Close-up of loan application form stamped with 'Approved' in red ink

5 Important Things You Need To Know About Personal Loans

Life has its up and downs, and one of the biggest setbacks that it can possibly throw at you is one that is financial in nature. A financial setback, if not taken care early, will only prolong and bleed into other aspects of your life. However, not everybody has the privilege to take settle their financial predicament. Apart from not having the financial savings, one may also have a circumstance that may bleed their savings dry. In such cases, help needs to come from another avenue, and a viable avenue is to opt for personal loans.

A personal loan is a solution that can help you settle financial obligations that you otherwise couldn’t with the money that you currently have. Should you find yourself in a financial pickle, here are 5 things you should know about before filling up a loan application form.

1. Personal loan offerings differ from one moneylender to another

Based on where you plan on applying for a personal loan, you may get varying information, charges, and repayment terms. It’s best that you look around the different moneylenders that you can find, inquire about their respective offerings and compare them so you can find the best one based on your needs. Also, consider the reviews and feedback that their customers are giving them to ensure that they can really deliver the services that they claim to offer.

2. A good credit score is not necessary for a personal loan

When it comes to personal loans, most moneylenders in Singapore don’t necessarily require you to have a good credit score for you to be eligible for one. However, it could increase your odds of getting a better rate and a higher loan amount because they will take this as an indication that you are more than capable of paying back the loan that you applied for.

3. Personal loans don’t require collaterals

Unlike bigger loan types, you don’t have to put your house or car as collateral to get approved for a personal loan. Personal loans are often classified as ‘unsecured loans’, so just as long as you meet your chosen moneylender’s requirements and have the necessary documentation, you’re very much eligible to apply for one.

4. You can apply for a personal loan even if you already have an existing loan

There appears to be a common misconception that you can only have one type of loan with a certain moneylender. While this is true for some moneylenders, established and reputable moneylenders would usually allow you to have multiple types of loan under your name with them – provided, of course, that you meet their requirements.

5. Borrow only what is necessary

Given that the approval rate for application loans is high, some people fall into the temptation of asking for a loan amount that is higher than what they actually need. Don’t fall into the same trap because there’s always a price for everything, and in this case, it’s the interest rates. Most people overlook the interest charges that they incur, which eventually snowballs in effect the longer they fail to repay their loan. In fact, some people end up paying more for interest charges than the amount that they initially borrowed. As such, take the safer route and only ask for a loan amount that you are in need of.

Conclusion

If you happen to find that your finances are running tight at the most inconvenient time possible, applying for a personal loan with a reputable money lending agency can help you immediately get past your struggle.

If you’re looking for a reputable licensed money lender in Hougang, look no further! At Goldstar Credit, we take pride in being a reputable personal loan moneylender Singapore that offers several loan packages to help you ride out the storm. Apart from our easy and straightforward loan application process, we also make it a point to make sure that our repayment terms are as flexible as they can get.

So give us a call at + 65 6384 0088 to speak to one of our loan officers to learn more!

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