How To Get A Personal Loan With Bad Credit In Singapore?

We’re living in a world run by money, and almost everything that we do and need needs money for it to go through properly. But what if we run short of it? What to do? Well, good thing there are personal loans in Singapore and the world over. It is good to mention that there are different plan types for personal loans.

These help fund expenses and consolidate your existing debts without using any credit cards. There are even some unsecured loans where you don’t have to turn your car or home as collateral.

Unfortunately, it’s hard to get a personal loan if you have got a poor loan credit because this means you’re most likely to not be capable of repaying your credit card debt Singapore on time. But that doesn’t mean there’s no chance of getting a successful application. It’s just that you have fewer loan choices.

Hands open the empty purse after calculating the bill

What does bad credit mean?

Having a bad credit score refers to your Credit Bureau Singapore (CBS) Credit Scores. It is a scoring model that considers bad loan credit to anyone below a certain threshold, with a sliding scale of 1,000 to 2,000 points with 1,000 is the lowest credit rating while 2,000 is the highest credit rating.

Your credit scores are graded between AA to HH. AA being the highest and HH the lowest. Grades BB and CC are indications of late repayments and delinquency, and grades D and below are caused by defaults. 

Singapore banks will seldom vary their interest rates based on your bad credit score or credit history, though they will give you a smaller loan amount or reject your application outright.

This model is widely used in Singapore to evaluate the eligibility of borrowers. Your main goal is to have a higher loan credit rating so that it’ll be easier for a customer to avail of a loan. Having a high score means that you’re more capable of paying off the full loan payment on or before the deadline. Most licensed lenders in Singapore will approve your application if you have good credit.

Credit rating, pen, glasses, notebook and calculator on a yellow table

Can you get a personal loan with a lower credit score?

If you have a credit score below CC, that means that you have defaulted on your loan repayments before. This makes it harder for you to avail a personal loan and get new credit. But that doesn’t mean getting a loan in Singapore is difficult. In fact, you can still get the best personal loan Singapore.

In fact, there are a number of urgent loan Singapore providers that cater to those having lower credit ratings. Learn the requirements and their terms first so that you know the payments to make. They are important for a customer that has poorer credit scores. The usual loans in Singapore that accept ratings of CC and below are mostly unsecured credit cards that have high APR and low credit limits.

Will banks give loans with bad credit?

Businessman calculating costs and holding cash notes.

1. Apply for a minimum amount

Yes, banks can consider giving you a loan as long as you apply for a small amount. Low scores usually dictate the inability to repay debt. Thus, borrowing a small amount lowers down the risk.

You can also try getting a smaller personal loan first. And then pay back with the debt in as early as possible, and then apply for a bigger loan. This helps improve your credit scores.

White blocks with the word debt free on table

2. Settle outstanding debts

Do you have an outstanding loan? Settle your current debts and don’t get a loan application from lenders if you still have an outstanding balance. This is especially true if you’re going to borrow a big amount and you have poor credit. Finish off your payment first.

There are also some banks that consider restructuring your current balance. This means that they can lower your interest rate so that you can pay your outstanding balance and apply for a bigger loan. Besides, this is a nice way of improving your credit score.
 

Which lender is easiest to get a personal loan?

There are a number of banks where you can get a personal loan easily, even with a low credit score. However, the process can be so complicated or the interest rates can be higher. There are certain bank loan products that maximize rebates on daily expenditures without any annual fee. Some will even allow you to earn rebates when you spend. However, since they will look at your credit scores, you will have to be careful with your scores.

That’s where a licensed moneylender comes in, with 365 Credit Solutions being one of the best ones. You can even get a best personal loan Singapore with an uninsured amount of $10,000 to $50,000 and repay it by monthly instalment or depending on your terms. This is your best choice if you have a bad credit and want to have low personal loan interest rates and still have your rights reserved.
 

Why choose 365 Credit Solutions?

365 Credit Solutions is a licensed money lender, one of the best choices if you’re looking for a personal loan in Singapore that has a low-interest rate. It’s great for personal loans with bad credit because you don’t have to worry about getting huge interests.

365 Credit Solutions is also one of the most credible moneylenders in the industry because it has been credited by the Registry of Moneylenders.
 

The Bottom Line

Nearly all financial institutions will look at your credit history when you send a loan application. You may be discouraged in case you have a bad credit score. However, there are still many financial institutions that lend to people with lower ratings like licensed money lenders – 365 Credit Solutions. This will allow you to obtain funds you need even if you are unable to take out a personal loan in Singapore.

Head on to our website to find out more!

Should I Borrow Loan To Pay Off My Credit Card Debt Singapore

Getting another loan to have enough funds for a debt on your credit card is an unorthodox method of paying off debt. It does, however, help you how to save money in Singapore in the long run. A personal loan is a good option in paying off credit card debt.

Can I get a loan to pay off credit cards?

What licensed money lender usually do is they first check your credit score and make sure that you’re able to repay the loan in the stipulated time. 

They will also check your cash flow and ensure that you’ve got a stable source of income for you to qualify for the credit card debt loan repay process.

You should also be considered to be a low-risk client, because if not, then they won’t accept your loan application. 

Frankly speaking, it is hard for you to borrow and get a loan to pay off credit card balance or loan credit card debt. This is especially true if you’ve got a history of late personal loan payment and maxed out credit limits.

You could, however, try having a cosigner to qualify and borrow a personal loan. But this puts their credit at stake. You can also take care of some of your existing credit cards balance first by paying off smaller personal loan credit card debt amounts.

This improves your credit score slowly. But it’s better than having no improvement at all, especially if you need the best personal loan Singapore soon. And the same goes for unsecured loans. 

Also, expect high-interest personal loan rates if ever you qualify and borrow personal loan Singapore bad credit.

Is it a good idea to take out a personal loan to pay off credit cards debt?

Getting a personal loan to pay off your credit balances is an option, but is it a wise choice? Before proceeding, it’s first important to know that you won’t get a low-interest rate personal loan if you’ve got a 0% credit APR. In simpler words, you getting high-interest personal loan rates, making it more difficult to pay off credit and loan.

Thus, it’s better if you wait until your 0% interest personal loan rate expires. That’s then the time that you get a personal loan to pay off your credit card debt balance. And be careful of money lenders because most charge a loan interest  rate of 35%.

Also, put origination fees into consideration when borrowing for a loan. It’s best that you stick to paying off your credit balance first instead of getting a rushed high-interest personal loan that’s to be paid in a few months.

There are, however, a few credible credit unsecured personal loans lenders such as 365 Credit that offers justifiable rates and varied loan tenure durations for paying. This gives you a lot of loan choices on how or when you’re going to pay off your loan and complete your payment.

Pay online using credit card

How can I pay off 5000 credit card debt fast?

What’s great about a personal loan is that they can be paid off over various time lengths. The amount you pay monthly also varies on your personal loan tenure duration.

This means that you’re going to spend less on the total personal loan repayment amount if you were to pay higher amounts monthly, instead of paying the minimum loan monthly amount. So, the technique here is to pay off large amounts of loan fast. Pay off credit cards debt in the highest possible loan amount you can afford to speed up credit card debt repayment.

But make sure that you can pay off your debt and complete the personal loan payment for the next coming months. Not doing so puts your credit rating at risk.

Getting to borrow a personal loan can also make you credit card debt-free faster if you’re going to spend it on paying off your credit debt. But make sure that you spend within your capability and not get new personal loan balances from your other credit cards.

Getting to borrow a personal loan and spending the money to pay off credit card debt is good if you have full control over your personal budget. But if not, then you end up owing more for debt consolidation.

OCBC 365 Credit, is, however, a great debt consolidation plan option if you’re wanting to get a new credit cards. It maximizes rebates for your daily expenditures. Take for example its 6% rebate on meal deliveries and dining, 3% on utility bills, groceries, and transport, and up to a whopping 23% for fuel costs.

You can even get up to S$80 monthly or S$960 annually for expenditure payments of S$10,000 in a year. Not to mention that you are also entitled to get a fee-waiver so you don’t have to pay for annual fees. It’s a great strategy if you’re going to spend around S$2,000 monthly in payments.

Having these incentives means that you get to save money because of the cashback bonus payments. This makes it faster for you to pay off outstanding personal loan debt fast with payment. Also, take note of your balance transfer to get a step by step updated personal loans status every month.

You can click here to compare and know more about 365 Credit and what payments to make.

Should I take a home equity loan to pay credit cards debt?

Home equity is another choice to make to pay off credit cards debt or debt consolidation loan balance. But it poses huge risk, especially that your home is used as collateral for your loan payment. However, it does have its own advantages and payment disadvantages.

You can compare them here: 

Pros

  • Home equity loan interest rates, as well as those of home equity lines of credit,  are lower than the rates given by credit cards. This makes it a great loan choice strategy if you want to get the lowest possible rate and pay off credit card debt easily. Be sure, though, that you can repay it so that your home or collateral property won’t be embargoed.
  • The interest for home equity loan payment can also be considered tax-deductible depending on terms of having to pay off and repay your credit card. This isn’t the case for credit cards interests and personal loan when repayments happen.

Cons

  • Getting to choose home equity means you risk losing your home and having your property foreclosed if you fail the payments.
  • You could end up having higher loan and credit card debt when you compare if the value of your home drops.
  • Loan tenures are long to pay, usually 10 years or more, depending on the monthly payments plan you choose and compare.
Moneylender Agent

Conclusion

With this being said, it’s clear to say that borrowing loan to pay off your credit card is a logical choice so that you won’t get higher debt especially if your credit’s interest rate is high. 

Be sure, though, to know all the details regarding the loan you’re getting, as well as your credit rates.

If you’re planning to get one, it’s best you try out 365 Credit Solutions.