on Jun 5, 2021
There are instances where you may need a loan, be it starting a business, paying for your higher education, or any kind of financial emergency. A personal loan is highly sought after in Singapore and is typically an unsecured loan that does not require collateral. It can be a great option to help you meet your financial needs.
However, the application process for personal and business loans varies for different licensed money lenders. If you are a first-time loan applicant or have already tried but failed to apply for one, it can be a frustrating process, especially for those in need of quick cash. What can you do to increase your chances of getting your loans approved? How can you get access to funds from licensed money lenders in the shortest time possible? Here are some tips.
Tip 1: Maintain a good credit score
A credit score can make or break your loan approvals. It is a statistical number that a financial institution or money lender in Singapore would consider during the application process. It reflects your financial health and indicates the likelihood of you repaying or defaulting on your loans. The higher your credit score, the better your rate of approvals.
To maintain a good credit score, be vigilant about making timely payments for your debts, paying more than the minimum monthly sum if you can. By consistently making payments and not defaulting on your loans, it will reflect well on your payment history, thus boosting your chances of getting your loans approved. On top of that, avoid taking out multiple loans within a short period. The more debt you take on, the lower your credit score.
Tip 2: Have a steady employment profile
A money lending company in Singapore and licensed money lenders, in general, will need an assurance that you can pay back your loans. They will check your income history to determine whether you are maintaining a steady income. To increase your chances of getting your loans approved, try to have a steady employment profile and avoid frequent job changes if you are a full-time or part-time employee. If you are self-employed, the chances of getting your loans approved should not be affected if you are able to provide proof of income.
Tip 3: Start with a small loan and pay it off promptly
If you are new to personal loans or aren’t in a favorable place to apply for a large loan, it might be wise to start with a small loan. Applying for a bigger loan than what you need can be seen as risky to licensed money lenders and it can also impact your ability to meet other financial obligations.
Starting small might not be a bad thing if you can pay off the loan on time. This will improve your credit score and build trust between you and the money lending company in Singapore, thus boosting your chances of getting bigger loans approved in the future.
Tip 4: Consider alternatives to credit cards and banks
Since you are already at R2D Credit, chances are that you are expanding your options for a loan besides using a credit card or approaching a bank. R2D Credit is a money lender in Singapore. Our mission is to put our customers first and to offer an accessible alternative to anyone who needs loans in Singapore with our wide range of products.
Applying for a credit card or a loan from banks can subject you to more stringent processes and longer waiting times. Unlike banks, licensed money lenders usually work with a more straightforward application process. This can help increase your chances of getting a loan approved.
Here at R2D Credit, our goal is to be the top money lending company in Singapore, and we are committed to providing our customers with a fast and reliable service to meet their needs. No matter what your circumstances are, feel free to contact our team of financial consultants who can assess your financial needs and provide you with a solution.