If you find yourself worried about the legitimacy of a credit company, it’s advisable to take your time to do due diligence to know if it’s legitimate before you involve them. Fraud has risen in almost every business, where you will find scammers or other corny business people.
Most clients lose a lot of money through these scammers who operate in the name of moneylenders. In the money lending sector, you need to be extra careful to know how to determine a legit credit company. The money sharks or unlicensed moneylenders can frustrate you.
In Singapore, we have numerous unlicensed moneylenders who act legit and are not registered by the government, and their reason for that they are still new to appear on the government database. This kind of response is a trap in which they can convince you to engage with them and fraud you.
There are various ways which you can use to know whether a credit company is legitimate or not:
1. They Follow The Right Application Process.
A real licensed moneylender will always require you to provide documents. The licensed moneylenders always want to know your employment status. This helps them determine whether you can pay off a loan or not.
Unlicensed moneylenders normally have a short procedure to follow. The scammers can deceive you by telling you they don’t require your documents such as an ID or residence proof when applying for the loans. However, there is always a hidden agenda or hidden fees they aren’t mentioning.
Many individuals can fall for it since the unlicensed moneylenders know what awaits them in the future. Ultimately, they will get more profits from you.
2. Advertise Using the Right Channels.
Many unlicensed moneylenders use platforms such as WhatsApp, Facebook, flyers, SMS, and calls to communicate with you. This should be a red flag for you to spot an illegitimate credit company. You need to ask yourself how they got your number or your Facebook account name and privately text or call you.
Legitimate moneylenders don’t text or call you unless you reached out for their services and responded. Some individuals are caught in this trap due to desperation for money and later on regret their actions. In due time, you can get harassed by the loan shark personnel if you fail to pay. Additionally, you can risk getting your property auctioned.
Legitimate moneylenders advertise through mass media, social media, or traditional ways. They don’t contact you through calls, text, or direct mail since it’s against their regulations.
- The Lenders Check Your Documents Well Before Giving A Loan.
Fraudulent moneylenders guarantee every applicant loans even without checking their credit history and score. They use such words like
- Everyone is approved.
- No problem if you have bad or good credit.
- They care less about your history, and you deserve a loan.
If you see the above statements, run away from those frauds, since they are enticing individuals with a high risk of credit history to join them. As a result, they will default and charge you with high interest and fees.
A legit credit company will look at your credit history and score first before they decide to either give you a loan or not. The thing to note always is to do your due diligence to work with moneylenders who are interested to know your credit score, before knowing your loan status eligibility.
4. Their Paperwork Is A Bit Complex.
The unlicensed credit company makes the application process easy. They trap people using their fake policies. They have sweet tongues to entice you into getting the loans.
Their contracts are drafted in a such way they miss key elements such as; repayment terms, clients’ rights, legal obligations, and legal measures when you default their loans. To be safe don’t rush to sign the contract, take your time to read and understand the contract and check if the key elements are drafted in it.
5. The Lender Has a Physical Address.
Licensed moneylenders normally have their physical addresses properly illustrated on their websites. Most loan sharks don’t normally have a physical address. They will even convince you that it is important for you to go to their physical address.
Due to your money urgency, you will give in and take up a loan. Most legit moneylenders don’t rush you into getting a loan, they allow you to take your time.
6. They Give You Freedom to Make your Decision.
Loan sharks know how to play with your mind. This will make you make wrong decisions while in a confused state. They even go deep to ask you about your bank pin and other personal details that they don’t deserve to know. Always be wise when dealing with a loan fraud company.
You can give out some really sensitive data that they can use against you when you default payment. Thereby, always be careful when taking up a loan. Always trust companies that seem transparent in their transactions. Good money lending companies give you the freedom to make your decisions.
If you happen to need a credit loan from a company, always be careful about where you are going to borrow a loan, not all moneylenders are legit. Whenever you accept a loan, always take your time to go through the loan contract and policies.
If otherwise, you note the interest rate is higher in the contract I advise you to decline the loan immediately, since you are engaging an illegal credit company. The above explanations show you how to know whether a credit company is legal or illegal.
An example of a legal money lender in Singapore, it’s like SU Credit Company. If you notice any illegal credit companies, report them to the authority for moneylenders in Singapore.
What is a credit loan in Singapore?
It is a loan facility advanced to an individual to meet various needs or unexpected expenses. A credit loan Singapore is a flexible form of financing that allows you to access the amount of money advanced according to your needs at any given time. The loan carries an interest rate that varies from one lender to another.
Requirements Before applying for a credit loan in Singapore.
Gather all the documents and information that you will require to process the loan. This will enable you to have a smooth process and receive your funds within a short period.
Some of the requirements may include, proof of income such as a payslip or filed tax returns, personal identification such as passport, social security card, or driver’s license, employer’s information including company name, location, and contact number, and proof of residence such as lease agreement.
Here are tips that can assist you in finding the correct credit loan in Singapore
- Can you afford the loan?
Lenders will typically do their due diligence to assess whether you can pay the loan. However, it is important to use a personal credit loan Singapore calculator to determine whether you can afford the monthly repayment amount before applying.
When applying for a loan facility from any Sacco, bank, or Licensed money lender in Singapore, a good credit score is important. Any lender will be keen to assess the risk involved in advancing a loan to a customer. Clients with a high credit score attract better interest rates and the loans are approved within a short period.
3. Consider your options.
There are different types of loans so before you apply for one you should first identify the type of loan that you want. For a secured loan, one can secure the loan with collateral such as a car or house. However, for an unsecured loan, it is not attached to any collateral.
4. Choose your loan type.
When you identify your credit score and you have considered your options, determine which type of loan is best for your situation. Some lenders are flexible on how you utilize the funds while others may only approve loan applications if the money is used for specific purposes. Find a lender who offers loans that can meet your specific needs.
5. Look around and identify a lender.
Take some time and shop around for the best possible interest rate. Compare the different types of lenders and the interest rates to get an indication of what you qualify for.
6. Apply and Provide necessary documents.
After you have identified a lender, begin with the application process and provide the necessary documents. At this point, you have a chance to review the complete terms and conditions including the payment options, interest rates, and processing fees.
If you are looking to apply for a credit loan Singapore, look for SuCredit
Whether you are contemplating getting a credit loan in Singapore from a bank or money lender, the process is almost the same. It isn’t a walk in the park. It requires a sober mind, a lot of consultation and research, rest you land in the hands of loan sharks. Below are few steps that can guide you in finding the best credit loan in Singapore.
Personal identification documents such as driver’s license, passport, or social security card
Proof of income – You can produce a payslip or filed tax returns
Employer’s information if employed
Proof of residence
Simple Steps to Finding a Credit Loan in Singapore
Evaluate the Need
The first step is identifying the need that requires financing. You cannot just apply for a loan blindly. Remember this loan will attract interest at the end of the day, so it must be put to good use. The last thing that you and the lender may want is to have the loan going bad. In this regard, the lender conduct due diligence to ascertain your ability to pay. Similarly, you should also assess your capability just to make sure it works. Don’t take too much that you can’t handle, neither take too little that cannot meet your needs.
Check your Credit Score
Most lenders run credit checks to determine how likely you are to pay the loan. Before engaging any lender ensure your credit score is in good standing. If your credit score is low, first fix it by either clearing the defaulted loans or consolidating your multiple loans. The better the credit score, the more likely you are to get high loan approval rates at low-interest rates.
Consider your Options
Depending on your creditworthiness you may be compelled to either apply for a secured loan or an unsecured loan. A secured loan requires collateral while an unsecured loan does not need collateral. Also, some lenders may require you to have a guarantor depending on creditworthiness. So, it is important to weigh these options before proceeding to apply for a credit loan in Singapore.
Choose your Loan Type
Once you know your creditworthiness and have considered your options, determine which type of loan is best for your situation. Most lenders are flexible and offer personalized loans. Consider a loan that has favorable terms and one that fully meet your financial needs.
Shop for the Best Rates
There are a thousand moneylenders in Singapore. So, avoid settling on the first offer that you get. Instead, take some time to shop around for the best possible interest rate. Compare terms for several lenders and choose the one with the best terms.
Choose a Lender and Apply
Once you’ve settled on a specific lender, proceed to apply for the loan. As we’ve discussed earlier loan application process is almost the same, although it may slightly differ between lenders.
Provide Required Documents
Be prepared to submit all the required documents during the application process. This again depends on the lender.
Sign a Loan Contract
Finally, have the loan contract signed and then wait for your loan to be processed.
If you are out there looking for a reputable lender SUCredit has got you covered.
We are legitimate lenders
We offer high loan approval rates
We offer customized loans
Quick turnaround time
We have a team of professionals to guide you
There are many types of loans offered in Singapore, either by Banks or Licensed Money Lender.
Accessing those facilities does not just come automatically. There are some requirements that you have to meet before a loan is advanced to you. However, those requirements vary between lenders.
For instance, Banks have more stringent rules as compared to Singapore’s Licensed Moneylenders. This causes delays in their loan processing. On the contrary, licensed money lenders are very lenient on their processes and it only takes you a few hours or few days to get your loan processed.
If you are a first-time borrower, then you need to keep your house in order, for you to qualify for a loan from any lender.
First-time borrowers are considered risky as they do not hold any record of loan performance. It is therefore important to build your credit history to castigate trust from the lenders.
How do you create a credit history?
This is where a Credit Loan Singapore also referred to as a Credit-Builder Loan comes in.
The loan is designed for first-time borrowers and those with little or bad credit history, to help them build a good credit history and raise their credit score.
A good credit score improves the loan approval rate and makes the borrower very attractive to the lender.
Characteristics of Credit Loan Singapore
- Low risk of default
- No credit history is required
- Borrowed money is locked until the full loan is cleared
- Monthly installments are used to build loan history
- Monthly repayments are reported to a credit bureau
- Locked money acts as the security
How do you manage a Credit Loan Singapore?
Pick the right type of loan – Look for a loan with a payment plan that you can afford. Stretching your budget will only increase your chances of not meeting your monthly installment and in turn, will lead to a bad score.
Make timely payments – Timely payments build up a good score but delayed payments only hurt your credit score.
Monitor your credit score–Keep track of your score. Ensure that you can access the bureau portal and keep on checking your rating.
Use your loan proceeds wisely – At the end of the loan term, you get your loan proceeds. Ensure that you use the money wisely. For instance, you can save it for emergencies that are known to land people into bad debts.
Where to Find a Credit Loan Singapore
There are a hundred if not thousands of Lenders in Singapore. They include Banks, Money Lenders and cannot forget to mention loan sharks.
Banks have a tedious process and are very strict on the requirements, especially for first-time borrowers. On the other hand, Loan sharks will just land you to greater problems. So why can’t you try SuCredit a reputable Singapore Licensed Money Lender?
Why Choose Us?
- We are Legitimate
- Quick turnaround time
- We offer customized loans
- A Simple loan application process
- High approval rates
- We are a listening and caring partner
For more information on loans and how to apply, kindly follow this link