If you have heard the many myths out there about money lenders, and the tactics they take to get you to borrow with them, it is likely you would never consider taking out a loan. Yes, there are horror stories and you should be aware of them. With this in mind, they are rare; especially if you do the due diligence, take the time to find a licensed money lender, and know what your options are, you are not going to become one of the horror stories out there. So, these are a few of the many myths that are flying around out there, as it relates to money lenders, the terms you are going to have to deal with, and what you should really know as it relates to borrowing, as long as you do choose a licensed lender when you are ready to take out your loan.
Go personal loan –
Personal loan is the best option to repay your debt; it may be for some, but this is not the case for all people out there. Personal loans are a great vehicle to repay loans; but, if you do not have great credit, you may not qualify for this type of loan, or you may not get as much as you would like, in order to make the repayment. So, in some cases, a money lender, or other loan options, or even consolidation is the way to go. You have to do the research, you have to find out if you have more than one option, then you will go from there in order to determine what the “best” option is for you, and the situation that you are in, as it relates to paying back on the loans and the credit cards you are trying to repay when you do choose to take out a loan to repay them.
Personal loans are priciest –
Again, this is sometimes the case, and it is only the case if you do not compare lenders. If you take your time to compare a minimum of 3 to 5 lenders, you are obviously going to find some are going to charge you more in interest than others are going to charge. If you do not do the research and simply go to the first lender you find that is willing to extend you a loan, it is quite possible it is going to be the most expensive loan route you can take. As with anything you choose to buy, or any type of credit card you have taken out in the past, some companies are more reasonable than others; you have to find out which companies are right for you, in order to ensure you can deal with their repayment terms as a borrower.
Buy pricey items –
So, you think you are going to buy gaming systems, a huge TV, and other pricey goods with your personal loan? In fact, many people think this is a good idea, and it really is not. You can do this, but it is not giong to go well; especially if you are not a responsible borrower. If this is the case, you are simply going to get caught up in the repayment cycle, and probably not get out of it any time soon. You are going to get stuck paying on the interest, and never pay on the principle amount of the loan which you owe. So, compare, learn what the right options are, and learn how to go about purchasing items you want responsibly, rather than simply taking out a personal loan and thinking this is a good idea.
All moneylenders are equal –
If this were true, why would there be more than one lender? In fact, why would there be more than one loan type> You are easily going to find that from one lender to the next, the terms are going to differ greatly. If you are not willing to shop around and compare the terms, you are going to end up paying more on the interest and other fees than you have to pay. If you do take your time,see who is out there, and what kind of terms are out there for you to take advantage of as a borrower, you are obviously going to find the terms which work greatly for you as a borrower. Do your research, learn, compare, and find out which lenders are the right ones for you to take your loan out with, and who to avoid when you are going to borrow.
Credit isn’t stellar –
If this is the case you probably think you can’t borrow at all. Again, especially in today’s competitive lending Singapore market, this is not the case. If your credit score is not perfect, you can find quite a few moneylenders who will lend you money. And, you can also find lenders that are going to work with you in repayment of the loan as well. You simply have to know the many loan options that are available to you and ask questions about how these loans work. Even if you do not have a perfect credit score, you can find lenders who will work with you, and will actually provide you with reasonable terms when you are ready to take a loan out with them as a borrower.
All in All
You might have heard one or all of these myths as it relates to lenders in Singapore and your ability to take out a loan as a borrower. the truth of the matter is that there are quite a few options out there, and as long as you know how to shop and compare the right loans for you, it is quite simple for you to find reasonable terms and lending limits as a borrower. When the time comes for you to take out a loan, or at least compare loan terms and lenders, these are a few things you should know, in order to ensure you do go through the right lender, for the particular loan you are going to take out with them.