Sometimes we encounter offers that are too good to be true and most of the time they are. One of them is getting a call from a phone representative offering you a “pre-approved” personal loan. Personal loan are borrowed money which may lead to being buried in debt if not managed correctly. When getting a payday loan, there are certain things you need to watch out for to avoid falling deep into debt.
Here are top 3 things you need to look out for when getting an ocbc personal loan.
These are lenders who charge high interest rates and are often operating under illegal procedures. Loan sharks are people or organizations that offer loan through an easy approval process. Often, these lender target clients who are already illegible for loans and have a need for cash. Try to find a lender who will require you to go through proper qualification process. This good qualification process will benefit both the you and the lender.
When you are dealing with lenders, avoid transacting with lenders who prefer to deal with you online. If they insist that you submit an application through online, then it should be your sign to back out. A licensed money lender singapore will provide you an option for applying for a loan. Some illegal lenders push you to apply online so they can capture your personal information and use it for illegal actions.
One thing you should watch out for are lenders who require you to pay upfront transaction fees. These types of lenders are scams which steal the borrowers’ money through upfront fees. Once payment of the fees has been made, the lender will advise that the money will be ready in a few days. Getting in touch then becomes impossible.
There are several things that you would need to look out for when getting the best personal loan in singapore. Loans is a tricky business that is why there are a lot of scammers who engage in it. Take preventive measures to ensure that you have covered all the issues and concerns.
A personal loan is one of the easiest loans to get approved on. This is why it is the most viable option to explore when you are looking where to get money to address different needs. But with all process and paper work that needs to be done when applying, this article will help on some tips upon getting a personal loan.
Here are 5 ideas that may help you when considering a personal loan.
Find your purpose for the loan.
Identifying the purpose of your loan definitely helps maximize the choice of taking a personal loan. If you choose to take a personal loan without primarily identifying what it will be used for can cause you to spend the money on other matters that may not help your need.
Look for a lender who will be your partner.
It is very critical to find a lender who is easy to approach and whom you feel comfortable with. Also, lenders have different offers. Try to find a lender who can offer you the best deal. Sometimes a lender can lower the interest rates that it would be hard say no.
Read the Terms
Make sure you read the terms and conditions that are attached to your personal loans. Try to clarify if you have questions about the term and any fine print that you may need to watch out for. The terms and conditions can be for your favor if you know what they are and what they can do.
Watch your credit score.
Watching your credit score is quite important. This can help you get an advantage over getting a personal loan. Having a good credit score actually increases the chances of getting on the maximum loanable amount. It also helps you get approval faster on insurance, credit card and other loans.
If you plan on getting a personal loan, avoid getting a loan if you have an existing one or avoid a new loan when an existing personal loan is in place. Overlapping personal loans only increases your obligation to pay.
Credit Cards are one of the most misused financial tools today. There are a lot of people falling into the trap of misusing their credit cards and often end up having a huge debt. This is actually where the problem starts. With the huge debt that one has to manage, the income that they have is being used to pay for debt and leaves the individual unable to pay for their immediate needs.
Being in a burden of debt pushes the credit card holder to use the card for immediate needs which increases the amount of debt. It becomes a cycle for the individual which makes the debt harder to manage. Here are a few tips on how you can manage your credit card.
Never use your card unless you can pay for it in cash.
One rule of thumb that is definitely effective is do not spend using your card if you don’t have enough cash to pay for your purchase. Your credit card should help you for convenience. You need to make sure that your reason for using your card is because of not bringing a large amount of cash in your wallet or purse. Be sure that you can pay off the amount in your card soon as it becomes due.
Avoid using your card for cash advances.
When you make cash advances in your card, you are actually borrowing money from the bank. And with all loans, an interest is being charge for the amount you borrowed. Cash advances often charge high interest rates that become hard to pay especially if you don’t have enough cash flow to cover the cash advance made. It would be wiser to look for a cash loan that yields low interest rates.
Pay more than the minimum amount due.
Once you have noticed that you have an amount in your card that you know you can’t pay the entire amount due, stop using it. Your next move would be to pay more than the minimum amount due to ensure you are paying off the debt slowly.
Sometimes personal loans can turn into debt that becomes hard to manage. Like any other loan, this is an obligation that creates a dent on your income. When managed incorrectly, this dent may turn into a burden where your total lifestyle can be affected. Managing personal loans require a plan and discipline to execute the plan.
Before making a personal loan, we should assess the need for getting one. A personal loan may not always be necessary but sometimes, some people apply and get one. It may be for something that is actually not a need but a want. The first step of making a personal loan should be asking yourself what you are going to use the money for. Knowing why you need the money will reassure yourself the commitment to pay for the monthly amortization for the term of the loan.
Once you have identified the need, you would be needing to create a plan on how you will deal with the loan. Identify how much you are going to need to pay off the loan. Which income will the payments be coming from? Will the income be in place during the term of the loan? How will this loan affect the other obligations? These are some questions you will need to identify to help you create a plan in making sure that you complete the payment.
After making sure that a plan has been created, you will need to adjust your spending. Most often, people fail to adjust their budget and expenses. When you are living off your income on a monthly basis, you will need to make sure that you adjust your spending habits. Paying off a loan requires better financial management on other matters.
Finally, you need to make sure that you don’t get another personal loan when you are not done paying off the first one. Overlapping loans can often lead to mismanaged income. Mismanaged income often leads to debt. Avoid multiple loans to avoid having too many financial obligations.
Getting into business requires money. Growing your business requires even more. One good source of getting your funds would be through a business loan. A business loan is a type of loan where the owner or an organization applies for a loan that would be needed to pay for operations, expansion, research and development, purchases of inventory or equipment or even help consolidate multiple loans that the business may already have. Business loans can be a business owner’s greatest ally or greatest challenge. With proper use of the funds, this will help the business owner achieve the goals they want to achieve through a start up business loan singapore.
If you are a business owner, sooner or later you will find yourself trying to get a loan to support your business. Every business owner should have a good financial plan when they decide to take out a business loan.
But why does a business owner need to get a business loan?
There are two main categories which you need to identify where your business is in when making your business loan. Are you getting a business loan for capital expenditure or are you spending for operational expenditure. Knowing which category your reason is for the loan will help you plan accordingly.
Capital Expenditure – this type of expenditure addresses the growth of your business. Being under this category is great news for the business owner. It means that they are expanding and that they are in a position where growth is a possibility. Capital expenditures include purchase of equipment, inventory, hiring of manpower, or even purchasing property to expand location. Capital expenditures create potential growth and well created financial plans should be in place when taking out a loan for this.
Operational Expenditure – This type of expenditure address how the business operates. This type of expenditure would address areas such as refinancing, building repairs, or simply increasing funds to address operating costs.
By creating a good financial plan should help you address the actual concerns that your business may have.