A credit score is critical when it comes to loan qualification. As humans, we tend to get used to things so fast. It is for that reason people no longer take a bad score seriously. It has reached a point where debt is typical to everyone. A few years ago, owing someone was a big deal. But today, borrowing is trendy, and having a poor credit score is not scary anymore. No one pays attention to it until that moment they realize their request for a loan cannot be granted due to bad credit scores.
Loan lenders in Singapore are hesitant to lend money to bad credit scorers. They would rather miss the benefits that come with loaning than to lend to the wrong people. However, not all lenders look into the credit score. Some may not consider your credit ratings at all. To such lenders, they pay attention to other details like the ability to repay the loan, your credit history, and how you deal with debtors. Isn’t that good news for you? It means that you can still get financing for your business even though you have a bad credit score. Still, you can make your dream a reality. It is possible to establish the business that you have always dreamt of. Let’s see why you, as a Singaporean, should never allow a bad credit score to keep you from obtaining a startup loan.
There is always a solution for everything
Everyone always claims there is a solution to everything. Although there is some truth in it, saying is not enough. You have to find a solution to deal with the problem at hand. Otherwise, that statement wouldn’t make sense. For that reason, I won’t just give you false hopes. I will provide what you need to solve your problem. Read below to find out the alternatives you can consider when you are denied a loan in Singapore due to low credit ratings.
Personal loans available for Singaporeans
Personal loans are prevalent in Singapore. Just like I mentioned earlier, getting a loan with bad credit is possible. Various personal loan lenders offer to finance for a start-up business. Let’s see.
QV Credit
QV Credit is a bad credit personal loan. It is a legal and registered Money lender. This is one of the most trusted money lenders. It is fully monitored by the Registry of Moneylenders of Singapore. All of its activities are in line with the rules of Moneylenders. Consider loaning from them if you need urgent money.
Bugis credit
By now, you have already given up on the idea of borrowing from banks. You were disheartened by how other money lenders dismissed your loan application because of your poor credit ratings. That’s not the end for you. Bugis Creditoffers loans to people like you. They respond immediately when you contact them. The loan is granted as soon as you sign the loan documents. It is genuine, and you can count on it anytime.
HSBC
Unlike other personal loan lenders, HSBC charges low interest. In addition to generous interest rates, they give a long payment period of 7 years. You can borrow any amount you want without being limited.
Now that you know the available personal loans, how do you apply for them? Continue reading to find out.
Getting the loan
You’ll be issued with the credit after you sign the documents. Check at the agreements carefully and only sign after you are sure of its content. You might end up agreeing on dangerous deals if you are not careful.
Do your research and contact them
This is the first step before applying for any loan. Here, you search for the genuine loan givers. Ask debtors who have dealt with them to get accurate information. Then apply for the loan after you are sure of their program.
Give the loaners time to find you
At this time, the ball is on their side. You have already applied for it, and the only thing remaining is their response. Most of them take one day before reaching out to you. Finally, they will get back to you, and you’ll be informed of the necessary requirements. They will also set your date of appointment.
The requirements
There is certain documentation that you’ll be required to give out. Missing any of these documents disqualifies you. They include:
- Be a Singapore resident for more than 21 years
- Have an NRIC copy
- Income proof
- Have a work permit if you are not a Singaporean
- No bankruptcy in your records
Meeting the private lenders in person
Once you submit your papers, you’ll be called to their offices. By now, the personnel have gone through your documents and approved them. You will be informed about their terms and conditions and all the charges you’ll pay. Seek clarifications where you don’t understand to avoid committing to something you might regret. Make sure you know any hidden charges that may occur in the future. Don’t forget to find out the payment period.
Ask for financial assistance from your loved ones
Probably you have looked for all possible ways, but you qualified for none of them. Finding a startup loan doesn’t have to be obtained from the bank or lending institutions. Your family or friends can assist you. Seek financial help from them, and you’ll be surprised at the amount of money you receive.
What else should you know?
Instead of waiting for your bad score rating to deny your loans, work on it. Keep in mind that most, if not all lenders, look at the credit score before giving you a loan. Always check your credit score in advance before borrowing. Contact credit bureaus in Singapore to know your ratings. If you find out your score is poor, take the initiative of improving it.
The Bottom Line
While a bad credit score blocks your chances of getting a loan, it is still possible to get start-up loans in Singapore. There are many options available. The only challenge is to get what fits you. However, take heart.
