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.


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.


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.


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.


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.


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



Singaporeans Get Financial Support And Frozen Government Loans Amid COVID-19 Pandemic

As you may know, many establishments and livelihoods have been put on hold due to the Coronavirus widespread. Floating in limbo led many Singaporeans to worry about their finances, particularly their bills and household expenses. This level of uncertainty is not limited to our country. It happens all over the world! Moreover, it takes a toll on developing countries whose majority relies on daily salaries and meal allowances to survive.

The Singaporean government has put a plan into place. Last Thursday, Deputy Prime Minister Heng Swee Keat said that they “will put more cash in the hands of all families to help them cope”. The cash payouts announced in Budget 2020 will be tripled!

All adult Singaporeans will receive $300, $600, or $900 depending on their income. The amount for parents with at least one Singaporean child aged 20 and younger will receive up to $300 as compared to $100 before. The Workfare Special Payment for lower-income workers will also be increased to $3,000 in cash.

Lastly, the $100 PAssion Card top-up for seniors will be given in cash instead. They will get their money directly in their bank accounts. “This is to avoid the need to queue at top-up stations during this period,” he said.

In addition to supplementary budget, the Government will freeze all fees and charges for its services for one year from April 1. Late payment charges on Housing Board mortgages will be suspended for three months. Graduates who took up Government loans for their university or polytechnic studies will receive a loan repayment suspension for a year from June 1.

Image Credits: unsplash.com

Deputy Prime Minister Heng Swee Keat also highlighted the importance of self-help groups. Grants for self-help groups will be doubled to $20 million over two years. While, community development councils will get $75 million. As he listed various initiatives on his speech, he said that they will “protect jobs, support our workers, and protect livelihoods”. All these efforts are necessary to help the citizens bounce back during these uncertain times.

Sources: 1 & 2


5 Commandments Of Borrowing Money

Whether you are borrowing your friend’s stilettos for a wedding or your mother’s mixing bowl for a party, we live in a culture that embraces the culture of borrowing.

There are certain rules involving this act such as dry-cleaning the suit that you borrowed. But, do you know the rules involving money? Here are just some commandments to get you started!


Your hard-earned income must not revolve around debt repayments. Exhaust your resources to borrow an amount that is within your means. If you cannot afford an item then, skip it first! Save enough money and direct it to completing a purchase.

Many financial experts recommend that you maintain a Debt-to-Income ratio of 20%. How do you calculate this? Simply add up your monthly debt categories (i.e., excluding mortgage) and divide the total amount by your net monthly income. Ask for your partner’s help, if necessary.


There are several reasons why Japanese citizens uphold the value of time. For starters, paying on time is one of the vital rules of borrowing money.

It goes without saying that late fees or increased interest rates add insult to injury. Not to mention, being late can dramatically lower your credit score. In the long run, your bad track record will be reported to the credit bureaus.


Borrowing money is an act built on a strong purpose and an intention of repayment. For debt categories that yield a sense of profit such as for education or for business, loaning money makes sense. The same ideal applies to loaning items that you will use for a long period of time (e.g., a car).

However, you must contemplate on loaning money for fleeting pleasures. Do you really need the latest gadgets in the market? Is attending an international music festival a crucial part of your life? Are you willing to spend thousands of dollars on a wedding anniversary weekend? Lastly, is a designer bag better than a functional one? Aim to borrow money for the right reasons.


Close your eyes and envision the last time you experienced social pressure. Was it your first day at a new workplace? Or, does it go way back in your secondary school days? At a certain degree, all of us felt pressured to do something we do not want to. It exists in all forms including financial situations.

In said challenging times, a deperate move that people make is to borrow money. You get trapped into a situation that unable you to make smart financial situations. Combat this by creating an emergency fund. Cushion your financial problems and continue to cultivate this fund even when you are experiencing debt. Please do not borrow or lend money to friends or relatives, if you are solely pressured into doing so!


Upon entering a new field, my basic instinct is to do my research about the company. Before travelling to a new country, my basic instinct is to do my research about their culture. What basic instinct do I apply before taking on a loan? Well, research of course! I recommend that you do the same thing too.

Image Credits: pixabay.com

Comparing loans is more than the mere act of scoring the lowest interest rates. You must carefully read thru the essential elements such as penalties and add-ons. For instance, some insurance companies include costly add-ons such as specific life insurance. The extra elements will increase the interest rate of the money that you borrowed. Thus, you must approach everything with extreme caution.

Sources: 1 &2


How to Improve your Credit Score?

Credit Report

Are you searching for ways to improve your credit score for a better financial future?

You can see the light at the end of the tunnel when you first realise that so much of it depends on numbers. Your credit score is one of those important numbers. It is guaranteed to influence the cost of the big ticket items you have to prepare for such as taking out a mortgage, planning a wedding, qualifying for a car loan and building up for retirement. A good credit score is crucial for these financial successes.

Improving your credit score should be a priority. The higher your score, the better your chances of getting the credit you need. So do you know your credit score? And more importantly, do you know how to improve your credit score if it’s not measuring up?

Here are five tips to help you improve on your credit score.

  1. Check your credit report and rectify any mistakes

Any incorrect information you find on your credit report could be affecting your credit score. Check your report thoroughly and get it fixed if you do see a mistake or factors that have pulled down your score. It is advisable to check at least once a year as the information in your credit report determines your credit score. Take steps to fix it and follow up to ensure it has been resolved. Otherwise, the error will remain on your report and could possibly hurt your credit score.

If you wish to dispute the completeness or accuracy of any item of information such as the account status, previous enquiries and overdue balances, do consult Credit Bureau Singapore (CBS) and CBS will post a notice in your credit file that the credit data is being disputed and is under investigation.

  1. Pay your bills on time, all the time

A missed credit card bill payment will have the greatest and longest lasting impact. The more recent the missed payment occurred, the greater that impact will be, and the more missed payments you have, the longer it will take to recover. The prescription here is clear: Pay your bills on time, all the time.

How you charge purchases to your credit card and pay off your credit card debt every month will determine your credit standing and show how much of a credit risk you are.  Paying your credit card balances in full every month helps you to maintain your credit rating and build up a good credit score. This will enable you to use credit to work harder for you, rather than becoming a slave to credit.

Where possible, always try to pay in full as rollover or outstanding balances will be charged at 24% p.a. Consider payment via GIRO to ensure payments are not late. The consistency of paying bills on time is critical to your credit score. It is simply month after month of plain-vanilla, on-time payments. This will greatly help improve your credit score if you are trying to offset the late credit card payments as these on-time payments will make positive behaviour in your favour moving forward.

Note: Default records stay on your credit report for 3 years upon full or negotiated settlement while bankruptcy data is retained for 5 years from the date of discharge from bankruptcy.

  1. Avoid multiple new credit applications within a short period of time

There is no hard and fast rule that determines the number of new credit applications that will push you from looking like a responsible consumer to an unreliable one as every bank has a different set of requirements and criteria to satisfy.

Applying for new credit facilities within a short period of time can have an adverse effect on your credit score as it would put many enquiries against your credit report. Always approach credit use with moderation.

Note: Previous Enquiries are retained on your credit report 2 years from the date of enquiry.

  1. Keep your credit active

One of the main purposes of having a good credit score is to ascertain that you are a responsible user of credit. It may seem contradictory, but it is not good enough to simply pay off your credit card bills and not utilise them again. There’s a solution, but one that should not be treated irresponsibly. Use your cards from time to time, manage within your credit limits and generate a sustained history of on-time repayments. Keep your credit active. In today’s world of credit repair, part of proving you’re a good credit consumer is actually using your credit.

  1. Commit to keeping it simple

The bottom line when it comes to credit is this: When you do pay your bills on time, all the time, keep your balances low, avoid multiple new credit applications within a short period of time and keep your credit active, your credit score will work out fine. Many of us tend to overthink credit, but it is that simple. It is all about prioritising what’s important to you.

The absolute best thing you can do for your credit is to commit to doing the following in the long term:

  • Check your credit report annually
  • Pay your bills on time, all the time.
  • Avoid multiple new credit applications within a short period of time
  • Keep your credit active

Not everyone may have a sterling credit record but the good news is, it is entirely within your power and control to rebuild your credit health. You also have to be consistent. The above factors all matter, and credit is not something that grows by leaps and bounds, but if you treat it right, it will not fail you but push your score in the right direction.


What Is Debt Check And How Do You Make It Healthy?

Debt is the amount of money borrowers by an individual or a corporation used to make huge purchases that they cannot afford under the normal circumstances. Pay this debt in a later date and you would get fined with interest! As of June 2015, the total card billings in Singapore amount to S$3,980,000.40 million! If you do not owe anybody now then, good job! You can start browsing our other articles and enjoy your debtless life. For the rest of you, there is an easy way to check if your debt is not healthy and it is called: the debt check.


The debt check gives you 4 warning signs that you are heading to a troubled path. Awareness of this will come a long way later on. Check if these apply to you:

1. You do not know exactly how much you owe. This shows that you are not in control over your debts.

2. You are usually paying late for bills and sometimes, you go over your credit limit. This could only pile up the debt even more.

Image Credits: pixabay.com (License: CC0 Public Domain)

Image Credits: pixabay.com (License: CC0 Public Domain)

3. You use your credit card as you would use a debit card just to get by. You can be charged with a higher rate of interest.

4. You are borrowing money to pay your debts. In a sense, you are currently borrowing money to pay the money that you previously borrowed. This vicious cycle is how most people get into trouble.


If all or any of the warning signs apply to you then, you need to take action – now! Take control of your debt and live a happier life by:


The first step is to gather date of where you are financially. It is important that you are aware of your current debt situation by knowing: how much you owe, to whom you owe these to, how often do you need to repay the amounts, and what interest rates are attached to these.


The consequences of not paying off some debts are more serious than others so, you must divide your debts into categories. The categories are priority and non-priority debts. Priority debts include mortgage, rent, government tax, loans, utility bills, and child maintenance (if applicable). These are priority debts because you do not want to lose your home, to be bankrupt, to have your electricity cut off, and to be summoned in court. The rest of the debts are non-priority debts.


Establish a budget to track your spending and savings. Keep track by having an online or physical journal where you log your cash flow every month. By doing so, you will get a fuller picture of where you spend too much and where to cut down costs. You can get out of debt faster if you prioritize paying it.


Here are some helpful tips to ensure that you stick to your budget:

Sources: 1 , 2& 3