If you are faced with a financial problem but do not need that much cash to resolve the same, your best bet is to apply for the lowest interest personal loan singapore. Personal loans are mostly unsecured thereby limiting the risk of BORROWING in the event of a default. However, if you plan to apply for unsecured personal loan, make sure that you have a good credit history and rating because this is the first thing that the low interest money lender would check. There are actually two major things that a lender would look at prior to processing your loan. The first is whether you have a good credit standing which to them is a guarantee you will make good on your loan. The other is your income. Traditional or alternative lender, it is common for both to follow some kind of protocol and loan guidelines prior to processing your loan.
The Importance of a Good Credit Rating
Your credit rating and history plays a big part on personal loan approval. It is a must therefore that you have proof of a good credit score. Since personal loan is unsecured, your credit status plays a big part on whether or not you get a loan. Even your income resources is secondary to lenders when applying for personal loan because to them it is only your credit score that will guarantee repayment of the debt. It is important therefore that you should have a very good credit history and standing to have a good chance of landing a loan. In the event that you are denied, there is another way of getting that loan and that is applying for a secured personal loan. Secured personal loan will require you to put up collaterals that are in the form of an asset (property, car, and/or any other form of asset that has a relatively high value) whose assessment should be at par or higher than the loan amount. This may be a better solution since putting up collateral will be advantageous to you in terms of interest that you will have to pay.