Loans are important sources of financing, and we all have use for them at some point in our journey to financial stability and sufficiency. On occasion, due to unforeseeable events, you may need to take a Singapore emergency loan, and during those times, it is very easy to sign up with the first loan package that seems acceptable since you don’t have the time to sort through different options.
Why shop in advance?
This is why we advise that you begin looking for a loan earlier, before the need for the loan comes. This way, when you do need the emergency loan, you simply need to go back to your records and pick out the best package depending on your present needs, income and the rates offered by various moneylenders.
Eliminating the bias of a rush
Another reason for looking for a loan asap is that in the bustle to get cash as quickly as possible to sort out a matter, it is very tempting to make multiple applications to various lenders to see which gets the approval first. While it seems like it’s saving you time, multiple loan applications just like multiple credit card applications, can have a negative effect on your approval.
When you make multiple applications, financiers will see that either as a move born out of desperation or that you have received multiple rejections. Either way, you seem more of a risk to them and they will try to steer clear.
Time to rearrange stuff
Prior shopping for an emergency loan will give you a rough idea of what is required by most lenders, and so when you need it you know exactly what to carry along with you. If there are conditions that you haven’t fulfilled, you can work in the meantime to get yourself in better shape and maintain it so that when the time comes, there is no reason for you to be rejected.
Panic can cause you to reluctantly accept a higher interest rates because your credit history is bad, but if you know that in advance, you can try to clean up your report and also lessen the amount of debt you’re carrying to maximize chances of scoring better rates.
Note: Don’t send too many applications
Try to see if you can get information by calling instead of applying to various moneylenders. Numerous applications can hurt both your credit score and chances for loan approval. So as you shop, just make calls and see what you can get from various lenders.