How to get a personal loan from licensed money lender?
Personal loans from licensed money lender are everyone’s saving grace for many situations. However, not all get easy approval due to a poor credit score. A poor credit score or history reflects that you failed to repay previous loans as agreed from other money lenders. Continue reading for this article will help you improve and maintain a good credit score.
Factors Affecting and NOT Affecting Credit History
First, let us take a look at what things hurt and not hurt your credit rating. When you apply for personal loan, the licensed money lender will go through your background information. Here’s a myth: Your status such as whether you’re single, married or it’s complicated does not affect your credit score. Your age, how you use your debit card also has nothing to do in making your rating higher or lower. However, your current money in the bank, employment status, and salary may be considered when deciding for your loan’s approval.
Licensed Money Lender Tips to Improve Credit Score
Follow these tips to get and keep an excellent credit rating. This way you will not waste time submitting loan application but getting a no in the end.
1. Avoid paying dues late
Indeed time is gold. Set the alarm or reminder of any card days or weeks before your due date. It is still best to pay on or before the deadline but if circumstances forbid you to do so, do your best to pay within 30 days of the due date. Most licensed moneylenders would still accept late payments but prepare yourself for penalties and tainted credit score.
2. Don’t get personal loans from multiple moneylenders all at once.
If you do this, you are telling the licensed moneylender that you are not confident enough with your credit rating that you wait whoever approves you first. What you can do is survey different lenders, study them and then decide which one is best for you.
3. Get quotes and compare licensed moneylenders.
Many moneylenders give low-interest rates but will overwhelm with you different charges like administrating fee, prepayment penalties, random maintenance fees, and more. Again it this will all boil down if you can pay them or not. If not, it will drag your credit score down.
4. Get other non-banking licensed money lenders.
Financial institutions accredited by the Monetary Authority of Singapore are also good options for personal loans. Just like the banks, they also evaluate your credit rating and calculate risks. But they may have other loan settings that can accommodate your needs.
Taking care of your credit rating is the most important thing you should be mindful about. Aside from all legal implications of not paying personal loans from a licensed money lender, your credit score dictates your reputation and how much moneylenders can trust you. You’ll never know when you would need a big amount of cash and get a loan so take your credit history seriously. If you follow the tips we gave you above, you most likely will get the approval you are waiting for.