Types of credit line you should be aware of

Personal loans whether it may be credit cards, installment loans or payday loans are actually targeted market loans specifically tailor-made for a certain market.

Although everyone may avail of these kinds of loans, terms for every group of people differ as what these people can afford, terms and rates are not the same for everyone. This type of credit line falls under the consumer credit as the word implies, this credit line is for commercial use.

People are separated into brackets. As the loans specify different limits and rates for each economy class. Regular credit cards, gold cards, platinum cards, as long as you are working you are entitled to apply for these types of credit. It depends on your credit history, whether a financial institution will grant you a higher credit limit depending on your credit history the better credit history the higher credit line you are given.

Same goes for installment loans as you are a better payee almost every time you are given better rates, higher credit, and longer payment terms. This type of unsecured loan is solely based on how good your credit history is. And can be used for a wide array of consumer products and services provided it falls within the credit line granted by the credit institution or lender.

Every individual is targeted, especially working individuals with a steady income. Even a payday loan is a type of personal loan in which the loan is made in a single payment as the borrower in essence pawns in their salary for an early payday in which the interest could be charged in advance or over your payment.

Private lending institutions, banks or other financial institutions usually have your credit history before you are approved or given a credit line, as this is the actual basis for the credit.

As time passes people with credit lines either improve their credit image or depreciate it depending on how they handle their monthly payments and by this credit line other types of loans are denied and approved. A personal loan is exactly what it is, personal.

It reflects an individual’s credit persona as to whether he or she is a good investment to a credit institution, bank, or any financial institution for that matter that would grant a loan or a credit line to those people they feel worth it, remembering that a credit line is lending a financial institutions name to an individual to boost their buying power by means of non-cash transactions.

4 essential tips for taking out a loan from a licensed moneylender

There are always times that cash flow will not be enough, in buying a car, house or even just to spend on yourself. One way of dealing with this problem is by applying for a loan, depending on what you are going to use it for, there are different types of loans to choose from, different types of lenders, different loan structures and most of all different rates. How to get the best loan rates, how to get the best deal, how to get the best loan period. Here are some essential tips for taking out a loan to assure yourself the loan that you are taking out is the right loan for you:

Loan Affordability

As everyone’s income bracket differs, how your allotted budget to pay for your loan will largely effect on how long you will have to pay to close it out. “How to get the best loan rates?” should be a highly regarded question to maximize the paying power of the budget you have allotted in paying for the loan. The more of the principal amount you are paying for the better.

Loan Company

Credit Unions, Banks, or brokers are a few examples of financial institutions that cater to borrowers, especially brokers who usually cater to real estate shoppers. Credit unions usually have the best rates and service, but credit unions specialize in only certain kinds of loans. Brokers usually carry the highest rates even against banks but their advantage is that they have access to money lending singapore and loans with different terms and rates.

Compare loans and Lenders

If you feel that you prefer to pay a little bit more and use a broker for faster processing, by all means. But on how to get the best rates possible, it is better to do your own legwork. The amount of interest you save by scouting a loan on your own could have a bigger impact in the long run rather than putting it all on a top licensed moneylender in Singapore (SG).

Understand Loan Prices

Educate yourself on how the rates affect the loan amount. Interest rates may vary depending on the terms and conditions of the loan. As under and overpayments may be charged with premiums the amount you pay would affect the duration of the loan itself, i.e. would you be willing to close out your loan and shell out more money by overpayment premiums rather than letting the whole contract run its course? Going to shop for a loan does not necessarily mean spending, rather than educating oneself on what you as a borrower would need

Very useful function of flexible loans

Flexible loans are the type of loans designed to have flexibility, allowing borrowers to change the term of the loan to suit specific situations.

The loan is also designed with the specific restriction to protect the borrower from getting into more financial problem. In most cases, flexible loans are also quite similar to bank loans only it gives the borrower more leeway in using the funds.

Flexible loans are very much like the credit card or a type of an overdraft protection because of its mixture of several types of loans. One feature of flexible loans is it allows you to underpay or overpay your loan and no surcharge or penalty is charged to you.

Flexible loans can be designed or restricted in various ways.

Flexi loans can disburse a single payment but it also allows a borrower to get more money on the loan as long as a sizable amount of it has been paid. A loan lending company can also structure the financial aid to provide the borrower some kind of credit limit so he can just withdraw money from it little by little until the funds run out.

The best part of this type of loan is that even before the fund is exhausted, the borrower can re-apply to have the loan refreshed with additional cash.

One very useful function of flexible loans is when an individual is in a situation where he does not know the exact amount of money he would need for a specific expense. For instance, the cost of renovating a house is always never exact.

The expense for this kind of activity can either surpass the initial cost estimate or it can be lower. A flexible loan, in this case, can be very handy because the borrower can always overestimate the amount he needs in order to be secured that the money he has for the renovation will be enough to cover the expenses.

We are all aware that most lending companies including banks have limits when it comes to providing financial assistance. They usually have very strict and conservative repayment policies that you need to follow and many of them require some form of collateral from you for the loan.

Also, it is a way for them to be reassured that you won’t renege on your loan. Flexible loans are most of the time unsecured. If you have a good credit rating or score, chances are you will not have a problem applying for a flexible loan and at the same time be given a reasonable interest rate on your loan.

Best things with the licensed moneylenders

Faith it seems would always have a hand in giving individual financial problems because, every time you think you have enough financial resources to get you through the month, your car breaks down or a medical expense suddenly arises. These events and more tend to be the cause for you to apply for any type of loans including the short term payday loan just so you can cover the unexpected expense that has come your way. The sad part of it all is that emergency or urgent expenses usually come with the condition that it needs to be settled immediately and this will eliminate the option for you to apply for a loan with a conventional loan Company like a bank whose loan processes would take at least a month before it is acted upon by the loan officer.

So in immediate cases like this, the possible resolution is to file for small loans with licensed moneylenders whose policies are more relaxed than those of the banks. Licensed moneylenders offer payday and/or personal loans and this is the reason why people make them their only options to cover immediate expenses. The loan processes are very simple and most of them do not require a credit check. All you need to present are proof of income from your employment or business and you have your loan right away. The sad part of it is the need for cash usually comes at the most inopportune moment when you hardly have enough liquid to resolve the financial crisis.

Generally, payday loan has many names. They’re referred to as a paycheck loan because they are required to be paid immediately soon as you get your next paycheck; payday advance, cash advance or a more common name of short-term loan. In earlier times, these types of loans are usually provided by the employers to their employees but because the policy has been abused by employees themselves, many companies started doing away with the practice. This has given rise to external forces to come up with the idea of payday loans

Payday loans are the most convenient and easiest way to get cash. But there are some things that you should keep in mind before entering a deal with payday loan lenders. First, Make sure that you can handle the repayment schedule. Going beyond the timeline of the due date will tremendously add to your debt. Late charges tend to accumulate into very large sums in just a matter of days. Second, never make the mistake of using a payday loan to pay off another loan.



Easy application of an online personal loan

There are various loan companies from where you can apply and get a personal loan from. In today’s modern and highly developed Singapore, a personal loan is easily available from the internet, large and small financial institutions, commercial banks, and even from your credit card company. Some of them may require collaterals but many of them also allow unsecured loans. One kind of personal loan is known as payday loan.

A personal loan is also a type of small loan with a short repayment term. It doesn’t need a credit check making it one of the easiest to avail. The loan amount that you can get from this type loan is about $500 but it can be higher depending on the agreement between the lender and the borrower. The loan is usually secured by the borrower’s next paycheck. However, there is a fee that you would need to pay once the personal loan is approved. This fee and sometimes the interest are taken out from the loan amount that you will receive. Personal loans are normally deposited by the lender to your bank account less the interest and the fees.

At times when you need a much larger sum of money for a Loan Company credit check for personal and/or bank loan will most likely be done. Instead of applying with various lenders, and therefore having to go through all their credit check you may as well use a financial broker to arrange the loan for you. The broker would do the credit check once and will pass on the information to several lenders. However, you would need to provide various financial documentation such as bank records and employment and/or business income to prove to the lender that you have a stable income and can comply with their repayment terms.

Another method by which you can get a personal loan is by using the home equity line of credit. For this kind of financial assistance, you will need to have your home as collateral. This type of personal loans is usually used for debt consolidation and home renovation or to purchase other types of properties. The interest that you pay for this type of loan is much lower than any other type of loans.

When you consider applying for any type of loans, be wise about it. The initial study and review your financial priorities before anything else and if you do proceed to get the loan, make sure to manage the loan wisely by using it for the expenses it was intended for.