When it comes to obtaining a payday loan in Singapore, it is important that you are aware of the proper ways to go about applying for one. Take note that this type of loan is not something that you can just apply anytime you want. In this article, we will present the pros and cons of a payday loan. Our aim here is to present you with some of the basics about this loan so that you will be able to make a better and wiser decision when you are thinking of applying for one.
Benefits of Payday Loan
A payday loan is considered as one of the fastest way to get the money you need instantly. All you need to do is to find a reliable moneylender in Singapore. Thereafter, apply for this type of loan and indicate that you want it to be deposited in your account. You can just sit back and relax as you wait for the money to be wired in your account. It is definitely fast and easy. However, keep in mind that not all financial institutions or companies are providing this speedy payment service. As such, you really need to invest some time in finding the right moneylender that can cater to your financial needs as quickly as possible.
Another benefit of a payday loan is that its application can be made online. Even if you are just staying at home, you can already submit a loan application to your chosen creditor. Moreover, online services are available twenty-four hours. Because of this, you no longer need to go to the actual office of the company and talk to its representatives. Everything is made easy online. As a result, this whole process saves you time.
At the same time, there is also a high guarantee that the amount you can get from payday loan will increase over time. This is a great possibility if you are loyal to your moneylender in Singapore. As long as you pay on time and honor your promises, then you can definitely obtain higher loan amounts.
Disadvantages of Payday Loan
Since there are no collaterals or securities required in order to process an application for payday loan, then expect to pay higher interest rates for your borrowing. This is only normal since the creditor has a higher risk when they are lending money out to consumers. There is also a tendency for the collection of additional fees or charges especially if you will default your payments. This is why it is really important that you keep track of all the payments you need to make for the loan.
Failure to settle your obligation on time can lead to a negative effect on your credit standing. Your credit score will definitely decline, which can affect your capacity to obtain loans in the future. The financial institutions or moneylenders in the country always check the credit rating of a client before they release the loaned amount. Hence, if you have a high credit score, then there are more chances or opportunities for you to obtain a payday loan. Conversely, if you have a low score, then expect that the moneylender will not be interested in extending a loan in your favor.