Payday loan Singapore is a popular loan available by moneylenders. While it is a popular loan scheme, many people actually do not know what it is.
What Is A Payday Loan
Also known as payday advance, salary loan, cash advance loan and other similar terms, a payday loan is a small short term unsecured loan. An unsecured loan refers to loans that does not require protection from a guarantor, or any collateral in the case where the borrower faces a bankruptcy.
Payday loan is a short-term loan that provides you with the money you need to tide you over till your next pay check. The interest rates are typically higher than average.
What Do I Need To Take A Payday Loan
As it is said in the name, you need to have a payday to take a payday loan. As such, most moneylenders typically check your employment status and records.
Moneylenders usually do not check your credit score for payday loans. As such, it is not necessary to have a good credit score. In fact, your credit rating can be improved when you take and pay off a payday loan. When you apply for a payday loan, credit ratings are notified. Once the loan has been repaid, positive feedback is sent to the authorities, helping your credit rating improve.
What Are Payday Loans Most Suitable For?
If you have an emergency situation where you need quick cash before your next pay check arrives, a payday loan is suitable for you. Payday loans can be granted quickly and are thus suitable for those who do not want to be a hassle to friends and families. In addition, payday loans are suitable for employed individuals who need some quick cash before their next pay day.
For individuals with a bad credit rating, payday loans are a way for them to get a loan. As moneylenders do not check your credit rating for payday loans, people with bad credit ratings will be able to get a loan as long as they are employed.
Payday loans are not suitable for individuals looking for a cash advance beyond the amount of income they are earning. Finally, in order to take this loan, borrowers need to be at least 21 years old.
In order to take a payday loan, apply with a licensed moneylender. You will need to provide your personal details such as your name, and employment records. Once you have applied, the company will contact you to drop by their headquarters to settle the loan and collect your money.
When taking a loan, it is important to check that the moneylender is licenced to prevent from getting scammed.