Bad Credit Making it Hard to Get a Loan? Consider Some Alternative Options

If you have bad credit, you may wonder if it’s even possible for you to obtain a Singapore flexi loan. While it won’t be easy, people with bad credit can obtain loans by exploring alternative options, such as friend and family, a home equity loan, asking a co-signer to sign, or apply at a local credit union. People with bad credit can also look to fix any errors they find on their credit report, and perhaps apply for loans where the Singapore licensed money lender already does business.

People sometimes wonder why it’s easier to obtain funding from a credit union then it is from a bank. The reason is that a credit union is member-owned, and it’s a nonprofit entity. They are usually more likely to work with individuals who have bad credit, using the applicant’s job security and personal character. A bank may reject a person based only on his credit, not considering his employment history, the amount of assets he has or other characteristics that still make the applicant a good candidate for a personal loan in Singapore.

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If the applicant cannot obtain funding from a bank or a credit union, he may want to turn to friends and family. Sometimes asking a friend or family member for money can be difficult and it does come with the risk of harming the relationship between the applicant and his friend. To make sure both parties are protected, they should obtain a lawyer and have a contract drawn up, just as there would be if the applicant was borrowing from a bank. The applicant can also consider taking a loan out of the equity in his home, known as a home equity loan. Even if the borrower has bad credit, sometimes a bank will still loan off the current mortgage based on the home equity if the applicant is current on his mortgage payments and has a good payment history.

May 10, 2016