No one plans to go into debt but circumstances can sometimes make it inevitable. The best thing you can do when faced with a difficult situation is to have a clear-cut plan to deal with it. Here are five situations where you should apply for a credit loan Singapore lenders offer.
- To get that job
Have you been passed over for a promotion because a colleague was better qualified on paper? This happens all the time and often leaves competent workers in the dust while the highly-educated rise to the top. The only way you can beat the system is to have both the competence in your role and the formal qualifications to back it up.
There are many easy loans in Singapore that you can get to further your education. Your loan application simply has to state that you are using it for education or training. Beyond that, you are free to use the money for a university degree, technical course, industry-specific training, or any other lessons that may help your career.
- To change careers
One thing the world has discovered since the start of the 2020 lockdowns is that there are few ‘safe’ careers. Many people have opted to switch to jobs where there is less direct interaction with others while others have taken up work that is based on remote buying, selling, and delivery. Your loan application can help you buy or lease the equipment you need to make the switch.
Among the most popular new careers are Grab and Gojek private hire car driving. You can be your own boss, work when you like, earn a more stable salary than before, and still pay off your loan with interest. It could also be just a second, part-time job.
- To earn on the side
The popularity of the gig economy has been on the rise for over a decade but it surged strongly once the lockdowns began. People just like you are discovering that they can do their regular work at home and also earn a reasonable secondary income. You can use a credit loan in Singapore to learn a new marketable skill or get the tools you need for a second job.
Some of the most popular options are in the vast IT field, including web design, graphic design, audio, and video production and editing, as well as software creation. Your loan application is more likely to be approved if you already have a steady income and are just looking to supplement your pay by buying tools (software, office furniture, etc.) with easy loans.
- To consolidate debt
Most of us already have debt in the form of home and vehicle loans, credit cards, and other personal or business loans with interest. If you are struggling to manage all those debts, are barely keeping up with the minimum payments, and have repeatedly had to pay late fines, a credit loan could help you consolidate all those loans into one.
These easy loans are designed to help you manage all your debt, but they often also come with both lower interest rates and monthly payment requirements. Those two small advantages can be the critical difference between keeping up with your financial obligations and falling into default. Remember, defaulting on just one loan can destroy your credit score.
- To build your credit
Surprising as it may seem, being in debt helps to improve your credit score. The exact equation that credit agencies calculate an individual’s score is hidden to avoid manipulation. However, one of the factors they consider is your ability to manage debt. This includes maintaining a variety of credit lines (mortgage, car loan, a business loan with interest, credit cards, etc.) over a period. As a result, someone with no debt record at all will have a lower credit rating than someone who has just a credit card.
Keep in mind that debt will only help your credit rating if you follow through with payments. Defaulting on a loan will severely damage your credit score and will affect your financial record for years.
These are just five of the many situations when you may need a credit loan in Singapore. If you are not sure if you qualify, speak to your local legal moneylender for more information. All good licensed money lenders in Singapore offer free consultation.