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Tips On Getting a Personal Loan

By | June 16th, 2017|Categories: Loans|

Personal loan, like any other loan, is a form of borrowed money. The lender allows a borrower to use their money and pays it within a specified period with an agreed interest payment. This interest payment is expressed at a rate to be paid by the borrower against the principal amount borrowed. Personal loans are unsecured loans that do not require any collateral. This allows the processing of personal loans quick and easier compared to other types of loans. It requires minimal documentation and less complex supporting requirements.

Getting a payday loan may seem easy but mismanaging the loan can cause consequences that can lead to getting deep in debt.

Here are a few points when applying for a personal loan

  • Plan and have a goal

Like any other matters that involve finances, a plan must be necessary and a goal. This will help manage the debt easily. Your plan will help you address any issue that may come your way during the term of the loan. Having a plan and a goal allows the borrower to have a guideline in case unexpected circumstances arise.

  • Compare Lenders

With competing banks and other financial institutions, a licensed money lender Singapore will try to attract clients through best loan offers that they can provide. It is best to compare lenders as you will be partnering with them for quite some time during the term of the loan. It is necessary to find a lender whom you are comfortable working with. Lenders also offer personal loans differently. One may offer a lower interest rate but a shorter term while the other offers the loan the other way around. It is necessary to know which one fits your needs and capacity to pay.

  • Understand the Computation

When getting a best personal loan in Singapore, it is very important that you understand the concept behind the computation of your proceeds and the interest payments that need to be paid. Knowing your numbers will allow you to make the right decision regarding your personal loan.

Personal loans are not all bad. There are cases where getting a personal loan is truly necessary and beneficial as long as proper management is in place.

Questions You Should Ask Before Getting a Payday Loan

By | April 6th, 2017|Categories: Loans|

Payday loans are loans where a lender grants the borrower a certain amount of cash that can be used by the borrower for any purpose. There is no specific reason which the cash can be used. Payday loans have gained a bad reputation because of the very high interest rates it gets offered with. Payday loans can often yield between 350% to 400% interest annually or annual percentage rate (APR). This is why most people and financial advisers discourage getting a payday loan.

Despite its bad reputation, many people still borrow under this type of loan because of how easy it is to avail the loan compared to other types of loan. And even to some, it is an effective method. Understanding how a payday loan works and what is needed can help you make a decision if it is right to get a payday loan. You just need to make sure you address these questions:

  1. Is this the only way I can generate the cash I need?

Getting a payday loan is not bad. Getting a loan that would be hard for you to pay off is. You need to make sure that you have exhausted all means to generate cash before resorting to getting a payday loan. Some would even advise that it is better to borrow money from a friend rather than borrowing for a payday loan. Most friends don’t require an interest to be paid unlike a payday lender who will charge a very high interest rate. Make sure that you borrow when all means of generating cash is no longer feasible.

  1. Do I have enough money to pay off the loan in full upon due date?

Making sure you have enough money by due date is one thing. Making sure you have enough to last you the entire period after paying off your debt is another. It is important to consider that once you pay off your debt in full, it creates another shortage in your income. If you do not have enough cash to pay off the loan and to support your expenses throughout the period, you may end up rolling over your debt and increasing your total amount payable.

Asking yourself these two questions will guide you how necessary it is to opt for a payday loan.

Questions You Need to Ask When Getting a Mortgage

By | March 11th, 2017|Categories: Loans|

Mortgages are loans that help a person or a business to purchase a property at an affordable price. The person or business, also known as the borrower, will apply for a mortgage from banks or other financial institutions. Once approved, the bank or other financial institution, also known as the lender, will lend the borrower an amount equivalent to the purchase price of the property. This amount will then be paid back by the borrower in the form of an amortization.

When a borrower plans to get a mortgage to purchase a property, it is very good to ask this questions before applying for one.

  1. Do I know my numbers?

It is very important that the borrower is aware of the numbers involved in the mortgage. This includes the charges, cost of equity, interest rates, amortizations, etc. Knowing these will allow you to manage your mortgage better and make decisions that will benefit you eventually. Because of the nature of the loan being a long term, it is necessary that you can foresee the effects of interests and other charges that may eventually affect your payments.

  1. Do I have a source of where to get the loan payments?

This is very critical. If you are getting into a long term mortgage, you need to assess the stability of the source of your income. If you are a part time employee who may be terminated anytime, you might have to re-think of finding a more stable source of income.

  1. Do I have a back up plan?

Being a long term obligation, it is very uncertain on what can happen during the coming years. Having the right plan on hand can help manage the mortgage. Having a back-up plan on unforeseen events will definitely be a good move.

Keeping these three questions in mind will help you when you are planning on getting a mortgage. It is good to assess yourself and the actions you are taking to make sure that everything runs smoothly.

Questions You Need to Ask When Getting a Business Loan

By | February 19th, 2017|Categories: Loans|

So you are getting excited and you have that great big smile with you everywhere you go because of a business idea that you are very certain that would work. But then it comes to a point where you realize you need to raise cash for you to be able to make your business happen.

You have two options. One, apply for a business loan which can help you generate the cash you need and two, look for investors who can put in cash that you can use to start the business. If you are not too keen of having partners over your business idea, then the first option will be your choice. But before you start driving to the bank and start filling up those forms, you need to understand and ask yourself some questions that can help you determine if it is the best choice to get a business loan.

Here are some questions you need to answer to quickly assess the need.

  1. Do you have a completed business plan?

Aside from being a requirement by the bank, a business plan is a core requirement for you to run your business. This will be your guideline that you can look back to once your business encounters some concerns. Having a business plan will help identify the small details that you need to take action of to ensure that your business is moving forward as time passes by.

  1. Do you have a source of income to pay for your loan?

If your business is just on the initial phase of operations, most likely your business will be struggling to get clients and will not generate income during the initial period. You will need to have a source from which you can use to pay your monthly expenses. Make sure this is part of your business plan and you have a back-up plan just in case.

  1. Do you know your numbers?

Numbers mean your forecasts. This is very simple but often the most neglected. When you know your numbers, you have a very high chance that your business plan will work.

Questions To Ask When Getting a Credit Card

By | January 15th, 2017|Categories: Loans|

Having a credit card is a great responsibility that most people take advantage of. Without properly managing your credit card and taking full responsibility of the effects of having debt can greatly affect your finances.

Credit cards are very useful and totally help in keeping your spending efficient. Managing your transactions through your credit card is a good way to keep track of what you are paying. But to some who disregard the value of a credit card, they often end up in using the credit card without properly monitoring the spending. This is when it starts to become a problem. Debt starts to accumulate and managing it becomes a struggle. Rolling over credit continues and before the holder notices it, he’s already deep under debt.

Here are a few questions you can answer to guide yourself when is it time to get a credit card.

  1. Am I liquid enough to pay the full credit limit of the card?

When you decide to get a credit card, you must have enough cash that can pay the full credit limit of your card. Otherwise, request the credit limit of your card to be lessened to an amount you can pay in full.

  1. Am I an impulsive buyer?

Credit cards have been known to encourage holders to spend beyond their means. Knowing if you are a person who buys on impulse or knows how to check if the purchase is necessary will greatly help you in managing your debt at a minimum. Remember, charging purchases with your credit card means you are using someone else’s money which you will eventually pay with interest, in this case, the bank’s money.

  1. Do I have a consistent source of income?

When you plan to own a credit card, it is very important that you have a source of income which you can pull money from to pay your purchases. Rolling over your credit is highly discouraged and it is advised that you pay all your purchases from the card in full when the statement arrives. This helps you avoid paying for unnecessary interest rates.

Having these questions in mind will help you manage your credit card better when you do decide to get one.

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