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Loans for bad credit: How to get a good credit score

Close-up of man's hand holding smartphone that shows a 'Good' credit rating
Close-up of man's hand holding smartphone that shows a 'Good' credit rating

Having bad credit can make it really difficult to get a legal loan in Singapore. That’s because lenders use your credit score to guess how likely you are to repay the money that you’ve borrowed. R2D Credit is a legal money lender in Yishun that makes it a point to help people in need of financial help, with loans for bad credit.

While you seek a loan that works for you in these tough times, you can also take little steps towards getting a good credit score. That way, you’ll have more loans to choose from if you encounter a financial emergency in the future. You’ll also be able to get better loan rates on big milestone purchases, like a car or a new home.

Pay Your Bills on Time

In order to be seen as a good customer, one of the easiest things you can do is to make sure you don’t ever miss a deadline on credit card or bill payments. Not just making late payments, making partial payments can also contribute to a decreasing credit score.

If you’re finding it difficult to pay your bills, think of all the ways in which you can reduce your expenses to be able to pay them off in full. And if you’re simply too busy and tend to forget to make payments in time, try setting a recurring monthly reminder on your phone so you’re always punctual.

Watch Your Spending Habits

One of the things that are looked at before you take a legal loan in Singapore is your recent expense and usage patterns. If you’ve been making a lot of large purchases recently, this makes it harder for moneylenders to predict your usual spending patterns and your ability to repay the loan.

But that might feel unfair, especially if you’ve had to make many sudden big purchases that you may not otherwise have. In that case, simply look towards loans for bad credit.

It’s also prudent to watch your spending habits so you’ll avoid going into debt. Cut back on luxuries and big expenses for a while, if you can. And if you’re a person with many small expenses that just seem to add up over time, it might help to download an expense tracker app on your phone so you never get caught by surprise.

Cut Back on Credit Cards

Sometimes, banks offer such irresistible deals to attract you as a credit card customer. It’s better to hold off than to send your applications in for all of them. If you have more credit facilities, you might be putting yourself in a bad position by making it look like you’re overextending yourself.

Instead, you can focus on not having a credit card collection. Sure, you might miss out on some card discounts, but it’s worth it to maintain a good credit score. If you have cards with overlapping benefits, pick one card to use and cancel the other. Besides, consolidating your spending on a single card might mean you get to clock heightened benefits on it!

Your Credit Score Will Improve in Time

The calculation of your credit score depends on the last 12 months of your repayment history. That includes closed and defaulted accounts. So by finding a system that works for you to manage your credit, you’ll be able to rebuild a rock-solid credit score in no time!

The credit remediation process can be a slow one, and you’ll need to be both patient and disciplined, making slow, steady progress.

What You Can do While Improving Your Credit Score

While you work on building a good credit score, don’t worry about not being able to take loans for urgent financial needs. You can always rely on a bad credit loan. One example of a bad credit loan is a payday loan, a type of loan usually based on your paycheck or bank account so you can pay the loan back on your next payday.

If you need to take a loan with bad credit, you can seek the help of R2D Credit, a legal money lender in Yishun. Look forward to loans that cater to even your most specific requests, and flexible repayment schemes that work for you. Speak with the team at R2D Credit now.


The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

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