Payday loans can be very helpful when unexpected expenses arise in the middle of the month where your finances can be a bit on the rough side. Waiting for a few weeks to get the paycheck is not something that everybody can afford to do. Thus, it is best that you take matters into your own hands.
Looking for urgent money won’t be a problem in Singapore since the money lending industry is huge in the country. Therefore, choosing the best payday loan among an abundant amount of lenders can be harder.
It essential that you follow your own pace to carry out some research on the best deals that suits your needs. There are tons of information on the Internet that you can make use of. Surf through the web like Google and do your reading.
Read through the reviews given by those who have taken loans from the lender you are seeking. This way you will be able to narrow down your search to a specific lender that can offer you a loan deal that appeals to you best.
Provided below are key points you can take into consideration when choosing a money lender that is perfect for you;
Choosing a lender with credibility defined by their experience and expertise can be a crucial step. A credible payday lender will make sure that you are provided with the best service that has your interest at heart. To know whether a money lender is credible or not, provided below are the characteristics a credible lender should have;
- Has a valid money lender license given by the government
- Has been in the industry for quite a long time
- Has positive feedbacks from previous customers
Due to the heedless charges some licensed money lenders make and the huge number of loan sharks available in the country, Singapore’s Ministry of Law has come out with a strict set of rules and regulations to regulate the operation of money lenders. The rules and regulations came into effect in October 2015 in order to protect the rights of borrowers.
Legally licensed money lenders can be trusted because the services they provide you have been constructed to meet the legal requirements set by the government. For instance, borrowers can apply for a loan only through online registration or visit the physical office of the lender.
Thus, if you ever receive text messages or phone calls offering a loan deal without having to meet up, there are high chances that you are dealing with a loan shark pretending to be a licensed money lender.
3. Terms and Conditions
The terms and conditions licensed money lenders list down for you to sign will be a legally binding contract. For this reason, it is vital that you give them a careful inspection.
Terms and conditions usually include three subjects; the amount of loan you are taking out, the interest rate you will be charged with and the repayment plan you need to follow. Go through the terms and conditions set by each payday loan offered by a money lender and come out with a verdict on which one meets your needs best.
A good money lender that prioritize your best interest should be willing to adjust the terms and conditions based on your needs.
4. Interest Rate
When it comes to borrowing money from money lenders or conventional banks, borrowers can never run from the responsibility of paying interest fees. However, you do have the capability to ease the burden of interest charges by looking for a money lender that offers a deal with a complimentary interest rate.
This is crucial since lower interest rates will make it a whole lot easier for you to repay the loan. To find a money lender offering the best interest rate, take note in the tips provided below;
- Calculate the extra amount of money you know you can pay aside from the loan itself
- Compare the interest rates of various money lenders and narrow it down to the ones that suit you best
- Compare the interest rates based on monetary values
- Double-check on the fees you have to pay before signing the contract
As the saying goes, actions speak louder than words. Making your decision solely based on the information given by the money lender won’t be proper. You can find out plenty of information on the services provided by the money lender you seek based on the reviews of previous borrowers.
For instance, if you need urgent cash but previous clients stated that the money lender can be very slow in processing their loan, then you know that you need to avoid them.
6. Online Customer Service
Payday lenders who do not provide an online customer service portal on the internet can create a communication barrier between lenders and borrowers. In this age of technology, a good and genuine money lender should be able to provide their customers with online service platforms that allow prospects to inquire for any clarifications.