on Oct 27, 2020
Ever find yourself requiring a small boost in funds? That’s where payday loans and monthly loans come into play. We share 5 useful ways that payday loan services and monthly loans help to complement your living.
1. They tide you through emergencies.
Nobody likes to be met with unanticipated and sudden bills, be it paying for car repairs without claiming car insurance, or paying upfront for a hospital visit before your medical insurance claims are processed. Sudden payments can threaten to upset our carefully planned finances for each month, especially when we have already partitioned a certain percentage for savings, utility bills and installments, as well as lifestyle spending.
Payday loan services help avoid a poorer quality of life through a quick injection of funds to tide you through emergencies. With the basic payday loan being exactly 1 month in length, they are perfect for avoiding such scenarios, while also providing peace of mind to focus on the emergency at hand.
2. They help you seize opportunities.
Paychecks are often credited at the end of the month, but sometimes cashflow or admin issues may mean that they get credited a week or two later. With flash sales occurring randomly, no one likes to miss a lucrative offer, such as over 50% off on a household appliance you’ve been eyeing.
In such a scenario, payday loan services come in handy, allowing you to rapidly tap into funds on the same day as your application and help you purchase your desired items. After all, the interest you repay is often much less than the savings you cashed in on, and you can fully service the payday loan with your incoming paycheck.
3. They are flexible.
The structure of both payday loans and monthly loans are simple, with payday loans being exactly a month long, to be fully repaid with interest. Longer loans, such as monthly loans, maintain the same format, with the total interest and principal to be spread out across an agreed-upon number of months.
It’s no surprise that payday loan services are popular for their flexibility and ability to address one’s needs. From paying a bill for visiting the GP through a payday loan, to paying monthly installments across 4 months for the new sofa in your living room; it’s up to you to decide the optimal way to utilise these loans.
4. They are swiftly approved.
Payday and monthly loans come with less requirements for approval, due to their simple and fuss-free nature. To tap into our payday loan services, Singaporeans and PRs only need to bring along their NRIC and Singpass details, and let the online records do the rest. For foreigners, you’ll be required to provide additional information, such as your passport, proof of employment such as your work permit, proof of income such as payslips, as well as proof of residence such as your tenancy agreement.
5. They protect your credit rating.
Your credit rating is essential for purchasing and enjoying a wide variety of things in life. Many of us will often require credit for various big-ticket purchases, ranging from the downpayment of your Singapore flat, to getting a mortgage. Failing to pay your existing loans in time negatively impacts your credit rating, making it hard to seek loan approvals at banks, or even apply for premier credit cards.
In contrast, loans from licensed moneylenders, including payday loan services, do not take into account your credit rating, allowing for an alternative that is easily approved, as long as you adhere to the terms of the contract. If you have a small loan that you need to service or risk lowering your credit rating, a payday loan is a useful alternative for the short-term.
Visit R2D Credit today to learn more about our payday loan services.