If you are thinking of doing renovations to your house to give it a new look but you don’t have the money for it, you should consider getting a loan. If you do decide to take this route, one thing you need to keep in mind is that it might come with high-interest rates because the lender may not ask for a guarantee.
If you are looking for a renovation loan in Singapore, we’ll share some tips below that will help you get fast approval on your loan.
Find out What Loan You Need
The first thing you need to do is find out what type of loan you are applying for. Most of the time when someone talks about a personal loan, what they are referring to is an unsecured loan. For instance, if it is not a business loan, all the others such as mortgage, car loan, credit card and payday loan are all personal loans. It is essential to determine this from the onset so that there are no complications when it comes to making payment for the loan.
If you have a low credit score which won’t allow you to get good interest rates, the person giving you the loan might consider giving you a secured loan. If you want to get good rates, you should consider putting either your house or car as collateral for the loan. One thing you need to keep in mind is that, if you are unable to pay off the loan, you could end up losing your home and car. So think wisely before putting up anything as collateral.
Credit Score
Some people will apply for loans which they don’t qualify for. You shouldn’t be one of these people. When you apply for credit, this goes to your records bringing the score down each time you ask. If you happen to apply for a loan and it is not approved, the next time you apply for one, you might have to disclose this information. This will look bad on your application once the loan officer has a look at your loan application history.
One thing you should do is ask for your credit report once a year to make sure that your records are up to date and that there are no mistakes in it. You can do this with a reputable company online. When you get this information, you can ask the lender the criteria they will follow when going through your application.
Another important thing you should do before applying for a loan to renovate your house is to improve your credit score. And the way to do this is to make sure you live within your means by avoiding debt and making sure that your bills are paid on time.
Get the Right Lender
Most banks don’t give loans to people who have a credit score which is less than 700. And if they do agree to provide you with one even with a low credit score, the interest rates will be high. It is important to find a lender who understands you and your needs to find the right match. A lender who says he wants to be paid short-term should be avoided.
When you are looking for a lender, you should look for an online one and preferably one who has given loans to people with low credit scores. An online lender is a good option because their cost of operation is small which means they can give you good rates. It will also save you money and time that you would have used going to a physical lending provider.
Income
One thing you need to keep in mind when applying for a loan is where you will get the cash to pay for it. You should make sure that your income will be able to pay the loan you want over a specified period. Remember to mention all your sources of income. This will get it approved faster.
Article Submitted by Community Writer.
