Renovating your home? Skip the awkward favors from friends and family members and borrow smart!

Congratulations on reaching the incredible milestone of owning your new home! As you stand in your living room, envisioning it as the perfect spot for get-togethers, reality sets in. Do I have the budget needed to create my dream home?

Sounds familiar? Well, you’re not alone.

Many of us have found ourselves in this situation. We need a temporary cash boost for home improvements but, at the same time, are hesitant to rely on awkward favors from friends or family members. 

That’s where borrowing smart comes into play. Here’s why GXS Bank, Singapore’s home grown digital bank, might have the best solution for you. 

The Best Friend To Borrow Money From

Borrowing from those close to you can be a double-edged sword. It might be easy to get that “loan” but fail to fully understand the unspoken terms, or worse, be late in paying them back, and you could end up with a very strained relationship. This is where GXS FlexiLoan steps in, like a trusted friend who understands your needs but less the drama.

The GXS FlexiLoan lives up to its name by being incredibly flexible. Whether you need a small amount for a quick fix or a larger sum for a home renovation project, it’s there to support you. 

Why GXS FlexiLoan stands out as the ideal financing option:

Flexible Borrowing

Borrow what you need, when you need it, for however long you need it

When it was launched, the GXS FlexiLoan was hailed as a revolutionary game-changer in personal finance. It is the first financing option in the market that lets you tailor your borrowing experience according to your individual needs.

Think about it – a renovation loan typically has a higher loan quantum that is more suitable for larger renovation projects. If you just want to upgrade your kitchen or create a cozy haven in your living room, you might not need such a large quantum. The GXS FlexiLoan puts control in your hands and allows you to draw down multiple loans from your credit line starting from as little as S$200, up to $100k (subject to your available credit limit). GXS FlexiLoan has got your back, on your terms. 

Low Interest Rates

Interest rates start from as low as 2.99% (EIR 5.65% p.a.) which is lower than the interest rate you’d pay if you used your credit card. By taking advantage of competitive rates, you can save on interest costs, and stretch your renovation dollar.

Flexible Repayment Options

You call the shots with GXS FlexiLoan 

With GXS FlexiLoan, you call the shots. Imagine you’re in the midst of your home renovation project, and you want to establish a clear timeline with your interior designer to keep track of progress.

The GXS FlexiLoan is designed to let you call the shots on how much and how long you want to take up the loan. This means you have the power to align your repayment plan with your renovation timeline. Want a shorter repayment period of 2 months to swiftly tackle smaller upgrades or an extended tenure of up to 60 months for comprehensive renovations? The choice is yours.

No Early Repayment Fees

Why pay more when you can save on interest?

You can enjoy interest savings with GXS FlexiLoan because interest on the loan is calculated daily, based on the outstanding balance at the end of the previous day, without compounding interest. This means that if you make an early repayment, the outstanding balance is reduced, resulting in immediate interest savings.

Moreover, there are no early repayment fees, giving you added financial benefits and motivation to settle your loan sooner. This way, you can allocate more funds towards your home renovation project and achieve your dream space without unnecessary financial burdens.

No Hidden Fees

Suppose you’re still not ready to take the loan immediately, there’s no need to worry because, with GXS FlexiLoan, you have the option to apply beforehand and keep it as a reliable standby credit line. There will be no interest charged till you make a drawdown, giving you peace of mind as a backup during your renovation journey.

Limited Time Offer

From April 3rd till June 30th 2024, when you sign up and use your GXS FlexiLoan, you stand a chance to win fantastic prizes in their dream giveaway. Prizes include a dream home makeover, a thrilling overseas adventure for two, an iPhone 15 with free Singtel mobile postpaid bills for a year. You also stand to get a S$50 Grab voucher.

Apply via the app which it is available for download on:

For more information, and to check the results of the giveaway, check here

Visit www.gxs.com.sg/flexiloan for the full terms and conditions, and start your journey towards financial empowerment today.

Footnotes:
GXS  is a digital bank proudly backed by Grab and Singtel. GXS FlexiLoan is provided by GXS. GXS holds a banking licence and is regulated by the Monetary Authority of Singapore.  GXS is a separate entity and is not associated with the businesses of Grab Holdings, Singtel, and their entities, or Money Digest.

Terms and conditions apply. For the full terms and conditions on GXS FlexiLoan and the campaign, visit www.gxs.com.sg/flexiloan. All figures in the images are illustrative only.

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Cash Crash? 5 Ways to Get That Fast Cash Loan!

Life can be unpredictable! One minute you’re cruising along, the next you hit a bump in the road (literally, with a flat tire!). Emergencies can come in all shapes and sizes:

  • Car Trouble: Your car might sputter its last breath, leaving you stranded.
  • Medical Mishap: Unexpected health issues can pop up, requiring a trip to the doctor (and potentially some bills you weren’t expecting).
  • Bill Bungle: You might get a surprise call about a forgotten bill (seriously, who calls about money that early?).
  • Aircon Apocalypse: Imagine your air conditioner decides to play dead on the hottest day of the year. Ugh!
  • Travel Turmoil: Unexpected travel needs might arise, like needing to rush to see a sick family member.

Don’t panic, buddy! Singapore’s got your back. Here’s the lowdown on 5 ways to snag some quick cash to conquer those surprise expenses:

1. Superhero Savings Account (to the rescue!)

This might be a captain obvious moment, but hey, it’s worth a shot! Having an emergency fund tucked away is your financial superhero cape. Think of it like a secret stash of cash you built up for rainy days (or leaky aircon days!). The best part? You avoid any loan drama and those sky-high interest rates.

Here’s the Winning Move: Set up your bank account to automatically transfer a bit of your paycheck (or salary bonus!) towards your savings every month. Even a small amount, like the money you make from your side hustle, can add up fast. This way, you’ll be building a safety net without even thinking about it. Then, when those emergencies pop up, you’ll have a nice chunk of cash ready to tackle them head-on!

2. Buddy Up & Borrow (from the good kind of friend)

Need a smaller amount? Maybe a close friend or family member can be your knight in shining armor. This can be a great option if you’re comfortable talking money with them and you have a solid repayment plan.

Turn Up the Awesome: Before borrowing, sit down and have a clear conversation. Agree on an interest rate (hey, even a token amount shows respect!), a specific repayment date, and stick to it! This keeps things transparent and avoids any misunderstandings down the road. Pro-tip: Don’t forget the power of gratitude! Bake them some cookies, write a heartfelt thank you note, or offer to help them out in return – good karma is always a good thing.

3. Instant Cash Loan: Fast Like Flash

Banks and licensed moneylenders offer instant cash loans. These are like fast cash superhero loans that can get approved super quickly, almost as fast as getting a library card (but way easier than memorizing that Dewey Decimal System stuff!). They’re a great option for emergencies when you need cash right away, like when your fridge decides to take a permanent vacation.

Instant loans can be a lifesaver in a pinch, but it’s important to be aware of the costs. Think of it like paying a small access fee to get to your money super-fast. The key is to use them only for true emergencies and have a plan to repay them quickly so you can avoid any extra fees. This way, you can get the cash you need fast without any long-term headaches!

Use Your Spidey Senses: Only use instant cash loans for true emergencies and borrow the exact amount you need. Think of it as a small, temporary solution, not a free money machine. Remember, responsible borrowing is key!

4. Credit Card Cash Advance: Plastic to the Rescue (use wisely!)

Do you have a credit card? It can act like a magic ATM card and let you take out cash when you really need it. But remember, it’s not without cost. Think of it as if there’s a hidden fee monster inside your card. This monster takes a bite out of your money whenever you use your card to get cash. The fees for doing this can be pretty big, so be careful and think twice before you decide to get cash on your credit cards!

Think Like a Chess Master: Cash advances come with high interest rates that start ticking immediately. Only do this if you can repay it immediately, like within your next billing cycle. Otherwise, that debt snowball gets heavy, fast, and you’ll be wishing you had used your superpowers for better financial decisions.

5. Personal Loan: Spread the Cost

Banks and money lenders offers personal loans with lower interest rates compared to credit card cash advance. Think of it as a more manageable way to borrow money. The downside? Approval might take a tad longer, like waiting in line for the hottest bubble tea flavor (totally worth it for the perfect sip, though!). But, the upside is you get more time to repay the loan, making it easier on your wallet.

Be a Financial Robin Hood: Shop around and compare different online personal loan options before you commit. Look for the lowest interest rate, low documentation fees, and a flexible repayment plan that fits your budget. Remember, borrowing is all about responsibility. Use it right, and you’ll be back to spending on fun things in no time!

Final thoughts: Before you jump into any loan, compare interest rates, fees, and repayment terms. Don’t be afraid to shop around! Also, be honest about how much you can afford to repay. These are just tools, use them wisely and you’ll be a financial whiz in no time!

There you have it! With a little planning and these handy tips, you can conquer those emergencies and get back to the fun stuff – like devouring your favorite chili crab without a care in the world! Just remember, borrowing is all about responsibility. Use it right, and you’ll be a financial whiz in no time!

 

 

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6 Tips to Improve Your Credit Score in Singapore

A credit score is a measure of your credit behavior, predicting the likelihood of you paying back loans on time based on information from your credit reports.

In Singapore, credit scores are determined by algorithms that track credit usage. Credit scores are ranked according to the following risk grades: AA is the highest, while BB or CC indicate late repayments or delinquency, and DD or lower indicate defaults. The credit score risk grades are as shown below.

Image Credits: valuechampion.sg

You can easily obtain a credit report from the Credit Bureau of Singapore’s website (CBS) for S$8.00 with prevailing GST. Alternatively, you can get it for free by applying for a new credit card or a loan facility.

Before we dive into ways to improve your credit score and manage your debt, it’s important to understand the significance of having a good credit score. A good credit score in Singapore can provide you with access to larger loans and better interest rates. You see, your credit score is a key factor in determining your loan eligibility for purchases like a flat or a car.

In addition to facilitating loan approvals, a good credit score can also have a significant impact on your career in finance. The Monetary Authority of Singapore (MAS) considers credit checks to be essential for employees and potential hires in financial institutions. Low credit scores can lead to job rejections in the finance industry.

Now, let’s focus on how to improve your credit score. As mentioned above, a good credit score can help you to elevate your career in finance and to boost your eligibility for larger loans. In a place where the cost of living is relatively high, it’s necessary for you to manage your debts and maintain a good credit score to be financially stable. Here are some tips to help you manage your debt and improve your credit score:

#1: MANAGE YOUR DEBT

Be organized. Make a list of all your debts, including your personal loans, credit card balances, and mortgages. Keep track of the interest rates, due dates for each debt, and the minimum payments.

#2: PRIORITIZE HIGH-INTEREST DEBT

Focus on paying off high-interest debt first, such as credit card debt. Prioritizing debt can affect how quickly you can become debt-free. Focusing on high-interest debt will save you more money and allow you to redirect your funds to other financial goals, while following the timeline you set.

#3: AVOID LATE PAYMENTS

Can you imagine how continuously paying for late fees can affect your motivation levels to pay off your debt? By the time you receive your third delinquent payment letter, your credit score would already have dropped, regardless of whether the bank waives your late payment fee. Late payments can hurt your credit score, so ensure that you pay your bills on time.

Set up virtual reminders to help you stay on track. Or ask your financial institution how you can set up automatic payments.

#4: KEEP YOUR CREDIT UTILIZATION LOW

Your credit utilization ratio is the amount of credit you’ve used compared to your credit limit. Maintaining low credit utilization can improve your credit score. If possible, try to use no more than 30% of your available credit.

#5: MONITOR YOUR CREDIT REPORT

Check your credit report regularly to ensure that all the information is accurate. Get your credit report from the Credit Bureau of Singapore. If you find any errors, do not be afraid to raise them.

#6: WORK WITH YOUR BANK

Do not avoid calls or letters from your bank, its debt collectors, and lawyers. Hanging up the call can affect your opportunity to find better ways to pay off your debt. Remain cooperative and reachable. If you are cooperative, your bank is more likely to help you restructure your payment schedule.

Image Credits: unsplash.com

In conclusion, managing your debt and improving your credit score in Singapore requires good financial habits and discipline. By following these six tips, you can upgrade your financial situation and achieve your financial goals in a realistic timeline.

Sources:1,2, & 3

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5 Things to Consider Before Getting a Personal Loan

Personal loan is one of the most sought-after loans in Singapore. With a personal loan, you can borrow funds from a financial institution and pay them back in fixed instalments over an agreed period. However, you typically need to meet a minimum income requirement and to pass a background check on your credit history.

Generally, it is much cheaper to get a personal loan rather than borrowing money from a moneylender. Moreover, you will need to submit a lesser number of documents compared to other types of loans such as car or home loans. These factors contribute to the popularity of personal loans.

Apart from these, consider the following points before getting a personal loan.

#1: PERSONAL LOAN HAS A MINIMUM INCOME REQUIREMENT

The eligibility for personal loan incorporates your income and your age. You need to pass the minimum income requirement (e.g., S$30,000 per annum) and the age requirement (i.e., usually under 60 years old). These strict requirements ensure that you will be capable of paying off the loans and that you will be paying on time.

#2: PERSONAL LOAN IS NOT FOR EVERYONE

Now that you know the basics of personal loans, you must remember that it is not for everyone. You need to contemplate the purpose of the loan before getting one. Compute for the monthly fees and other charges.

You see, it is better to use your extra funds if you intend to use the loan for lifestyle desires. Lifestyle desires include purchasing a new gadget or booking an international cruise. On the other hand, you need to carefully assess your business plan and financial situation if you intend to use the money for business and investment.

#3: PERSONAL LOANS CAN MAKE OR BREAK YOUR CREDIT STANDING

Examine your credit standing as it affects your personal loan application. Paying your dues on time is one way to keep your credit score on the good side. In contrast, accumulated monthly charges and overdue payments add red flags to your credit score. As a new applicant, carefully consider the terms and conditions of the bank.

#4: PERSONAL LOANS COME WITH SERVICE FEES AND OTHER CHARGES

Do not be fooled by the attractive loan prices flashed by the banks and financial institutions. You can end up paying more money due to service fees and other charges. You will pay the monthly fees along with the effective interest rates. If you plan to pay by cheques, returned checks can also be charged. Thus, new applicants must consider other forms of payment such as mobile banking.

#5: PERSONAL LOANS SHOULD BE YOUR LAST RESORT

Building an emergency fund is a part of the fundamentals of being financially savvy. When an unfortunate event takes a toll on your finances, you still have reserves. If your emergency funds have depleted, personal loans should be your last resort.

Avoid spending your personal loan to impress other people with your new gadget or with a grand getaway. Spend your extra funds on your lifestyle desires instead of borrowing money.

Personal loans have a variety of advantages and disadvantages. We hope that you can manage your finances well if you decide to avail yourself of a personal loan in the future.

Sources: 1 & 2

 

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8 questions to ask yourself before getting a personal loan

a man stressed over bills

Are you in need of quick cash for an emergency? One of the most important factors when considering applying for a personal loan is the interest rate.

Whether you’re planning to go for the Standard Chartered CashOne Personal Loan (as low as 3.48% p.a.) or CIMB CashLite (3.5% p.a.), pause for a moment to think it through.

Ask yourself these questions before getting a personal loan.

#1: Why do you need the money?

There are many reasons you may wish to borrow money. Maybe you’re faced with medical bills or unexpected home renovations.

For those looking to pay off high-interest debt, applying for a personal loan would make sense too. For example, if you have a credit card debt at a 25% interest rate per year, it would be wise to take up a personal loan with a 7% interest rate to consolidate your debts and pay it off first.

Go ahead and get that personal loan if you know it’s for a good cause, such as reducing the interest.

#2: What is the interest rate?
Interest rates

Image Credits: Investopedia

Speaking of interest, here’s our next point.

Before you borrow money, understand that the lender will make a profit by charging you interest. According to Investopedia, interest is a charge applied to you, expressed as a principal percentage. And, of course, a lower interest rate is better for you as the borrower. 

However, it’s not as simple as it seems. There are two rates to consider: Applied Rate (AR) and Effective Interest Rate (EIR). In short, AR keeps the loan principal as a constant over the life of the loan. In contrast, EIR calculates the reduction in principal as you pay down the sum.

Do more research if you are unsure of the terms.

#3: Are there other charges?

In addition to interest, there may be additional fees.

Possible charges include a fixed annual fee tagged to borrowing, a late payment fee if you miss a payment, or a change fee if you need to renegotiate your loan terms.

Some banks even charge an early repayment fee as early repayments affect a portion of their predicted profits. Be aware of these possible charges before you move forward with the application.

#4: Can you manage the loan repayments?
loan repayment plan

Image Credits: The Economic Times

When considering whether to take up a personal loan, you must decide if you can handle the repayments.

Once you know the interest rate, extra fees, and anticipated monthly repayment amount, make necessary calculations from your income to see if you can afford to pay it back.

To do so, you want to write out a detailed budget including your spending needs on groceries, household bills, and miscellaneous expenses. From the breakdown, see if you have enough leftovers to weather an unforeseen financial storm.

Yes, that’s for your rainy days.

#5: How will it affect your credit score?

Lenders use credit scores to decide whether to issue you a loan. Credit scores affect loan terms such as interest rates, tenure, and principal limits.

Your payment history, the ratio of debt to credit, the age and quantity of your accounts you own, and any derogatory reports such as loan defaults can affect your credit score.

If you think you can do without a personal loan this time around, then skip it. Ensuring that your credit is in good shape will help you get a better loan in the future when you seriously need it. 

#6: What is your borrowing limit?
Singapore 50-dollar notes

Image Credits: Yahoo Finance

Are you aware that The Monetary Authority of Singapore (MAS) has established a Credit Limit Management Measure (CLMM)?

It prevents financial institutions from lending new credit facilities to borrowers with debts greater than six times their monthly income. This credit limit helps to protect borrowers from getting into high debts too much to bear.

And of course, other than CLMM implemented by the authorities, other factors will also affect your borrowing limit. This includes your credit score, monthly salary, and the relationship you have with the bank.

#7: How reliable is the lender?

Be mindful that some people and institutions may not be worth your time and transaction in any situation involving money.

If a lender fails to run a credit check, seems disorganised, or cannot answer basic questions, be wary. You want to deal with a reputable banking institution and not one that agrees to a loan without reviewing your credit history.

#8: When will you get the funds?
two men shaking hands

Image Credits: Jmc Accounts

Most people seeking personal loans are racing against time. If that is a factor, you want to find out how long is the approval process. From approval to disbursement of the loan, speeds will vary from bank to bank.

Here are three personal loans promising instant processing times:

Final thoughts

The decision to borrow money should be considered carefully. Evaluating and understanding your loan’s reasons, the interest rates, loan repayments, and more mentioned in this article can help you make the best decision possible when seeking a personal loan.

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