Five Things To Avoid When Getting A Personal Loan In Singapore
Do you want to finance a personal project with a loan in Singapore? Do you want to take out a loan? This article summarizes you in 5 points that you absolutely must take into consideration. Five handy tips for things you should avoid when choosing the credit that will be perfectly suited to your profile and needs
1 Avoid borrowing without proper assessment
When you have a project and want to make a loan to finance it, it is essential to assess your borrowing capacity beforehand carefully. In other words, your ability to repay it without difficulty, even in the event of the unexpected. For this, you can start with a simple calculation. It consists of adding your monthly income and subtracting your monthly expenses, including the amount of repayment of the new credit that you wish to take out. This calculation will also allow you to assess the ideal duration for your loan. Indeed, extending its term will allow you to decrease the monthly reimbursement to adapt to your budget. Please note, however, that maximum durations are set by regulations depending on the amount borrowed.
- Avoid Borrowing Without Comparison
There are many credit offers, so it is essential to compare and evaluate the offer that works best for you. Comparators like guide-epargne.be allow you to obtain a view of the market in just a few clicks. They also highlight the strengths of the different offers. To compare, always start from the APR (annual effective annual rate). This is an “all-inclusive” rate that allows you to effectively compare all personal credit offers, regardless of their formula.
- Avoid Borrowing Without Reading The General Conditions
Although the regulations strictly and precisely regulate consumer credit, it is necessary to understand the general terms linked to the contract. These must be provided to you through the credit intermediary or the lender.
They will allow you to understand the conditions before making a loan entirely.
You will discover there, for example:
- that you still have the right to forfeit your credit within 14 days of its conclusion
- that you can also prepay it in whole or in part at any time
- that late fees are capped by regulation.
- Avoid Focusing Only On The Rate
When you receive an offer of credit, it is essential to compare all the elements of the offer made to you. Beyond the borrowing rate, look at the APR (overall effective annual rate). As indicated above, it is the “all-inclusive” rate. It, therefore, takes over all the costs of your loan application.
For example, having to pay administration fees is not necessarily negative. If you have two loan offers with the same APR, you will pay the same for your credit, whether or not it includes application fees. Stopping solely on the rate could also prevent you from seeing other benefits offered by some lenders. For example, mozzeno.com provides a reward to all borrowers who have repaid their loan correctly over its entire term. This consists of a sum of money equivalent to part of the cost of the credit, paid back to the borrower at the end of the loan. Also, watch out for scams. An authorized lender can never ask you to pay fees before granting the loan, for example, to analyze your file.
- Do Not Take Into Consideration The Possibility Of Combining Your Credits
If you already have credits in progress, it may be interesting to study the feasibility of grouping all of your credits as part of a new credit request. A cluster of loans consists of gathering two or more loans into one. Credit consolidation can either obtain better rate conditions on the new credit, bring together the existing ones, or modify the terms of your current loans.
Conclusion
Getting a personal loan is not a difficult task when you go through authorized lenders like Crawfort micro-loan providers. Ensure you adhere to the rules in the article and enjoy a stress free loan..
