Can I Get A Loan If I Have No Credit History

 Can I Get A Loan If I Have No Credit History - Who are the licensed private lenders in Singapore and how to get a loan if you have bad credit?

There may be certain times in our lives when we need financial help to see us through unforeseen situations. Maybe it could be to finance a new car, start your own business or just to earn your next paycheck. Most of us would turn to banks in such times of need.

Can I Get A Loan If I Have No Credit History

But what happens when you have a less than ideal credit score? Does this mean you won't be able to get the financial aid you need?

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Although most banks put a lot of emphasis on credit score, licensed private lenders may be able to give you some leeway in this aspect.

Simply put, these are private companies that are separate from traditional financial institutions. However, they function in much the same way that banks and other financial institutions would when it comes to providing loans.

They offer loans or money lending services to their customers. To be a fully licensed private lender in Singapore, the company must be registered by the Ministry of Law - Registry of Lenders.

They are then given an operating license to do business if they operate within the rules and regulations of the government. These strict regulations are in place to protect people from unfair interest and fees, and from being saddled with debt they can't afford.

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As a legally licensed private money lender in Singapore, Katong Credit adheres to a strict set of code of ethics put in place by the Ministry of Law. We also strive to provide our customers with the timely and reliable financial assistance they need.

When you find yourself struggling and worried about your finances, the last thing you want is to find out you borrowed from an unlicensed lender.

There are several things that licensed moneylenders are not allowed to do. Here's how you can tell the difference between a licensed and unlicensed private lender. These include the following:

1. They cannot advertise their services through social media platforms, text messages and random flyers. They are only allowed to advertise on their own websites and off their premises.

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2. The administrative fee they can charge is limited to 10%. They are not allowed to exceed this amount.

3. Nominal interest rates for licensed private lenders cannot exceed 4% per month. In addition, the late interest fee also cannot be more than 4% per month and can only be charged on the overdue amount.

It is extremely important that you thoroughly check the Department of Law website for the full list of licensed private lenders before entering into a loan agreement. This is to protect you from being financially tied to a loan with an unlicensed lender.

Not only do they charge exorbitant interest rates, they also resort to unscrupulous means when you refuse to pay.

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When you have a bad credit score, it basically means that you have previous transactions that they didn't handle too well.

You may have defaulted on your previous loans or are making late payments on bills and loans. Filing bankruptcy can also significantly lower your credit score.

All this information is listed in your credit history, which is the starting point for lenders and banks. Having a bad credit history usually means that traditional lenders like banks and credit unions will not want to give you the loan.

However, as a licensed private lender, we understand that worrying about your finances is not a good feeling. Thus, in some cases we are still ready to provide you with a loan. Yes, there are bad credit loans to help you!

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On your part, you can also adhere to the following steps to increase your chances of getting a loan:

1. Consider the size of the loan. Anyone with bad credit will not get a lender to lend them large sums of money. So it's important to work with a small amount of money instead. By applying for and paying off smaller personal loans, you can then start to rebuild your credit and work your way up to larger amounts. It's important to make your payments on time during this time because you're also working on rebuilding your credit.

2. Restructure the debt. Most times, people with bad credit tend to have an outstanding loan that they are in arrears on. The best thing to do in such a case is to create a debt repayment plan, pay off your debts and then apply for a new loan. It's important to talk to your lender about debt restructuring so you can pay it off more easily.

3. Alternative sources of financing. Anyone with bad credit is likely to be turned down by traditional banks. This is the time to consider alternative sources of funding. Private licensed lenders are a big consideration because although they are regulated by the government, they have fewer restrictions than some of these financial institutions. In some cases, they even offer personal loans for people with bad credit.

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1. Amounts of the loan. Banks have the ability to provide larger loans. This means that a bank is ideal for taking out a mortgage and a renovation loan, but may refuse loans to people with low incomes. Licensed private lenders, on the other hand, concentrate their efforts on smaller loans. At Katong Credit, we strive to be able to provide all our customers with the financial assistance they need.

2. Credit approval. Bank loan approval is a long tedious process and often takes up to a month. Licensed private lenders, on the other hand, can often approve a loan within an hour and provide the necessary cash on the spot. Katong Credit operates with a 24-hour period between loan application and disbursement. This rate is ideal for those looking for emergency cash.

3. Interest rates. Banks usually offer lower interest rates than moneylenders, but this is often because they require collateral before lending. Licensed private lenders are willing to take the risk and offer unsecured loans to borrowers. To reduce their risk, they tend to offer a higher interest rate. It is important to note that this rate is not excessive as the government regulates how much they can charge interest rates.

4. Light credit score. Banks are very strict about their credit assessment of each borrower and are not as flexible as licensed lenders. Basically, if a borrower has bad credit, they simply get turned down. As a licensed private lender, we tend to be more lenient and will generally consider your current income when deciding whether or not to grant you the loan.

Budget Loan Form

When considering taking out a loan, it's important to make sure you're borrowing from a legitimate lender. Unlicensed lenders who do not follow the rules and regulations set forth by the Department of Justice have been known to rip off unsuspecting borrowers. There were many stories about this in the media.

An example is the story of a local man who responded to a WhatsApp message advertising money lending services. He borrowed $700 only to pay back $7,500.

Another unsuspecting victim responded to a WhatsApp message and borrowed $1,000 only to pay back $4,000. These borrowers ended up paying exorbitant late payment and administrative fees. In fact, the loan shark will become unavailable when it comes time to make payments or delay in sending payment details, only to charge daily late fees even though they are the ones to blame. The late fees quickly piled up beyond a reasonable amount.

A personal loan does not come with any restrictions on how the borrower uses it. This makes it one of the most flexible loans available. It's also the loan for almost anyone who needs some cash. Here are 6 different things a person can use a personal loan for:

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1. Wedding and honeymoon expenses. A wedding loan is useful because weddings are very expensive. Of course, it is ideal that one saves before the wedding, but in some cases the bride and groom do not have enough money to cover all the expenses. Some of the more expensive items include the bride's dress and venue, and then there are other smaller costs that include wedding coordinator fees, cake, photography and videography, and flowers. If the cash you have on hand isn't enough, a personal loan can fill the gap. Sometimes a couple may have enough money for the wedding, but not enough to cover the honeymoon. Taking out a loan to pay for your honeymoon allows you to enjoy your vacation and pay off the loan later at a comfortable pace.

2. Credit card payment. In general, personal loans have lower interest rates than credit cards. If

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