Suffering from a bad credit score can be extremely distressing. Most banks and traditional financial institutions will most likely shun away and not provide you with a bad credit loan in times of need.
As with all Singaporeans, it is common that we will have to take out a personal loan at least once in our lives. It may be to finance the cost of your wedding, purchase a car, or to expand your business.
If you think that there is no way out of bad credit, fret not.
Horison Credit offers our borrowers with one of the best bad credit loans in the market. We aim to lighten the financial burden by streamlining our application process. This is so that the loan can be disbursed out to you as soon as possible.
What Is A Bad Credit Loan And Its Benefits?
Simply put, a bad credit loan is suited for those who are suffering from bad credit and have faced multiple loan rejections from banks. With no other line of credit, taking out a bad credit loan with a licensed money lender will be the next viable option.
At Horison Credit, we listen to our customers and put them at the forefront of our business. Instead of rejecting you immediately, we will properly assess your financial situation and determine your ability to make repayments on time.
Some of the benefits of our bad credit loan include being:
- Fast & flexible: We understand that there are some situations where you require cash, fast. Our bad credit loan ensures that you will receive your loan within the hour, upon approval.
- Ability to improve your credit score: With instant access to the funds you need, a bad credit loan can help you pay off debts and manage your finances.
- Variety and flexibility: Bad credit loans cater to different needs and can get tailored to adjust factors such as interest rates, repayment plans and loan amounts.
- No collateral needed: As bad credit loans are unsecured, there won’t be a need for you to put up collateral in exchange for the loan.
We understand that there are certain moments in life where one may require cash, fast. Long and tedious application processes, getting rejected time and time again, can be extremely worrying and distressing.
This is why we have specially tailored bad credit loans for those suffering from bad credit.
Understanding Bad Credit
Low credit reports or credit with unfavourable marks is not an unusual phenomenon.
Several individuals have low scores classified as poor credit. Credit history refers to a person’s track record regarding how well they deal with a loan when using and repaying it.
According to the Credit Bureau Singapore (CBS), your credit score is a four-digit number, ranging from 1000 – 2000, based upon your past payment history on your loan accounts. The higher the number, the better your credit score.
Good credit increases the prospects of getting loans at reasonable rates while bad credit can make it harder for you to get funding.
People may suffer from bad credit for various reasons. This includes deprecating marks on a credit report as a foreclosure or bankruptcy, maxing out credit cards or missing payments that lead to lowering your credit scores.
Credit reports generally consist of the amount you owe and your history of payments. Your credit score gets calculated according to the details of a credit report to help lenders determine how you manage credit.
Credit encompasses both credit reports and credit scores because lenders usually consider these two factors when deciding whether or not you should get approved for a loan.
To find out the list of ways you can obtain your credit report, you can check out Credit Bureau Singapore’s website for more information.
Here Are 6 Different Scenarios In Which You Can Use A Bad Credit Loan For
There are times when you might need to borrow some cash to move forward, and this is when a bad credit loan can be useful.
Here are 6 different examples where a bad credit loan can come in handy:
1. Emergency Medical Or Auto Expenses
Unplanned or incidental costs can quickly rise, such as those that are related to medical emergencies, car repairs or car accidents.
Unfortunately, these types of situations can be financially draining as they require a substantial amount of money. A bad credit loan can help you deal with these bills and cover emergency costs.
2. Inability To Ask Family Or Friends For Money
Getting a loan from a family member or friend may not always be an option, as you may risk ruining relationships with your loved ones.
Some relatives may cause embarrassment by talking about your financial issues. A loan from a reputable lender gives you a more confidential way to borrow funds.
3. Inability To Get A Bank Loan
You might consider getting a loan from a traditional lending institution when financial challenges strike. However, such loans can be hard to get.
You may end up spending a lot of valuable time on trying to get a favourable decision from the lender.
A bad credit loan can make it easier for you to get the money you need promptly with less stringent requirements.
4. Financial Assistance With Bad Credit
If you do not have a good credit score, your loan application may get denied when you attempt to borrow from particular institutions.
A lender who accommodates borrowers with bad credit will give you the cash you need as long as you can afford to acquire the loan.
It is essential to improve your rating over some time to make it easier for you to access credit in the future.
5. Daily Expenses
You may struggle to cover everyday expenses such as rent, groceries and utilities if you face financial difficulties.
A bad credit loan can help you handle your daily payments without obstructing other financial obligations.
6. Home Renovations
If home renovations are not within your budget, you can consider getting a bad credit loan to cover the costs.
An outdated kitchen or damaged roof can be hazardous, which is why it may be necessary to get a loan to pay for renovations to maintain a safe and functional home environment.
5 Useful Tips For Maintaining Credit Scores
A good credit score offers several benefits like lower interest rates on loans and credit cards. It also affords you with easier access to a loan.
Maintaining your credit score involves using your credit responsibly.
1. Achieving Good Credit Scores
Knowing what a good credit score entails makes it easier to retain it.
Useful information includes calculating your credit score, payment history, debt level and credit mix.
You need to be aware of what can affect your credit score in regards to helping or hurting it.
2. Paying Bills on Time
All bills, including loans and credit cards, should be paid on time.
Fines and penalties can end up in your report when not paid. Make an effort to continue paying every bill on time to keep a good credit score.
3. Low Credit Card Balances
High credit card balances worsen credit scores according to the credit limit you have.
It is advisable to monitor your accounts and pay a sufficient amount to lower your balances accordingly before the end of the billing month.
4. Debt Management
An excessive amount of debt can decrease your credit score points. It is easier to maintain your credit score when you reduce your debt.
5. Limiting New Credit
Making several credit inquiries for loans or credit cards can spoil your credit score. You should only apply for credit when it is necessary and avoid opening other credit accounts.
Improve Your Credit Score And Ease Your Financial Worries With A Bad Credit Loan!
Needing cash, fast, and being constantly rejected by banks can be frightening. Especially so if you require the cash to resolve pressing emergencies.
At Horison Credit, we strive to help as many people as possible, to take a load off their financial woes.
Taking out a bad credit loan from us ensures that you will receive the money you require, quickly, at reasonable interest rates.