Having a bad credit history could be problematic when you are in need of some personal loan, especially in a country like Singapore. There are several situations that lead you without having any income or money for the hard times. However, there is some insurance that covers the cost, but even they are not enough sometimes and you need to have a personal loan.
For obtaining a personal loan, it is necessary that you have a good credit rating otherwise it becomes very difficult to obtain any loan. It may look challenging, but there are always options that you can discover, such as:
Reform the existing debt amount
Having a negative credit score means that you have some unresolved debt in hand that you need to repay. Prior to applying for any personal loan, it is advised that you get rid of the debt that you already have on your side. This is the only way through which you can progress towards a better credit score.
You can ask a few favors from your bank, like to decrease the interest rate so that you do not have to pay an extra amount of debt on your currently owed money. The other option is to speak to your bank if it can increase the payment period so that you could pay a possible amount every month. This way, you can pay at least some of the amount.
By reforming your debt structure, you can actually pay it pretty soon by not stopping the borrowed amount. Smaller amounts will keep your status active and your credit history will get improved and will help you in getting a loan in the future.
Request for the minor amount first
To have a neutral effect over your lender, it is advisable if you apply for the small amount of the personal loan first.
Earlier, we have talked about repaying the loan in small amounts and longer payment periods for improving the credit history. Applying for a reasonable amount at first will help you in coagulating that relationship with your bank. You need to ensure about making payments on time and not to miss any of them. This is an important step that will help you in maintaining your loan reputation. When you continue with this practice, the money lenders will have an idea to grant you with the bigger loan next time.
Personal loan from non-banking sector
Certainly, banks are strict with the bad credit history holders and maybe refuse you for the loan amount. The financial institutions like Singapura Finance also offer personal loans to the people. They have some distinctive rules and regulations like with their packages and risk factors, but you eventually get the loan. It does not mean that they do not care for your history; they just have another way to deal while granting loans to you.
Whoever you are taking a loan from, just make sure that everything is documented and you have approached the licensed company or bank in Singapore.