Were all your past loan approvals got rejected? Are there any pending debts that exceed your payment capacity? The root reason can be a low credit score. Sometimes in urgency, you might have some additional expenses to meet, in which case, credit loans can be extra beneficial. Credit loans in Singapore are typically different from any other loans, as it depends on your credentials. It is one of the most secure, transparent and fastest ways of getting a loan.

What are Bad Credit loans?

The loan facility available to individuals with a short credit history or an undervalued credit score is called a bad credit loan. A poor credit score is seen as an indicator of an individual’s inability to pay back the borrowed loan amounts. Hence, it is the best option if you a low credit score or no score at all. Usually, you will be issued a fixed rate when your credits are maxed out or due to late payments. Unlike other credit loans, these can be secured or sometimes not need the backing of collateral. A bad credit loan in Singapore is issued when there are fiscal slipups or when you do not have time to build a credit history. Based on the lender, the interest rate and the threshold of credentials can alter.

What is a bad credit score?

Credit scores are calculated using a credit scoring system. Your credentials and other associations are taken into account for checking your credit score. Singaporeans wanting to check their credit score can get a report from the Central Bureau Singapore. The credit rating scale ranges between 1000 to 2000. The lowest rating is 1000, and a score between 1000 to 1723 falls as a bad credit score. Cases with credit scores falling in this bracket get categorized as “HH.”

If your scores are affected, then you may end up paying high interest or will not be eligible for any other benefits provided by the lender. Similarly, if your credit history indicates a late payment, that also may impact your credit score. However, a bad credit loan in Singapore doesn’t mean you are doomed forever. By paying the bad credit loan in time, you can regain your eligibility back.

Why you have a bad credit score?

A bad credit score can impact your future loans. Lenders are hesitant to issue any loans to individuals who have a low credit score. You get a bad credit score in the following circumstances.

  • When you miss paying bills
  • When you are way behind repayments
  • Failed credit application
  • You have other liabilities on your account and missed payments
  • When you do not possess proper financial records.

When to think about applying for a bad credit loan?

Do you have a bad credit history that makes it nearly impossible to avail any offers? Here is when you can apply for a bad credit loan in Singapore.

  • When all your previous loan applications were rejected.
  • When you have failed to pay credit card payments.
  • When all your options to manage your debts expire.
  • If your financial situation has improved, that makes you eligible to get a bad credit loan in Singapore.

How to get a bad credit loan in Singapore?

In general, lenders assess your ability to repay by checking your credit score because of increased risk and other liability issues. After analyzing your credit background, the lender evaluates the risks involved and finally provides you with the loan.

However, when you have a bad credit score, you can still get some financial assistance in the form of a bad credit loan. Let us take a peek into the prevalent qualification conditions for such a credit facility.

Common Eligibility Conditions to get Bad Credit Loans in Singapore

  • Age and Earnings-

Most lenders offer bad credit loans in Singapore to individuals aged between 20 to 65 years. The common minimum earnings threshold is $20,000 per annum for local Singaporeans and $ 40,000 for foreign nationals.

  • Availability of necessary documents

Borrowers looking to apply for bad credit loans must have some important documents. 1. Bank Statements or Utility Bills as billing proofs

  1. Passport or National Registration Identity Card
  2. Preceding three months Payslips
  3. Rent agreement, if you stay in rented premises

To avail of a bad credit loan in Singapore, make sure that you have enough money for the repayments. Many individuals find it hard to get hold of this form of loan, mainly because it is difficult to find a lender. The good news is that having a poor credit score prevents you from getting a bad credit loan in Singapore.

Before taking a bad credit loan in Singapore, you can compare various bad credit personal loans and also even take advantage of prequalify schemes that allow you to check your eligibility before a hard credit check. To ensure a smooth process, you can prepare all the necessary documents, including tax documents and employment information. Once everything is ready, do not waste time getting ready for a credit inquiry.

How to increase your chance of getting a bad credit loan in Singapore?

The key lies in your ability to make payments in time. One can consider the following aspects to enhance their chances to avail of a bad credit loan facility.

  • Timely EMI repayments
  • Having a collateral
  • Applying for the loan with a co-applicant having valuable credentials

Why choose Tradition Credit for credit loans in Singapore?

Are you looking for trustable credit loan lenders in Singapore?

Getting a credit loan in Singapore is not that easy, especially when you have a bad credit score. But Tradition Credit makes it effortless for you.

Tradition Credit is a registered, licensed money lender that facilitates fast and secured credit transactions. We are a reliable money processing team that has gained trust over the years and thrives on extending a helping hand during your struggling times. We have simplified the whole process to cultivate a seamless, transparent process. Our fully automated digital framework is the best-in-class in Singapore to provide personalized credit loans.

Contact us to experience convenient credit amenities.