A payday loan is one of the demanding services in Singapore’s money lending industry. Considering how quick and easy it is to take out a payday loan, it makes sense why many people opt for a payday loan to resolve their financial issues.
Unexpected issues needing urgent financial support can happen at any time of the month. But they can be especially tormenting during the middle of the month when your expense savings can be quite low.
Get rid of your middle-of-the-month dilemma by opting for a payday loan that you can acquire easily within a day. There are plentiful of lenders out there that can provide you with a payday loan, but, not all can make the cut in providing a deal that precisely meets your needs.
To assist your quest in finding the best payday lender, there are eight tips you can utilize to come up with a decision;
#1 Understand how Payday Loan Works
Prior to getting yourself into taking out a payday loan, it is vital that you familiarize with how the system of payday loans work. The terms and conditions may differ from each moneylender, but, they all also have common requirements;
Borrowers must own an active bank account
Employed with a fixed monthly income
Provide their ID or Social Security number
Provide a bank statement
The sum of money you can apply for relies heavily on your monthly income. You will obtain the money either through cash or the lender will automatically transfer it into your bank account. Once you have received your salary, you will need to repay the loan within two to four weeks or else the interest rate will multiply.
#2 Take Your Time to do Research
Considering the vast number of deals offered by moneylenders in Singapore, you are advised to make a thorough research on the reliable licensed moneylenders that can meet precise needs. While at that, it is essential to do your research according to your own pace.
Taking out a loan is a huge commitment, so, you do not want to make such a rushed decision and take it easy instead to properly evaluate the pros and cons.
#3 Visit Nearby Licensed Moneylender Offices
If you live near to the city, there are likely to be many payday lender companies in the area that you can give a visit to inspect their legitimacy or for inquiries.
Even if you leave far away from the city, applying for a payday loan won’t be a problem. Genuine and renowned moneylenders often provide you with online customer service platforms you can go to for the information you need.
#4 Conduct a Detailed Online Research
Just because a payday lender can produce decent, persuasive advertisements do not mean that they are reliable. Don’t go making rushed decisions and settle for less. There are always better options out there that you can discover through thorough research online.
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.
If you plan on taking out a loan through an online application, then you can fill in the required details and documents needed and wait for a phone call to set up an appointment for your consultation with a professionally trained loan officer.
#5 Recognized and Qualified by Moneylenders Act Singapore
The Moneylenders Act Singapore regulates licensed moneylenders in Singapore by setting out a list of rules and regulations they need to follow strictly. This was done to make sure that borrowers are not being swindled.
Regulated by the Moneylenders Act Singapore also means that the lender is providing you with a legal service which you can refer to the higher authorities if any conflict occurs.
#6 Compare Interest Rates
Payday loans are well-known for their high-interest rates due to their attribution in being extremely short-term. Therefore, you need to be extra careful in making sure that you are not charged for unnecessary payments.
One precaution you can take is making comparisons between the fees charged by various payday loans so that you know the exact payments needed to be made.
Getting recommendations from people you know is also helpful. Coming from consumers’ perspectives as well, your friends or family will not be biased in their opinion since they will want you to get the best deals.
However, if there is no one you can refer to for recommendations, you can always go online and read the reviews left by previous borrowers. There are instances where the comments can be biased since there are companies that pay people to leave them positive reviews online. Thus, be selective in the reviews that you read and only go for the reliable sites.
#8 Find out Whether a Lender has the Credibility
One of the things that differentiates a good moneylender from an inadequate moneylender is their credibility. Any financial institution can give you a payday loan. But, not all can give you a payday loan that has your best interest at heart.
A credible moneylender should have enough experience to easily overcome any complications that might surface during your loan application or repayment. The credibility of a moneylender can be measured through;
Do they have a valid moneylender license given by the government?
How long have they been in the industry?
What do the previous customers say regarding their service? Are they positive or negative?
The tips provided above can be significantly useful to find the ideal payday loan according to your needs. Remember, as long as you don’t go overboard in the loan amount, you will have no problem in paying off the loan.
Being one of 2018’s top 10 best moneylenders in Singapore, you are welcomed to visit A1 Credit page for a payday loan consultation with a professionally trained loan officer or for any inquiry.