using the annual percentage rate (APR) that includes all charges and fees that go into paying the loan every year.
What you need to know when applying for a cash loan?
If you are looking forward to borrowing a cash loan in Singapore, there are a number of options that you can turn to, including payday loans, small loans, and microloans. As you pick the preferred loan option, here are other crucial things to think about:
- Why do you need the money?
- How much cash do you need?
- What is your repayment ability?
- Do you have other forms of debts?
- What is your correct credit score?
- What alternatives do you have?
The best way to apply for a cash loan in Singapore
Cash loans in Singapore provide an excellent way to access quick cash, but how do you apply? Because of the long list of lenders in Singapore, checking through their terms & conditions and applying to all of them can be a major challenge. This is why using lender comparison sites, such as Lendela is a better option. Lendela submits your applications to multiple lenders, helping you to easily narrow down to the one with the best terms and conditions. Here is the process of applying for a cash loan in Singapore through Lendela.
- Visit Lendela website to make a short application.
- Get offers from different lenders.
- Lendela helps you to select the best and book you an appointment.
- Sign the cash loan agreement.
Applying for a cash loan in Singapore does not have to be challenging if you work with Lendela. They make it easy, fast, and convenient. Once the loan is approved, ensure to stick to the agreed payment plan until it is cleared.