As a Singapore resident, you already know about the country’s economic status that has sometimes left many hit unknowingly by unforeseen expenses that needed quick financial solutions.
If you’ve been wondering what to do when unforeseen and emergency financial needs hit you in Singapore, you’re in the right place. Here’s a way to find the best payday loan Singapore.
Let’s dive in:
What is a payday loan, and how does it work?
In simple put, a payday loan is a short-term financial help usually about $100-$15000, given to help you cover your immediate financial needs until your next payment.
Pros and cons
- Easy and convenient to access
- Fewer documentation requirements
- Lenders don’t check your credits
- Higher interests rates
- Considered to be predatory
- Can quickly get many trapped in debt cycles
What are the things to consider before getting a cash advance loan?
When it comes to accessing a payday loan, most people get confused by what they should keep in mind before getting such a loan. That said, here’s what you need to consider every time you’re about to borrow a payday loan in Singapore:
- Clearly understand why you need payday loans IN
The right thing to do first before taking a cash advance loan is to know why exactly you need it in the first place.
Knowing your top reasons why you need payday loans is a wise way of avoiding pilling up credit cycles without valid reasons. Cash advance loan’s short-term payback guarantee is another reason you need to keep in mind into making informed decisions when applying for it.
Moreover, don’t get used to taking cash advance loans for petty financial needs you can do without. This is to help you reduce the chances of borrowers getting used to your borrowing habits, which they can sometimes apply to lure you into taking more loans for their huge interests’ benefits.
- Calculate how much you honestly need
If you consider taking a cash advance loan, you’re going to need to calculate the amount of money you need to sort your problems completely.
Once you calculate the amount required to meet your financial needs, the figure you come up with is precisely what you’ll present to lenders.
To most people, limiting themselves on money isn’t a walk in the park. Because of this, having a figure at hand will help you avoid falling into the trap of borrowing more than you need, which comes with paying more.
- Understand your paycheck’s ability to clear the payday loans and leave you with something decent at the end of the month
Well, this is a hard rock to break for many people. When it comes to taking cash advance loans, most people forget to consider their monthly earnings and end up using all their salaries on credits. This doesn’t just hurt your finances, but also your character as much as handling finances is concerned.
The idea here is simple: To avoid falling into the trap of using your entire salary on payday loans, gauge what you want to borrow by what you can comfortably pay back at the end of the month without having to acquire a loan again to meet your financial needs.
When you understand how much you can comfortably afford by the end of the month, you’re going to learn how to handle your finances at best.
Is a payday loan the right one for you?
If you’re met by unforeseen or emergency financial needs in the middle of the month when you’ve more days to go before your next payment, a cash advance loan is going to be the right choice you’ve got, so, yes, a payday loan is the right one for you.
How much do you need?
In a nutshell, there is no standard amount for payday loans in Singapore. The amount you need is based on your needs. However, the amount of money you can borrow varies with the state’s laws at your place of residence. The standard cash advance loan amount most states allow ranges from $300 to $1000
Can you pay on your next payday?
This is allowed by most lenders because typically, the shortest next paycheck is always two weeks after taking the loan.
Once you’ve taken a cash advance loan, you will be eligible to post-date a personal check to coincide with your next paycheck. Alternatively, you can give your lender electronic access to your bank account to withdraw their payment on your next pay.
With that in mind, let’s look at the comparison between payday loans and personal loans, what’s the difference? Here’s what to know:
Payday loans vs. Personal Loan: What’s the difference?
|Key Differences||Payday Loan||Personal Loan|
|Annual income requirements||Limited and based on your monthly income||Based on annual income, bank account statement other assets|
|Interest Rates||The maximum interest rate money lenders can charge is 4% per month||The maximum interest rate money lenders can charge is 4% per month|
|Repayment Duration||Should be paid on your next paycheck or less than a month||Longer repayment tenure depending on your loan contract|
|Joint applications||Single loan applicant||Allows a co-borrower such as relative or family members|
|Approval time||30min to 1hour depending on the moneylender||30min to 1hour depending on the moneylender|
The significant difference between a payday loan and a personal loan is their terms. Payday loans are one of the most extremely short-term financial help that’s usually due within a month while a personal loan takes at least two years and more.
Personal loans come with a much lower interest rate than cash advance loans. This is beneficial if you’re using your loan as a debt consolidation loan or paying your emergency needs.
When it comes to their differences in their loanable amount, a payday loan offers you a one months worth of your income while a personal loan can go up to 6 times your salary.
Can you get a cash advance loan with bad credit?
Yes, it is possible to get a cash advance loan with bad credit. However, certain conditions are considered by the licensed money lender first. In the event you’re confident about your credit score and believe you can be approved, you can ask your lenders for a third party customer review, which is always aimed at helping you make informed decisions.
When should you get a cash advance loan?
As stated earlier, a cash advance loan is meant to help you meet unforeseen or emergency financial needs. That said, a cash advance loan is a wise decision in the event of situations like:
- Cite emergencies– If you’re the owner of a cite such as a construction site and an emergency occurs, you won’t like the idea of using your construction budget finances to meet such emergency demands. With this in mind, a cash advance loan becomes an excellent option to get you sorted.
- Monthly Bills– Well, sometimes waiting for your paycheck to meet your household bills may be hard. In the event of a late paycheck, you can access a cash advance loan to pay for your monthly bills such as power, internet, and water, which can be a disconnect with delayed clearances.
- Car break down– If you own a car, you know the pain it brings when it breaks down when you don’t have anything at hand. In case this happens, you can opt for a cash advance loan to pay for the demands and get your car back to its condition.
- Broken laptop and school fees– For working from home enthusiasts, your laptop is everything needed to keep you going, and for parents, you don’t want your kids to miss school because of fees. If this happens, you can access a cash advance loan and fix your needs before your next pay.
How to choose the Best Payday Loan in Singapore?
Now that you have a deeper understanding of the payday loan, it’s now time to find the best and trustworthy moneylender that can help you with your financial needs. A1 Credit is known for being a reliable institution that adheres to the law and treats its applicants with utmost urgency and importance.
Being in the industry for over a decade, you can be assured and confident that A1 Credit offers the best loan offer– fast approval, low interest rate, flexible repayment, and excellent customer service.
As you’ve seen above, cash advance loans are an excellent choice when you’re met with unforeseen and emergency financial needs.
A payday loan is a lifesaver at times you’re met with a financial crisis. Even better, cash advance loans are easy to access and have fewer to no documentation required. However, make sure to note that payday loans come with higher interest rates and are also considered predatory.