Payday loans are short-term loans normally used by people to get through a tough financial situation. Although they are considered to be more expensive than traditional borrowing, payday loans remain very popular in Singapore and other areas because of the ease and speed of getting them. They are also common because, in most cases, you do not need to have a good credit score or even credit history for you to get the loan.
Payday loans are normally taken in small amounts, and they are typically paid back within a few weeks. If you are looking for a good payday loan provider in Singapore or the surrounding areas, here’s how to get the right one for you.
Fees and Rates
Different companies charge different rates for payday loans. Some have hidden fees which you only realize when paying the debt. Choose a lender who charges relatively low and within the market rates.
Ensure that you clarify whether the said interest rate is daily, weekly, or monthly. You might be attracted by a lowly quoted interest rate only to realize that it is charged daily. Take time to understand the fees and rates charged in case of late repayment or when you want to roll-over the loan. The right lender is the one whose charges are as low as possible.
Terms and Conditions
Research on the terms and conditions of different payday loan lenders to determine the right one for your needs. Some lenders require that you pay the full loan amount at a pre-set date without fail. Others offer you the flexibility of rolling over the loan for a particular period of time. The right lender should offer flexibility on repayment period, but you should always pay as soon as you can since the flexibility comes at an extra cost.
Customer Sevice Portal
There are many payday lenders whose websites do not have a customer service portal feature. This should be a red flag as it puts in place a communication barrier between lenders and borrowers. A good and genuine lender will provide customer service support features including email address, live chat, phone number or their social media pages.
This allows you to have an interaction with the lender before choosing to work with them. By talking to the lender, you can tell whether they are genuine and trustworthy. It also gives you the chance to ask questions and get any clarification you might need.
Compliance With Local Authorities
This is how you separate a genuine payday lender from a fake one. Legit lenders comply with the rules and regulations in the industry. Ask the lender to show you proof of licensing. You can also check online to confirm that the lender is licensed to work in the country.
When choosing a payday loan provider always take your time to research about the company. This guide will help you choose an affordable, legitimate lender to work with.