4 Reasons Comparing Money Lenders is Helpful for Borrowers
There are lots of moneylenders in Singapore today. Not all of them are created equal, though, so you may find a few bad apples among them.
The best thing to do when taking out a loan is to find a legalised money lender in Singapore. This way, you can be sure that they are operating lawfully. Even then, it’s still a good idea to compare different lenders.
Why should you compare lenders first before borrowing money? Here are four important reasons.
You can find the lender with the best loan terms
Different lenders have different terms even for similar loans. They can charge different interest rates and have varying lengths of loan tenure. Monthly repayments may also vary for different lenders offering the same type of loan.
With that, comparing lenders is a good idea. Comparing will help you find a lender that offers terms you are comfortable with for your financial situation. It’s often not the first lender you come across; you’ll have to shop around.
The most important thing you should remember is this: You can refuse to sign a loan contract if you are against any of the terms. It is your right as a borrower to choose your lender.
You can find a lender with flexible terms
Some lenders are friendlier to clients than others. Some are very open to negotiating the terms laid out in their loan contracts. You can work easily with these lenders to create terms that make it easier for you to ensure timely repayments.
Not every lender is that nice, so you will have to find them. Explore the lenders around Singapore and find one who is flexible and lets you negotiate terms easily.
You can borrow only from lenders with excellent reputations
In lending, reputation is key, and it works both ways. Lenders want to check your credit score first to find out if they can trust you to repay your loan. On the other hand, you also want to make sure your lender operates ethically and legally.
Comparing lenders lets you find those with excellent reputations in the industry. The more people trust a certain lender, the better their services are. Also, trustworthy lenders will make repayments easier for you.
You can avoid scammers
Scammers abound in the moneylending industry. But if you compare lenders, you can be more sure that you do not take out a loan from a scammy lender.
The best way to avoid scammers is to check with the Ministry of Law (MinLaw) if the lender is registered. If your chosen lender is in the MinLaw’s database, you can be more certain that they operate a legitimate lending business. In case you get scammed, the lender is accountable to the MinLaw.
Conclusion
Comparing moneylenders is something every borrower must do. It lets you find the best lender with good loan terms, flexibility, and excellent reputations. This way, the process of applying for a loan as well as repaying it will be less stressful. It’s also easier to build your credit score when borrowing from reputable lenders.
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