Personal or payday, or should you go with money lenders Singapore when you need cash? Whether you are looking to take out cash for personal use, or if you need it for business use, there are many options out there for you to turn to as a borrower. But, not all of them are safe, and not all are created equally. Then you have the bank loan, but this is only for those who have stellar credit to back them up as a borrower. So, what do you do? What do you rely on, and what should you forego as a borrower? We will take a look at a few of the options you have, so you can decide which one is going to work best for you, what to avoid, and where to go for cash.

The holiday season, a holiday for the family, or even a business venture, are a few of the reasons you are strapped for cash. And, even though you’ve been here in the past, you still have to think it through, and you have to weigh the options in front of you, so that you can make a sound decision when it is time to borrow. We will go through a few examples, so you can see what you are paying, where you are going to get the best, and where you should forego, when it comes to taking out funds with any lender in particular.

Payday loan, what is it?

As the name implies, this is a loan you take out, which you will repay on pay day. It is basically an instant loan you need, so you can get by, until you are paid by your employer. Many people who are bad credit borrowers rely on it, as no credit check is pulled; they only want to know what your income is, and that you can repay the loan when the maturation date comes to fruition. What is the downside? About 20-30% interest rates. So, you are going to be giving back quite a bit of your own money, and you can get caught up in a vicious cycle , if you are not careful with these loans. They are very risky, and for many people, you can get caught up going back and forth with many moneylenders, so you do have to think twice, and if you are in this dire situation, do not make a habit out of it.

The pros

With the payday loan, anyone is going to be approved. they are not going to run a credit check on you. So, even if you do have quite a few outstanding debts, and would not be able to go anywhere else for cash, you are going to be approved when you come here.

The Cons

The obvious one being the very high interest rates; you might as well give your money away to a charity if you are going to take out pay day loans. You can also get caught up in a potential crisis; so, if you do make a habit of this, and go to many lenders, you are eventually going to find yourself borrowing from one, so you can pay on another payday loan you have taken out. You have to be very careful, you have to shop around, and if it is at all possible, it is best for you to never rely on a payday loan, but instead, to go with alternatives as there are quite a few, when the time comes for you to borrow any cash amount from a lender.

What are your options?

You do have more than one viable loan if you do need quick cash. In fact, with most personal loan lenders in Singapore, you can get an instant response, in most cases within 1 to 2 hours after you apply. Further, you are going to get a higher lending limit, and you are also going to find that the interest rates are much lower (in fact, 1/4th of what you pay with payday), when you do take out any cash. So, you aren’t going to be giving away your money, and you still have the funds you are going to need to get by.

Student and renovation loans

If you are careful and a smart borrower, student loans are also a viable option if you are in school. With non existent interest rates, you can consolidate and pay off higher debts, all while having money in hand to pay your debts, while you are in school. For some home improvement projects, there is also something known as a renovation loan; although not all will be approved, with a lower interest rate, if you are going to be doing work on the home, this is a good way to go about doing it, and not having to worry about how much you are giving away in terms of the interest you are going to be paying on that loan.

Credit cards

Even a credit card is an alternative to consider, and is typically going to come with a lower interest rate than payday. again, you do have to be careful and borrow wisely, but if you do so, you can get by with the credit card, and repay it over time, at a much lower rate than you will with a payday lender out there.

All in All

Ultimately, pay day loans are the ones you are going to want to stay away from. Not only are they very dangerous if you are not careful, but they are basically a way to make ends meet for a few weeks. And, as you do have alternative options, which are going to come at a much lower interest rate, even if you are not a high credit score borrower, you might as well consider a few of the alternatives. You can still borrow the cash you need, and you can get instant approval on the funds, for much less, when you know what your options are, rather than simply going to a payday lender for instant cash you need to borrow.