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Bad credit payday loans

Learn more about the eligibility requirements, costs and loan options available for people with bad credit scores.

If you are considering a payday loan from a moneylender you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore.

People who have bad credit aren’t usually eligible for traditional finance options, but can consider a payday loan if they meet the eligibility requirements. Use this guide to compare the loan options available to such applicants, as well as the pros and cons of bad credit payday loans in Singapore.

Can people with bad credit get a payday loan in Singapore?

Payday lenders in Singapore have different criteria than other credit issuers. This is how they can offer loans to borrowers with negative listings on their credit reports. However, the lender will still complete a credit check and applicants must meet the eligibility requirements. Lenders will consider your current employment, earnings and forms of income. Lenders will also consider your recent bank statements to determine if you have the ability to repay the loan.

Will I be eligible for a bad credit payday loan in Singapore?

The requirements will vary between lenders and specific loans, but you’ll usually need to meet the following:

  • Residency. Must be a Singaporean citizen or Permanent Resident.
  • Age. Over 21 years of age.
  • Income. Receive a regular income past a specified threshold.

These are just some examples of the criteria you’ll need to meet, so make sure to check the specific eligibility requirements when you’re comparing your options.

The features of a payday loan

Here are some of the features, fees and conditions that you can expect when you apply for a payday loan:

  • Online application. Applicants can apply for these products online. The application usually takes a few minutes and applicants should receive a response immediately.
  • Turnaround to receive funds. Turnaround times to receive the loan can vary between 1 hour and 24 hours, but most lenders will at least offer a one-day turnaround.
  • Different loan amounts. These lenders offer various loan amounts that often depend on your monthly income.
  • Term of loan. Loan terms can be as short as 4 weeks or last for longer periods of 36 months. Some lenders allow customers to repay the loan early without paying a penalty fee.
  • Repayment. You’ll need to repay a set amount at regular repayment intervals (such as fortnightly). Depending on the loan, the repayments may be based on the customer’s pay frequency and aren’t as flexible as some other credit products. The repayments can be directly debited from the customer’s account to the lender to avoid missing any payments. Some lenders allow customers to repay the loan early without penalty, but this will vary between providers.
  • Fees. Payday lenders operate under the Monetary Authority of Singapore, so you will be charged set fees according to its guidelines. These fees include the establishment and monthly fees, which are usually a set percentage of the amount you’re borrowing.

How to choose a bad credit payday loan in Singapore

There are many bad credit payday loans in Singapore, so it’s important to compare options and to ensure that the loan is right for you. Here are some of the factors that applicants should consider when weighing up their options:

  • Compare the lenders. Lenders will have the right to access a customer’s bank account details, so you need to be sure they are trustworthy and have a good reputation. When researching options, read through the policies and loan terms, contact the lender’s customer service team to ask any questions before applying and read through reviews and testimonials online.
  • Confirm the fees and interest rates. Payday loans charge higher fees than most other personal loans. Compare the establishment and monthly fees charged by different lenders. Applicants should make sure they can afford these fees before applying.
  • Loan extensions and redraws. Some loan companies can extend the term of the loan up to 90 days. Customers will be charged extra fees associated with this, so it should be avoided if possible. Before you sign anything, customers should ask what the terms and conditions are if they’re unable to pay back the loan on time. This includes any additional fees that will be charged if the customer can’t pay the loan back within the original loan term.

Pros and cons of bad credit payday loans

  • Online application and turnaround time. Eligible applicants can apply online and receive a response shortly after submitting an application.
  • Fixed rates and charges. The costs are fixed and won’t change throughout the loan repayment term.
  • Bad credit history. Most credit issuers won’t approve people with a bad credit history, so this is an option for customers who have negative listings on their credit report or a poor credit score. Other eligibility requirements still apply and if a customer is unable to make timely repayments, a payday loan could further hurt their credit history.
  • Higher fees. The fees are higher than for most other personal loans, which is why it’s important to pay the loan off in full during the repayment term.
  • Payday loans are not a long-term solution. Payday loans are not a quick fix or a long-term solution. It won’t help minimise overall long-term debt and people should seek help from a financial adviser if they’re struggling financially.
  • Dishonest lenders. There are some fraudulent lenders operating online. Customers must do their research and ensure they’re not applying for a loan with a dishonest lender before applying.
And as always you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore if you are considering a payday loan.

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