What do you need to get payday loan?

What do you need to get payday loan?

There might be circumstances where you need urgent cash to fix your problem either to repair your broken car, late payment for your children’s school fees or a last-minute shopping for the holidays and you just wish to get the paycheck a little quicker.

Do you know that you do have the alternative to obtain a sum of money as if you are getting your salary? Such thing is called a payday loan which is a type of an unsecured personal loan with a shorter term than a regular personal loan. A payday loan is also often referred to as cash advance or salary advance loan.  Unlike conventional bank loans, the whole process to acquire a payday loan is much faster due to the minimal documents and requirements needed to apply it. 

However, lenders won’t just easily give out loans to anyone. So there are a few things you need to ensure to get approval from the money lenders.

Decide on an Amount That You Need

Payday loan

Prior to your loan application, it is essential that you first figure out the amount of money that you really need. The amount should be of a convenient quantity you are confident enough to pay off easily in the future. It is best to go lower than the exact amount of your original salary and there are two reasons for this; so that you still have money left once you have paid off the loan using your salary and to make up the cost of the interest rate that you will have to pay.

For this reason, you have to think rationally in the amount you apply for to avoid further difficulties in the near future.

Check Your Credit Score

Credit Score

Just because money lenders are forgiving in terms of your credit score, it does not mean they will completely disregard it. Depending on the money lender that you apply to, your credit score could be an important deciding factor whether to offer you a loan or not. As a safety measure, it is better that you maintain a healthy score anyway.

If you are applying with a poor credit score, be prepared with numerous documents that will be helpful to validate your reliability to pay back the loan.

Prepare the Required Documents

Required Documents

To justify your qualifications, you will have to prepare the necessary documents according to your circumstance to apply for the loan. For instance, if you are a taxi driver, you need to present a valid taxi pass. If you are self-employed, you need to provide an Accounting and Corporate Regulatory Authority (ACRA) note.

Check the Age Requirement

Regardless of how successful you are as a young entrepreneur, you are still not qualified for a payday loan if you do not meet the minimum age requirement. 

The qualified age to apply for a payday loan is 21 years and above with a maximum age of 64 years. Once you have reached the required age with the proof of a steady income, you will be eligible for a payday loan.

Find A Reliable Money lender

Many fraudsters are exploiting the huge money lender business in Singapore through swindling. Making it compulsory that you take extra precautions to avoid falling victim to the loan sharks.

It would be sensible if you do thorough research prior to choosing a reliable money lender since they are instructed to follow strict rules and regulations which disallow them to charge borrowers recklessly. To identify whether a money lender in Singapore is authorized, you can go on the Ministry of Law’s official website and look through the list of money lenders that are legally registered.

Are Foreigners Qualified for a Payday loan?

Working foreigners in Singapore are not an exception in getting a payday loan. However, you do need to provide additional documents; a valid work permit, a payslip dating from 3 months prior to the application and the rental agreement indicating your current address.

Apart from the documents mentioned, similar to Singaporeans and permanent residents, you will have to hand over the basic documents as well. 

An Overview

According to your circumstance, these are the lists of documents to hopefully ease your application process:

The basic qualifications:

  • Applicant should be at least 21 years old
  • Must be a Singaporean or a permanent resident
  • Has a fixed monthly income

For employed applicants:

  • ID Card (NRIC)
  • Has a SingPass account
  • A recent billing proof showing your current address
  • A recent payslip dating to 3 months prior to application

For self-employed borrowers:

  • Has a Singpass account
  • ID Card (NRIC)
  • A copy of Assessment Notice (NOA) showing your trade income
  • A copy of the Accounting and Corporate Regulatory Authority (ACRA) note
  • A recent billing proof showing your current address

For taxi drivers:

  • ID Card (NRIC)
  • A valid Taxi pass
  • Vocational license
  • Present a job summary of a minimum of 7 days
  • A recent billing proof showing your current address

For working foreigners:

  • A copy of your passport(To be safe, do multiple copies)
  • A valid employment pass 
  • A recent copy of your Income Tax Notice of Assessment
  • The most recent payslip
  • A Tenancy Agreement for where you are living, and a letter that has been mailed to that address
  • A letter of employment from your place of work

An emergency might occur at any moment without any room for you to solve it straight away. For this reason, it is for the best that you walk into an unexpected situation prepared with guidelines like the ones mentioned above to avoid yourself to be left in the lurch.

Before submitting your application, it is always best to give your money lender a call first for confirmation on the paperwork needed.

Being one of the best-licensed money lenders in Singapore that is fully compliant to the Moneylender’s Act, A1 Credit provides you with the best short-term loans that prioritize the best service for you. If you would like to find out more on the loans and deals provided by A1 Credit.

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