How To Choose The Best Personal Loan For Your Needs

by  in Credit & Loan
0 Comments

Life is full of unexpected twists and turns. Car repairs, medical bills, or maybe that dream vacation you’ve been eyeing—whatever the reason, sometimes you need a little financial boost. That’s where personal loans come in. They provide quick access to cash when you need it most.

But many people find themselves overwhelmed by the sheer number of options and confusing terminology. It’s easy to feel lost or even make a decision you’ll regret later. This comprehensive guide will explain the ins and outs of personal loans, help you understand the key terms, and walk you through the steps to find the perfect loan for your unique situation. Read on.

Understanding Personal Loans

Personal loans serve a specific purpose and can be incredibly handy in the right situation. Several different types are available, each with unique features.

Secured vs. unsecured

Secured loans require you to offer something valuable as collateral, like your car or savings account. This gives the lender a safety net, so they often offer lower interest rates. Unsecured loans don’t require collateral, but they might come with slightly higher rates.

Fixed-rate vs. variable-rate

A fixed-rate loan means your interest rate stays the same throughout the entire loan term. On the other hand, variable-rate loans can fluctuate with market conditions. It might be lower initially, but it could also rise, making your payments unpredictable.

Debt consolidation loans

If you’re juggling multiple high-interest debts (credit cards, student loans, etc.), debt consolidation personal loans could be your lifesaver. You combine all your debts into one loan with a lower interest rate, making it easier to manage and potentially saving you money in the long run.

july 29.7.jpg

Here are some key terms you’ll encounter:

  • Principal: This is the amount you borrow, the core of your loan.
  • Interest rate: Think of this as the lender’s fee for letting you borrow their money. It’s expressed as a percentage of your principal.
  • APR (Annual Percentage Rate): This is a broader measure of the cost of borrowing, including both the interest rate and any fees.
  • Origination Fees: Some lenders charge an upfront fee to process your loan application.
  • Prepayment Penalties: Some lenders might charge a penalty if you pay off your loan early.

Knowing these terms helps you understand loan offers, compare options, and ultimately make the best decision for your financial well-being. Don’t be afraid to ask lenders questions if anything is unclear. After all, knowledge is power!

Assess Your Financial Needs

Before you apply for a loan, take a step back and assess your financial needs. Start by asking yourself some key questions:

Why do you need a personal loan?

Be honest with yourself. Is it for a home renovation project, consolidating high-interest debt, or covering unexpected medical bills? Knowing your purpose will help you determine the right loan amount and repayment term.

How much do you need to borrow?

Don’t be tempted to borrow more than you actually need. Crunch the numbers and figure out the exact amount required to achieve your goal. Remember, every dollar you borrow will need to be paid back with interest.

How long do you need to repay the loan?

Shorter loan terms mean higher monthly payments but less overall interest. Longer terms offer lower monthly payments, but you’ll pay more interest in the long run.

What is your ideal monthly payment?

Take a look at your income and expenses to figure out how much you can comfortably afford to pay each month. There are plenty of online calculators that can help you estimate payments based on different loan amounts and terms.

Answering these questions will help you narrow down your loan options and choose the one that best suits your situation.

Research Lenders

Each lender offers different loan products with varying interest rates, fees, and terms. It’s crucial to shop around and compare your options to find the best fit for your needs.

Traditional banks

Traditional banks offer a wide range of financial products and services, including personal loans. If you already have a relationship with a bank, they might offer you preferential rates or terms. However, they tend to have stricter eligibility requirements, especially for those with less-than-perfect credit.

Credit unions

Credit unions are member-owned, not-for-profit organizations that often offer competitive rates and personalized service. They might be a good option if you’re looking for a more community-oriented approach.

Online lenders

These lenders offer convenience and speed, with many applications processed entirely online. They may be more flexible with their eligibility requirements, but their interest rates can vary widely, especially for those with lower credit scores.

Peer-to-peer lending platforms

They connect borrowers directly with individual investors, cutting out the traditional middleman (the bank). This can lead to more flexible terms and potentially lower rates, but it’s important to research the platform and its reputation.

So, how do you actually research lenders? Here are a few tips:

    • Check their websites: Most lenders list their loan products, rates, and terms online.
    • Read reviews and ratings: See what other borrowers have to say about their experiences with different lenders.
    • Talk to friends and family: Get recommendations from people you trust. They might have had positive experiences with certain lenders.
    • Use comparison tools: Many websites and financial tools allow you to compare multiple loan offers side-by-side.

Remember, don’t be afraid to ask questions and negotiate with lenders. You’re the customer, and you have the power to choose the lender that best suits your requirements.

Evaluate Your Eligibility

Lenders have specific criteria they consider in determining whether you’re a good candidate for a loan. Here are the main factors they check:

Credit score

Your credit score summarizes your credit history, including your payment history, outstanding debts, and credit utilization. A higher score signals to lenders that you’re a responsible borrower.

Income and employment history

Lenders will typically ask for proof of income, such as pay stubs or tax returns. A stable job history demonstrates reliability and increases your chances of approval.

Debt-to-income ratio (DTI)

The debt-to-income ratio measures your monthly debt payments (including credit cards, student loans, and potential loan payments) relative to your income. Banks prefer borrowers with lower DTIs, as it indicates they have more disposable income to handle additional debt.

By understanding these factors, you can set realistic expectations and increase your chances of finding a loan that works for you.

Final Thoughts

The path to securing the best personal loan might feel winding, but with a bit of knowledge and the right tools, you can find something that aligns with your needs and financial goals. So, take a deep breath, trust in your newfound knowledge, and embark on your journey towards financial freedom. The right personal loan is out there, waiting to help you turn your dreams into reality.

Read More...

7 Purchases to Always Charge to Your Credit Card

by  in Credit & Loan
0 Comments

Using a credit card can be a savvy move for various purchases, thanks to the added security and potential perks. Beyond building a strong credit history, some purchases are best made with a credit card to maximize these benefits.

Many cards offer rewards like points or cashback, which can accumulate over time, essentially giving you “free money” if you consistently pay off your balance without incurring interest fees. Remember to use your credit card wisely!

SCORING EVENT TICKETS

Credit cards often offer special access to event tickets. Many card companies have partnerships with event promoters or venues, giving cardholders the chance to buy tickets for concerts, sports events, and other activities before the general public. Sometimes, there are even exclusive events just for cardholders.

For instance, when Taylor Swift’s concert tickets in Singapore went on early sale, UOB cardholders had the advantage of grabbing tickets before others.

PURCHASE BIG-TICKET ITEMS

When buying big-ticket items like refrigerators, laptops, or other electronics, using a credit card is a great idea. Not only can you earn significant rewards points, but many credit cards also provide additional insurance on these items.

This might include extended warranties that double the manufacturer’s warranty or price protection if the item’s price drops shortly after purchase.

MAKE TRAVEL ARRANGEMENTS

Booking travel with a credit card can offer substantial benefits. Many cards provide travel-related perks such as trip cancellation or interruption coverage, lost luggage insurance, and even emergency medical coverage. These benefits can save you from purchasing separate travel insurance.

Travel-themed credit cards typically offer higher rewards points for travel-related expenses. Plus, a credit card is often required to secure bookings for flights, accommodations, and car rentals.

SECURE OVERSEAS PURCHASES

Credit cards are generally more widely accepted than debit cards when traveling abroad. They are also safer to carry compared to large amounts of cash, as lost or stolen credit cards can be cancelled easily. Some credit card companies offer favorable exchange rates, providing additional savings.

Before traveling, notify your credit card provider of your itinerary to avoid any security issues or hindrances with your card while overseas.

ADD TO CART

Using a credit card for online shopping offers several advantages. Credit card transactions are easier to trace and often come with protections against fraudulent charges. Many cards also provide insurance for items lost or damaged in transit.

Always ensure that you never send your credit card information over email or text to safeguard your details.

CHARGE YOUR BUSINESS PURCHASES

For business owners, using a credit card to manage expenses can simplify accounting and help build business credit. Many business credit cards offer cash-back rewards or statement credits for purchases like internet services, cell phone plans, and office supplies, which can aid in tracking and managing cash flow.

Using a dedicated business card for recurring expenses can also help with tax deductions.

PROTECT PHONE PURCHASES

If you enjoy buying products via home shopping channels or infomercials, always use your credit card. This provides protection if you don’t receive the item or if it doesn’t match what was advertised. Credit card protections can save you from potential scams or disappointments from phone orders.

Image Credits: unsplash.com

Using your credit card for these types of purchases can provide additional security, rewards, and peace of mind, making it a smart choice for managing your finances.

Sources: 1 & 2

Read More...

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

by  in Credit & Loan
0 Comments

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.

Read More...

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

by  in Credit & Loan
0 Comments

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!

 

 

Read More...

Standard Chartered launches the new Journey Credit Card and you can earn up to 3 miles per dollar

by  in Credit & Loan
0 Comments

The ‘X Credit Card’ is rebranded to the new ‘Journey Credit Card’ with enhanced benefits

Are you ready to embark on an incredible journey? Look no further than the Standard Chartered Journey Credit Card, the ultimate companion for all your travel aspirations. Packed with fantastic benefits and unmatched rewards, this card will take you places you’ve only dreamed of. Let’s dive into the incredible features that make this card a must-have for avid travelers.

First and foremost, the Standard Chartered Journey Credit Card offers an amazing welcome gift of up to 45,000 miles for new cardmembers! Yes, you read that right—just for joining the Standard Chartered family, you’ll receive a generous welcome gift that will kickstart your travel goals in the most extraordinary way possible. Imagine the possibilities as you jet off to your dream destinations, all thanks to this exceptional welcome offer.

Here’s how can you pick up the bonus miles:

  • Up to 25,000 miles: Earn additional 5 miles per dollar from eligible spends within 30 days of card approval, capped at S$5,000
  • 10,000 miles: From annual fee payment of S$194.40
  • 10,000 miles: From S$5,000 eligible foreign currency spends

This limited-time offer is is valid until 30 June 2023. T&Cs apply.

But the journey doesn’t end there. With the Standard Chartered Journey Credit Card, you’ll earn up to 3 miles for every dollar spent, ensuring that every purchase you make brings you closer to your next adventure. This is the only card where you can earn 3 miles for every S$1 spent on online transactions from transportation, grocery and food delivery merchants. On top of that, you can earn 2 miles per S$1 for foreign spends and 1.2 miles for every S$1 spent locally.

Whether it’s booking flights, accommodation, dining at your favorite restaurants, or indulging in retail therapy, your spending will be rewarded with miles that can be redeemed for flights, hotel stays, and a variety of other travel experiences. With this card, every dollar spent is an opportunity to unlock remarkable rewards.

But that’s not all. The Standard Chartered Journey Credit Card comes with a host of other enticing benefits designed to enhance your travel experiences. Enjoy exclusive access to airport lounges, where you can relax and unwind before your flight. Take advantage of complimentary travel insurance that provides coverage for you and your loved ones, giving you peace of mind wherever you go. Additionally, the card offers attractive dining and lifestyle privileges, allowing you to enjoy discounts and special offers at a wide range of partner establishments.

Applying for the Standard Chartered Journey Credit Card is quick and easy. Simply fill out the online application form on SingSaver to get started. As part of an ongoing offer till 31 May 2023, you will also receive an additional $20 Cash via PayNow plus 1x ReboundTag, on top of the 45,000 miles!

For more information about the Journey Credit Card, click here.

Read More...