Bugis Credit grab taxi

What Every First-Time GrabTaxi Driver in Singapore Should Know

GrabTaxi has changed the dynamics of public transportation in Singapore that it has become a lucrative part-time job.

One person even reportedly earned more than $12,000 in just five weeks of being a private-hire driver, so it’s possible to earn more or less the same amount if you sign up as a GrabTaxi driver.

If you’re looking for loans designed for those who work for GrabTaxi, Singapore has several licensed money lenders where you can apply for a hassle-free personal loan. You can even get the money in as fast as 30 minutes with complete documents.

How Can You Apply for a GrabTaxi Driver Loan?

Bugis Credit Application for Loan

Licensed money lenders in Singapore are the best option for GrabTaxi drivers, especially for those without credit histories. Banks will require you to have at least 12 months of payment history to determine your creditworthiness.

You don’t have to worry about having no credit score if you submit the following documents to a licensed moneylender: NRIC card, taxi driver’s vocational license (TDVL), taxi pass, at least seven days of job summaries, car rental contract, proof of income (e.g. driver commissions and salaries), proof of billing address and your income for 2019.

How Does GrabTaxi Work?

Bugis Credit How Does GrabTaxi Work

Once you get the money, the next thing to do involves being aware of GrabTaxi’s system. Current taxi drivers can still sign up for the system even if they are under contract with an existing fleet operator.

The Land Transportation Authority allows Grab to operate as a third-party taxi booking app in Singapore, so there should be no problem if you work as a part-time GrabTaxi driver.

Interested parties should also apply for a TDVL, which will be handy in case you decide to switch from GrabTaxi to a private-hire driver. You can apply for a TDVL when you are at least 30 years old with a valid Class 3 or 3A driver’s license for 12 months in Singapore.

Those who don’t meet the age requirement will have to apply for a private-hire car driver’s vocational license (PDVL), which will require them to have valid Class 3, 3A, 3C, or 3CA driver’s license for two years up to the time of application.

The course fee for a TDVL costs $294.25. You can use your SkillsFuture credits to pay up to $240.75 of the price. The course will have two sessions of eight hours each for two days.

You need to pass three one-hour exams that will test your knowledge on service quality, health and safety; taxi and private hire car rules and regulations; and route planning.

PDVL courses cost $155.15 with up to $128.40 being SkillsFuture claimable. You need to attend an eight-hour session for one day and pass two exams about service quality, health and safety, and taxi and private hire car rules and regulations.

How Much Can You Earn?

Bugis Credit How Much Can You Earn

A private-hire or GrabTaxi driver in Singapore can earn as much as they want, although the limitless income demands a lot of your time. One person who earned more than $12,000 in five weeks had to work between 12 and 14 hours for six days each week.

Private-hire drivers can earn $30 per hour on average during peak travel hours and $25 per hour on average at off-peak hours.

Take note that the hourly rate refers to your gross earnings. The actual amount will depend after you deduct the expenses from fuel, parking fees, electronic road pricing and other miscellaneous costs.

GrabTaxi drivers should also account for the rental vehicle fees when they create a target income figure. Taxi operators in Singapore charge from $75 to $105 per day on average for renting out their vehicles, while diesel expenses cost between $30 and $50 per day.

This means that you must earn at least $105 daily just to break even with the recurring fees.

GrabTax and private-hire drivers, however, can deduct their expenses on diesel, parking, rental vehicles, and vocation license fees worth up to 60% of their taxable income.

The 60% deemed expense on taxes is applicable to anyone whether they work part-time or full-time drivers

Beware of Fraudulent and Illegal Money Lenders

Bugis Credit - beware of fraud

Don’t fall for unscrupulous individuals who promise to lend money without the need to submit documents. This might seem attractive, but you could be dealing with a loan shark.

If you need money to pay for your vocational license and other fees for signing up with Grab, a licensed money lender remains the best way to do so.

Illegal money lenders trick people, especially those who are desperate, into borrowing money from them. Some of them will not require you to sign a document, which is already a red flag for borrowers.

Loan sharks sometimes don’t have a signed contract with you because they know that it’s illegal for them to charge sky-high interest rates. Licensed money lenders are not allowed to charge more than a 4% rate every month, unlike illegal lenders’ rates that can reach up to 20%.

The absurd charges make it almost impossible to repay your loan with them. Loan sharks want you to be trapped in an endless cycle of debt payment and when you’re unable to pay your dues, they won’t think twice of resorting to harassment and violence.

Conclusion

Being a GrabTaxi driver in Singapore can be a lucrative part-time job, but you need to take all expenses into account to earn a decent salary. Licensed money lenders won’t use force or unethical practices.

The Monetary Authority of Singapore and the Ministry of Law bound them to comply with regulatory standards, particularly for debt collection.

Always check the Registry of Moneylenders to determine the legitimacy of a licensed money lender. Click here to know more about Bugis Credit’s loan products and we’ll help you with choosing the right one.

extra income 5 Ways to Earn Up to $3,000 From Side Gigs in Just 1 Month

5 Ways to Earn Up to $3,000 From Side Gigs in Just 1 Month

Are you constantly living from paycheck to paycheck? Perhaps you like to earn more money and save for emergencies? The gig economy has been flourishing in recent years thanks to the advent of social media and the Internet.

While there are lots of jobs to choose from, some of us want to earn more in less time. Here are five simple ways to earn money even with a full-time job. Some of them can even turn a profit of up to $3,000 in just one weekend!

Take Out Your Camera and Learn Photography

Those who are fond of snapping photos and love taking them from different angles should consider a part-time job as a photographer. The pay varies depending on your experience and type of photos. Novice photographers can earn at least $5 to $10 per project for passport-size pictures. Photo-editing services start at $0.5 per photo for beginners.

Headshots are more lucrative with prices ranging up to $100 per project, and that’s just for newbie photographers. Amateur photographers usually charge at least $100 per hour for photoshoots and $150 per day to work as an assistant. Once you establish a loyal customer base, you can take part in the wedding photography business. Professionals in this field earn up to $3,000 per project. If you like to teach, you can charge up to $500 per student.

Another easy way to earn more in a short time requires you to sign up for photography contests. Make sure you have the best photos in your portfolio and earn up to $2,500 for each competition.

Get a License as a Personal Trainer

Gym enthusiasts might as well profit from the time they spend at fitness centers. You can apply as a personal trainer during weekends, when demand seems to be higher and therefore have more need for trainers. You don’t need to have a perfectly sculpted body to become a legitimate trainer, but it helps to maintain a good physique. There’s no better way to achieve this than hitting the gym and earn money at the same time.

Personal trainers earn between $75 and $150 per hour. If you work at least four hours per day during weekends, you can earn up to $1,200 in a month or even more when you work on holidays. You must have a Certified Personal Trainer qualification before you can accept clients. Other certifications can improve your competency and your professional fee.

Be a Freelance Tour Guide

Bugis Credit Pte Ltd Be a Freelance Tour Guide

A tourist guide probably has more consistency in earning money than other side gigs, due to the steady flow of tourists from around the world. Millions of foreigners visit the country each year with the number sometimes exceeding more than three times the local population.

You should have an extensive experience in staying at different places in Singapore to boost your qualifications, which can include expertise on the best dining spots and shopping centers across the mainland. Freelance tour guides earn from $80 to $150 per hour. Anyone can become a tour guide with the right attitude, personality and knowledge on as many things as possible about Singapore.

Get Rid of Your Old Items

Carousell is one of the places for owners to eliminate old items and exchange them for cash. The amount that you can earn depends on the value of items. The general rule for this: the harder it is to find an item anywhere, the higher the price tag. Limited-edition books, vintage electronics and collector’s items are some of the examples of rare products.

You can even sell your car in Carousell, which can turn into a sizeable profit if you set the right price. Online sellers should expect buyers to haggle on the listed price, so the best way to earn money will involve a price markup before selling the item to offset a likely lower price offered by customers.

Practice Your Public Speaking Skills

Bugis Credit Pte Ltd Practice Your Public Speaking Skills

Do you always volunteer to be the emcee for special occasions like weddings and birthdays? An events host can earn from $100 per hour, which can easily turn into thousands if you accept multiple gigs in a month. Some experienced emcees even earn five-figure salaries just by getting on the stage and speaking in front of a large audience.

This type of side hustle works best for people who aren’t shy. Those who are just starting their freelance stint as a host can charge a lower rate, possibly $50 for two hours. You can market yourself to more events (not just birthdays or weddings) and build a wider network to earn more money.

What You Should Do Before Choosing a Side Gig

Build a strong online presence to reach your target audience. Social media accounts will be your best resources for advertising your services. Don’t expect to earn a lot in your first month, as your rate gradually increases once you have more connections and clients.

You should also maintain a website to make it easier for potential clients to see your portfolio, especially if you plan to be a photographer or events host. If you’re having trouble with finding clients, you can start by asking friends to refer you to their connections. You shouldn’t offer your service for free when you’re particularly good at it.

Conclusion

There’s no quick and easy way on how to earn money in Singapore. A side sig requires determination and discipline before it can become lucrative. If you need money to jumpstart your freelance career, you should consider applying for a personal loan (e.g. for buying photography equipment). Licensed money lenders such as Bugis Credit offer competitive rates and flexible payment terms. Call us today and find out more about our services.

Bugis Credit What First-Time Buyers in Singapore Must Know About House Hunting

What First-Time Buyers in Singapore Must Know About House Hunting

There are several factors that will influence the actual cost of buying a studio apartment. Singapore enforces different rules for families and single individuals, particularly for those who plan to buy a Housing & Development Board (HDB) flat.

Aside from marital status, the price of buying your first apartment will depend on your income and the type of property. Some of the common types of apartments include mature and non-mature build-to-order (BTO) flats, Design, Build and Sell Scheme (DBSS) flats, and Executive Condominiums (EC). The HDB offers 99-year leasing deals for these properties.

The Rules and Requirements

HDB has imposed new income ceilings for buying flats, which means more people have access to housing options. A typical family who plans to buy a new flat shouldn’t earn more than $14,000 per month. The same income ceiling applies to a purchase of a resale flat on the open market with CPF Housing Grant.

Single buyers who are 35 years old and above shouldn’t earn more than $7,000 per month if they plan to buy a new two-room Flexi flat in a non-mature property. A non-mature estate simply means that there are fewer facilities than in mature properties. This is also the reason why it’s more expensive to buy an apartment in a mature estate.

Those who are orphans and have no siblings can apply for an HDB purchase upon turning 21 years old, pursuant to the Orphan’s Scheme. If you and a friend plan to be roommates, then a joint applicant is possible for up to four unrelated people under the Joint Singles Scheme.

Bugis Credit The Prices of Properties
The Prices of Properties

There are limited prices for a BTO studio apartment either in a non-mature or mature estate in Singapore. ECs and private condos (PC) cost at least $420,000 and $600,000, respectively. These are already too expensive for median-income earners. A BTO HDB Flexi flat may cost around $75,000 to $158,000 depending on the location. A drawback of buying this kind of property requires a long waiting time of at least three years.

The units are also restricted to two-room properties between 35 square meters and 45 square meters. Competition among buyers is also noticeable because of fewer units, and you can’t sub-let your house when you acquire one. A resale two-room HDB flat may cost between $250,000 and $343,00 on average. You can buy in as fast as six months without any restrictions on the number of rooms starting from three-room units.

You can also sub-let a resale flat, but the possibility of buying a property with defects is much higher because another person previously owned it. A renovation may be expensive as well because of existing fixtures that may need replacements.

If you plan to buy a BTO flat in a non-mature district, the average price for a three-room property will cost from $150,000 to $190,000. Four-room properties may cost between 295,000 and $350,000, while five-room units may cost from $390,000 to $500,000.

BTO flats in mature districts may cost $200,000 to $300,000 for three-room apartments. Four-room units may cost between $290,000 and $320,000, and five-room apartments may range from $400,000 to $550,000.

Factors Affecting Prices of Resale Flats

By now, you may be thinking of just buying a resale flat to avoid a long waiting time and have more options. Those who decide to acquire one should be prepared to spend more money. Resale flats are more expensive because real estate prices appreciate every year. Some properties in Singapore, particularly those in the central business district, may even have higher prices after just several months!

Owners of resale flats also place a premium, which is called a Cash Over Valuation (COV), in addition to the actual property value. Some sellers may put up to $50,000 premiums on the price tag, but there are properties with no COVs. If you see a listing on a zero-premium unit, you should expect bids to pour in from several buyers. Many are willing to pay a higher price than the seller’s quoted figure, especially if the unit is in a strategic place (e.g. near an MRT station).

 

Bugis Credit How Much Should You Save?
How Much Should You Save?

You should set aside at least 5% of the unit’s purchase price for cash down payments. If you borrowed money through an HDB Concessionary Loan, you will be required to pay 10% upfront. You can use cash, a CPF Ordinary Account or a combination of both to settle the down payment. Singaporeans or permanent residents who borrowed money from a bank or licensed money lender should pay 25% of the property’s price.

The option fees for buying a flat range from $500 to $2,000 depending on the number of rooms. This should be included in the price of a down payment. First-time buyers should also consider legal fees when making a budget. Some of them include stamp duty for 99-year lease agreements, conveyancing fees and a caveat registration fee.

You can calculate stamp duty by taking 1% for the first $180,000 of the purchase price, 2% for the next $180,000 and 3% for the next $640,000. If you bought an apartment for $200,000, you should get 4% of the remaining amount. The same calculation applies to prices that fall in between the percentage brackets. You can also use the Inland Revenue Authority of Singapore’s Stamp Duty Calculator to check the estimated price.

Conclusion

As prices of rooms for rent in Singapore continue to increase in some areas, it makes sense for people to buy apartments for themselves. If you still need cash to fulfill a down payment, then call us today to find out how we can offer the best home loan. Our rates are competitive and reasonable, as we are regulated by the Monetary Authority of Singapore.

overspending during the holiday season

5 Simple Tips to Avoid Overspending During the Holiday Season

Most people try to be frugal in Singapore during the holidays, but this can be especially difficult when retailers have so many tempting deals for shoppers! Some people use the excuse of missing out on these special offers to spend—sometimes even more than necessary.

Here are five simple life hacks and expert tips to stay within budget and avoid overspending on your holiday shopping every year:

1. Make A Detailed List About Your Holiday Expenses

A list may seem to be a perennial tip for controlling your finances during the holidays, but it’s also among the most overlooked piece of advice. Don’t just write the items that you plan to buy for your friends and family. You should include the estimated price of each gift, the day and time you plan to buy it, and how you intend to pay for it (e.g. cash or credit card).

By making a list, you can avoid an impulse purchase that’s particularly based on emotions. You also save time and effort from randomly selecting items when you’re browsing at a shopping center or online store.

2. Secret Santa and Other Gift Ideas for Big Families

Do you have a large or extended family? It can be a pain in the neck to plan how you can save money on buying holiday presents for everyone each year. A nifty way of limiting your expenses requires an age limit for family members. You can exclude those who are more than 18 years old from your gift list. If that’s not possible, you can just cap the price for each person like not spending over $30.

You can also suggest a Secret Santa for this year. Each person picks a random name and buys a gift only for that person. It saves time and money for everyone, and you’re sure that nobody will judge you for not getting them anything for Christmas or New Year’s Day.

3. Use Your Credit Card’s Cycle Date to Your Advantage

Remember each of your credit cards’ closing dates and purchase items on the next day of every date. For instance, your card’s billing cycle ends during the 1st of each month, and you purchased an item on the 2nd day. The grace period for your payment due date typically ranges from two to three weeks after the closing date. In this case, let’s say that you need to pay your outstanding balance on the 22nd day of the month.

If you bought something on the 1st day and the bank included it to your bill, you only have 21 days to pay for it. On the other hand, you will have almost two months to pay for your purchase if you did it on the 2nd day. That’s because the item you bought will be added to the next month’s billing cycle and should be paid on the 22nd day of the following month.

You should only do this if you have self-discipline on making your purchases, as any uncontrolled transactions will just rack up unnecessary debt. Most people consider credit cards as an extension of their wallets, which is a huge mistake whether or not you have the available cash to pay for your transactions.

Take advantage of your cards’ cycle dates only when you need more time to repay the balance without interest fees. It’s also practical not to put all your outstanding balances on a single card if you have multiple cards, as this may be too burdensome to pay off a large amount within a short period of time.

 

overspending during the holiday season with Credit card

4. Apply for a Personal Loan Instead of Withdrawing Cash from Credit Cards

Those who must spend on a big-ticket item during the holidays shouldn’t withdraw cash from their credit cards. A personal loan will be the better option because of lower rates. Licensed money lenders in Singapore aren’t allowed to impose interest fees that are higher than 4% every month. The average interest rate for cash advances cost $15 for every withdrawal or 5% to 6% of the amount, whichever is higher.

In addition, banks impose a daily interest rate that continues until you have fully paid the money. An ATM will also charge additional fees if you use a card from a different bank to withdraw money. The usual APR charged daily for cash advances ranges from 24% to almost 30%!

Personal loans are better because you only need to pay in installments for a specific number of months. Lenders may also provide a lower interest rate for those with a good credit score. You should only apply for a personal loan for sudden and unavoidable purchases that are not included in your budget.

5. Do a Price Match Among Different Retailers

Online and physical stores give rewards, discounts or other perks to customers who can find cheaper prices on the same products from a competitor. You will need to spend time and effort to pull this off. Some of the usual retailers that encourage price comparisons include Shopee, Toys ‘R’ Us, Babies ‘R’ Us and COURTs.

These stores try to set prices that are between 5% and 10% lower than their business rivals. If you’re successful in finding a cheaper price from other stores, you may be eligible for a special discount or item.

Conclusion

Being frugal in Singapore requires consistency and dedication. If there’s a compelling reason for you to overspend during the holidays, a personal loan from a licensed money lender will be a good option. Applying for a new loan during the holidays goes against the principles of frugality, so you should only think about borrowing cash when you’ve considered other options. Click here to know more about our loan products and interest rates.

Bugis Credit What You Can Do to Avoid Harassment

What Are the Illegal Debt Collection Practices in Singapore?

Debt collectors in Singapore comply with the Credit Collection Association of Singapore’s code of conduct, but it doesn’t stop some unscrupulous individuals and companies to use coercion. If you applied for a personal loan from a licensed moneylender, harassment should never happen when they try to collect unpaid balances.

Whether or not there are laws governing debt collection, the reality often bears a different outcome for each borrower. Arson is an example of what debt collectors can’t do when you are behind loan payments. Loan sharks have been reported to set fires on HDB flats of the delinquent borrowers. Read on to find out how you can protect yourself or your family from illegal debt collection practices.

Bugis Credit What Debt Collectors Can Do

What Debt Collectors Can Do

You should expect a visit to your office from the debt collector. While that’s embarrassing, it’s within the acceptable practices of collecting money if they don’t use foul language or brute force. They can also call your house and ask for your whereabouts, although they should be calling you within business hours during the day. It’s unethical for them to call you at midnight to collect money.

Debt collectors aren’t restricted from stalking your social media accounts, so you need to be careful about what you post online. If you have photos showing lavish trips and shopping purchases, then your debt collector will be compelled to get what you owe them. Make sure that your profiles don’t give them any reasons to suspect that you’re lying about your finances.

If you signed a written agreement with a licensed money lender in Singapore, you are only obliged to pay them within six years of the agreed-upon repayment date. That doesn’t mean, however, that debt collectors won’t try to chase you for unpaid amounts despite not having a written agreement or six years have already passed. This is common for people who lend money to family or friends.

Take note that Singapore allows individuals to lend money to family or friends even without a licensed. You and anyone else isn’t permitted to lend money to businesses. Debt collectors can also speak with your family or friends about your financial obligations, but they shouldn’t experience harassment during each encounter

What Debt Collectors Can’t Do

What Debt Collectors Can’t Do

You should feel safe at your home despite being bombarded with phone calls about your missed repayments. Arson has been a known problem that makes online or offline harassment seem like a better alternative for some borrowers. In 2016, Yishun North had the highest number of unlicensed moneylending harassment cases. The average number of cases reached 97 in Singapore during the same year.

These figures imply that there are still individuals who consider a personal loan with illegal lending companies. The good news is that loan shark harassment cases have steadily declined in recent years. There were more than 3,800 cases recorded in 2017 compared to 11,000 cases recorded in 2013.

If you’re currently dealing with harassment from anyone, you should know that they can’t form groups of more than five people to try and intimidate you. An example involves bringing 20 people to your home, place of work or business to disrupt your daily life. Call the police to have them arrested for illegal assembly.

The Protection from Harassment Act also ensures that individuals don’t feel distressed with verbal abuse from debt collectors. For instance, they broke the law when they threaten to expose you on social media. You shouldn’t be stalked going to and from your home or workplace as well.

Debt collectors aren’t allowed to pretend to be someone from a government agency or the police. Once you determine that they violated the law, you should report them to authorities and file a Protection Order. You must be able to prove that debt collectors are harassing you. It’s easier to do this if you owe money to companies than family or friends. Not all of us are willing to file a case against members of our inner circles.

Bugis Credit What You Can Do to Avoid Harassment

What You Can Do to Avoid Harassment

The best way to avoid harassment is not borrowing money from loan sharks and unlicensed moneylending companies. It’s easier said than done but doing so will provide you with peace of mind that you won’t be a victim of arson or other violent acts.

You can distinguish a licensed lender through their means of communication. Reputable companies will not contact you to offer a personal loan. All applicants should originate from the consumer. If you receive a text or online message about such offers, then it’s likely that they are unlicensed money lenders. Legitimate lending companies will only accept applications in person or online after submitting the necessary documents and paperwork.

Loan sharks and other illegal lenders typically require you to sign a written agreement. Sometimes, you don’t have to sign a document at all. Licensed lending companies don’t engage in this kind of practice, as they are required to follow the regulations by the Monetary Authority of Singapore. You should visit and review the Ministry of Law’s list of licensed money lenders each time you transact with a company, even if you’re sure that they are licensed. The list may change from time to time.

Conclusion

You should remember that a code of conduct or a set of governing laws won’t stop unlicensed money lenders, loan sharks or even your friends and family to go after you to collect overdue personal loan repayments. You should be capable of recognizing what constitutes an unfair debt collection practice.

The likelihood of harassment is higher when you borrow money from a loan shark, so it’s always best to seek financial assistance from a licensed personal loan provider. Call us today and find out more about services and interest rates.

BEST LICENSED MONEY LENDER IN BUGIS PERSONAL LOAN

How to Get a $100,000 Personal Loan

You can easily find lenders who will be interested to offer you an unsecured personal loan with an amount of $100,000 for as long as you have the income and a good to excellent credit score. When you need that amount of money, it is doubly important for you to research and compare the right lender, loan term, and interest rate.

 

There are certain reasons that most lenders accept as reasonable when you apply for a loan. Most often these reasons also make the loan more worthwhile and beneficial for you. These reasons are the following: for consolidating huge loans, renovate homes, and grow or to start a business.

 

Most often lenders consider home improvement as a less risky reason to approve a loan compared to starting a business. There are many other uses for a large amount of personal loan, but you have to choose a lender that specializes in your particular loan purpose.

 

When you are searching for a loan, there are minute yet important elements that you might miss out on such as the fine print, additional costs, other borrowing options, and longer loan terms.

personal Loan When You Have a Bad Credit

The fine print has the terms and conditions of the loan agreement. You have to ask questions when there’s something that you don’t find agreeable. These are some elements that you may need to ask: privacy policies, prepayment options, penalties, and your rights as a borrower.

 

You may also need to check on the additional costs or fees and charges aside from the interest. Some lenders charge the loan origination costs which are often included in the APR or annual percentage rate. You also have to watch out for penalty fees for late payments. These fees may not be included in the APR and they could be hefty.

 

It can be tempting to choose a loan with a longer repayment term, but it will cost you more in the long run. That’s why you have to choose a loan with the shortest loan term that you find comfortable for you pay off.

Before you apply for a personal loan of any amount, it’s crucial for you to determine your eligibility. Lenders often consider the three Cs to determine borrower’s eligibility: character, capital, and capacity.

 

Character means creditworthiness. This will depend on your credit score and other details on your credit report such as open accounts and payment history.
Capital means your collateral which is required when you get a secured personal loan. Usually, the collateral is valued to make sure that the lender can recoup its losses once you miss any of your payments.

 

Capacity is your ability to repay the loan. For this factor, the lender will look into several personal aspects such as your current job and salary and your debt to income ratio to figure out if you have the ability to repay the loan and handle all other financial obligations.

BEST LICENSED MONEY LENDER IN BUGIS PERSONAL LOAN

There are three major sources of $100,000 personal loans: banks, credit unions, and online lenders.

Online Lenders

These are excellent sources of $100,000 personal loans. You can check on a site like Credible which lists down different online lenders that offer large amounts of personal loans. LightStream, for instance, can provide up to $100,000 while Upgrade and Upstart can offer $50,000 each. When the loan amount you need is smaller, you can check Credible and compare prequalified personal loan rates. You can also check the loan terms. All you have to do is to fill out an online form and this will not have any bearing on your credit score.

Banks and Credit Unions

The majority of financial institutions are not capable of offering loans that amount to $100,000; but if you are looking for a bank that can offer this amount, you can go to Wells Fargo. The bank is known for offering larger amounts than most banks. Citizens and Citi will be able to offer up to $50,000 for a personal loan. The same amount goes for many credit unions.

There are many possible uses to a $100,000 personal loan. The money can be used for a home renovation project, to pay off medical bills especially the emergency ones, and even to enable debt consolidation. All these can be done without the need to put up your home as collateral. Before you make up your mind on a particular loan source, you need to review the following factors: interest rate, repayment terms, monthly payment, and total repayment amount.

Interest Rate

This is one of the most significant factors to consider when looking for a lender. This is the amount of money you have to pay in interest charges per year. It is expressed in percentage. It’s not enough to choose the lender that can give you the lowest rate. However, how long it takes for you to pay off the loan has an impact on the interest payments. You will need another calculation to factor in which is the APR or the annual percentage rate.

Repayment Term

Another factor that affects the loan’s repayment cost is the repayment term or the length of time that you must pay off the loan. The usual term for a personal loan is two to seven years. The longer it takes for you to complete the loan payment, the more interest charges you need to pay.

Monthly Payment

The rule of thumb when it comes to choosing a loan based on the monthly payment is to choose the loan with the shortest repayment term that has a monthly payment that is affordable to you.
When it comes to the relationship between the previously mentioned factors, you have to understand that the shorter the repayment term is, the lower is the interest rate offered by a majority of lenders. Another point to remember is that the longer the repayment term, the lower is your monthly payment.

Total Repayment Cost

When you find the right loan for your particular situation, it’s crucial to check the federal Truth in Lending Act (TILA) disclosure which will be provided to you by the lender. You have to look for the information on the finance charges and total payments.

Bugis Credit Loan Sharks Make You Believe That You Don’t Have Other Options

How Loan Sharks Trick You into Getting a Personal Loan With Them

Licensed moneylenders in Singapore have been a good alternative to banks for personal loans, but many still borrow money from loan sharks despite several horror stories about their illegal ways of collecting payment.

Some of the terrifying experiences recounted by victims include harassment on social media and even setting fire to the borrower’s home! Here are four other reasons why you should never think of borrowing money from loan sharks.

Bugis Credit You May Be Unable to Repay the Debt

1. You May Be Unable to Repay the Debt

Unlicensed moneylending involves sky-high interest rates. Licensed money lenders in Singapore will never offer personal loans with more than 4% in monthly interest rates. On the other hand, loan sharks can charge more than 10%.

A story involving a woman who needed to pay bills even had to pay $400 after missing the first week of payment. The unlicensed moneylender originally lent $250, which is more than a 50% interest rate in just seven days!

While the female victim had an agreement to pay $300 after one month, the loan still carried a 20% interest rate that’s higher than the 4% cap on loans from a licensed moneylender.

The scam usually happens through unsolicited phone calls, but fraudsters have become wise enough to avoid detection by using WhatsApp to victimize people.

Bugis Credit Loan Sharks Make You Believe That You Don’t Have Other Options

2. Loan Sharks Make You Believe That You Don’t Have Other Options

Those who borrow from illegal money lenders in Singapore usually don’t have the necessary paperwork needed by banks or licensed lenders, or they simply need to get the money as fast as possible. Loan sharks capitalize on this by promising clients with personal loans that don’t require documents and can be disbursed immediately.

However, you should be aware of financial assistance programs by the government before thinking about borrowing money from a loan shark. Some banks and legitimate money lenders can now process a loan application and release the approved amount within 24 hours. If you don’t have the documents, a licensed money lender will be your best alternative.

Borrowers with poor credit scores are also inclined to borrow from loan sharks, but licensed lending companies also cater to this group of people.

Bugis Credit Unlicensed Lenders Use All Sorts of Dirty Schemes

3. Unlicensed Lenders Use All Sorts of Dirty Schemes

The scheming process of loan sharks evolves constantly. Watch out for those who ask you to sign up for a phone line and handset plan before approving your loan. These companies engage in this trick to let telephone companies do the work of chasing after you, in case of failure to repay the monthly instalments.

How does this work? The loan shark will ask you to sign a two-year contract with M1, Singtel or another company. Once approved, the lender will give money in exchange for the phone. Let’s say the phone from the contract costs $1,500. The loan shark will give $1,000 and you won’t have to repay them. Your responsibility now involves paying the telephone company.

There are several red flags from this scenario, but the most prominent one is the exchange of money for the phone. Some phone companies provide discounted mobile devices for their plans or even give them to customers for free. In other words, you’re paying money for something that’s not in your hands because you “sold” it to a loan shark.

Unlicensed lenders do this because they don’t want to bother chasing after clients who defaulted on small loans, which usually cost from $1,000 and $3,000. By asking the customer to sign up for a phone plan, they pass on the chore of hunting defaulters to telephone companies.

If you need to borrow $3,000, then the loan shark will ask you to sign a phone deal with a handset that’s worth the same as your desired loan amount.

Another shady tactic involves loans with the promise of buying gift cards. Customers will need to agree to buy a certain number of cards within a specific period.

If you borrowed $1,000 from a loan shark, you will have to agree on buying a $100 gift card each week for two months. The cards can be either common gift cards such as AliPay or those from the loan sharks themselves.

Bugis Credit Loans Build Relationships With Clients

4. Loans Build Relationships With Clients

The Hari-Hari type of lending is just another yet milder version of unscrupulous lending money. The term means “daily” in Malay, which refers to the frequency of collecting payments from borrowers. Loan sharks have become familiar with their clients through this scheme, as they see each other each day to collect the money.

People with low-income jobs are usually the clients of Hari-Hari lenders.

Both parties have a good-natured relationship because of the daily encounters, but loan sharks still won’t think twice of harassing their clients if they default on their loans. Most illegal money lenders who use the Hari-Hari system rarely fail to collect payments, possibly because the amount is small when divided into daily instalments.

The problem, however, lies in the accumulated interest payments that can last for several years. Some borrowers even pay 10 times the principal amount! The idea of being familiar on a personal level with their creditors becomes another problem, as they may feel embarrassed when they miss a single payment.

Imagine owing money to a close friend or family member and being unable to repay the loan. How would you feel about it?

Conclusion

A licensed money lender should be your first option for borrowing money instead of looking for a loan shark.

Singapore may have tough rules to deter unscrupulous lenders, but some companies and individuals still ignore these regulations since they know a lot of people need money urgently.

Don’t let your money problems become bigger by choosing a loan shark. Call us today and find out more about our services.

loan calculation

How Is a Personal Loan Calculated?

Almost every one of us has experienced borrowing money from someone else in order to help pay for unplanned expenses. For some, loans are a natural part of their lives which helps them get through their day to day activities. Today it has become relatively easier for just about anyone to apply for personal loans with banks and other related establishments setting up and integrating their services over the internet. This in turn makes it positive for their clients to borrow money at any given time when the need calls for them to do so. Applying for personal loan is easy; however, a number of individuals often get into trouble during repayment. Let us look at some of the factors that come into play when calculating your personal loan.

Familiarizing Yourself with Loan Terms

Before you start calculating your personal loan, it is a good idea to become more familiar with the terms used by banks to help avoid confusion. This can help you save time as you don’t need to have these terms explained to you.

Amount of loan, for instance, is a pretty straightforward term that is used to describe the total amount that you intend to borrow.

Tenor, on the other hand, is the length of time until the loan is due.

Interest Rate is defined as the amount charged and expressed as a percentage for the use of money by a lender to a borrower.

Estimated Monthly Installment is the fixed payment amount made by a borrower to a lender which is to be paid at a specific date each calendar month.

Estimated Total Payment, just as the name implies, is the total cash out to be made on the loan over the specified period of time. It should be noted that the payment also consists of Loan principal and total Interest.

Last but definitely not the least is the Flat Interest Rate which is a term used as the fixed interest charged to the loan.

Calculating Your Personal Loan

Now that we have loan terms out of the way, we can start factoring how much you will be paying for your loan including the interest. The principal amount is the base amount of what you are looking forward to borrow. Loan term will also have a huge contributing factor on how much you will be paying for your personal loan.
Shorter loan terms are considered to be ideal as they have less interest, but they require higher repayments. Longer loan terms, on the other hand, will help greatly reduce your monthly repayments. However, the interest will often cost more as a result. Finding a good measure of balance with your loan terms will definitely go a long way in helping you find success with your loan endeavors.

Another factor that will add up to your personal loan is with how you plan on repaying them. People who decide to pay weekly will receive less interest, allowing them to save a substantial amount of money as a result. Something that you need to consider with your repayment amount is that not all of it goes to paying off your loan directly since a part of it is paid to your interest first. Borrowers have the option to fully pay for their loans in lump sum at any time which is great for those who are worried about their interest rate.

Personal Loan requirements bugis credit
Make Use of Online Resources

It is good to hear that modern technology has contributed greatly in making a variety of our day to day tasks more seamless and hassle free. Personal loans have benefited from such technology, and this can be seen in the existence of loan calculators. Looking up loan calculators over the internet will yield a huge amount of results in just a couple of seconds. A huge number of banks have setup and integrated their services over the internet which include having their own personal loan calculator. This helps them save a fair amount of time and enjoy convenience as a result.

Don’t Be Afraid to Ask Help

It should be noted that loan calculators will only give you a rough estimate on how much you will be paying for when you decide to borrow money from a bank. Those who want to have a much clearer overview with their personal loan may want to consider getting in touch with somebody from loan assistance to receive help. These individuals will be more than happy to help you with your concerns answering questions and other related enquiries with regard to your loan application. Having them by your side can give you a sense of confidence and relief knowing that readily available help may be provided. Go to homepage to learn more.

Borrow Money Wisely

If you are worried about applying for a personal loan, then you may want to consider the reason why you are getting one. You will need to determine if the reason is valid and worth the time and effort of repayment especially since it will take a fair amount of time to clear your debt. It is also a good idea to set realistic goals with regard to your personal loan, thinking ahead about how you can afford to pay it back in the future. You may also want to consider your budget on all levels, including your yearly, monthly and weekly expenses.

It is important to note that unforeseen circumstances may happen in your life. There may be changes in your life that were not entirely planned such as getting sick or perhaps having kids. All of these factors are important and need to be considered since they will have a huge impact in your capacity to pay for your personal loan.

Regardless of how much money you will be borrowing, it is a good to get in touch with a personal loan assistant as early as possible. Doing so will ensure that you will be able to receive your personal loans in a timely and orderly manner with little to no delay.

Also don’t forget that using a loan calculator all the time can help you avoid debt problems in the future.

personal loan singapore

Personal Loans: When Should You Apply for Them?

There are certain situations and circumstances that will require filing for a personal loan. Some loans are meant for a specific purpose. Examples of these are auto loan for cars, mortgage loan for a new home, and student loan for college tuition.

A personal loan, on the other hand, can be used for any purpose. Some lenders will require you to inform them of the reason or use of the loan, but most of the time they don’t. As long as you have a valid and legal reason, you can qualify for a loan; and you can use the amount for any purpose you have in mind.

You have to be familiar with personal loans before you apply for it. First of all, it does not require collateral. A home loan will have the house as collateral while the auto loan will have the car. These loans are called secured loans. Without the collateral requirement, personal loans are unsecured loans. This means that the interest rate will be higher.

The following are some of the circumstances that call for a personal loan application:

personal loans in singapore

A personal loan may be necessary to refinance a student loan.

A personal loan can provide financial relief in this situation. If your student loan has a high-interest rate of 6.8 percent, depending of course on the type of loan you were granted. It is possible for you to find a personal loan with lower interest rates so you can pay off the outstanding loans faster.

There is a downside to this though. If a personal loan will be used to pay off a portion or the entire student loan, you can no longer deduct your interest payments along with some other benefits that are part of a loan such as a deferment and a forbearance. If the balance is of a large amount, the amount of the personal loan may not suffice.

A personal loan can improve your credit score.

If you have a low credit score, a personal loan can help you augment it in three ways. First is when your credit report shows that all you have are credit card debts, a personal loan can remedy the “account mix” issue. Having diverse loans can be favorable to your credit score.

Another way is that it may lower the credit utilization ratio or the amount of the total credit you are using compared to the credit limit. The lower the total credit amount, the better your credit score. A personal loan will increase the total amount that is available for you to use.

A personal loan may also help you consolidate credit cards.

If you have one or many credit cards that are all maxed out, you can apply for a personal loan for you to consolidate all the charges into just a single monthly payment. This is a beneficial settlement since the loan’s interest rate is lower than the APRs or annual percentage rates on your credit cards.

A personal loan may also be used for home improvement.

Consider a personal loan to finance your home improvement project if this will add value to the home, especially if you have plans of selling it. You will not max out your credit card or pledge your home as an asset as you will with a home equity loan.

The following are more specific conditions for you to get a personal loan:

personal loan SG

Get a personal loan when you want a loan with a fixed interest rate and monthly payment.

A personal loan’s greatest benefit is that it offers a fixed repayment schedule and interest rate. This means that you can agree altogether on a scheduled monthly payment ahead, and there are no surprising larger bills.

Get a personal loan when you have used a personal loan calculator to know your new monthly payment and you are certain that it is affordable.

Being qualified for a personal loan does not necessarily mean that you can afford to pay for it. That’s why it’s important to use a personal loan calculator to figure out what will be your monthly payment based on the amount you intend to borrow and the interest rate that you are qualified for.

You have to check on your budget and regular expenses and try to see if your loan payment will be difficult for you to comply with.

Get a personal loan when you have good credit, for you to qualify for a loan that comes with an attractive rate and beneficial loan terms.

The first thing you have to do is to boost your credit score. You can work on this by making sure that late bills are up to date and that all monthly payments are done on time. Your credit score will be improved when you pay off your debts and credit card balances. Keep in mind that these make up 30 percent of the FICO score.

After listing down all the possible situations that will require you to get a personal loan, it’s also useful to list down all the ridiculous situations that people mistakenly use their personal loans on.

Personal loans are better not used on medical expenses.

The only way for personal loans to make sense as payment for medical expenses is if you cannot find better payment terms from your doctor’s office or through your medical credit card.
Personal loans must not be used for discretionary spending.

A personal loan may be a convenient option, but it is an expensive financing option for unimportant expenses such as grand vacations and highly extravagant weddings. There is no other option but to save for your huge expenses early on. This will help you avoid finance charges altogether.

Personal loans are not good for emergency expenses.

Personal loans are cheaper and less risky than payday loans; however, these still have high-interest rates particularly for those who have bad credit. If you don’t have an emergency fund, you can check online for some payday alternatives.

Lastly, a piece of advice from the financial experts, if you are struggling to stay afloat and keep up with your debts, don’t apply for a personal loan.

For more information regarding personal loan visit Bugis Credit to find out how to get the best rates for personal loans.

personal Loan When You Have a Bad Credit

How to Get a Personal Loan When You Have a Bad Credit

If the personal loan is not to be used for an emergency, the best thing to do is to improve your credit score for you to be avail of the loan without feeling burdened at all. Make sure that you pay on time all your debts. Bring down the balance of your card to at least 30 percent of the credit limit allowed for you. Also applying for a new credit can make your situation worse.

The three mentioned elements make up 75 percent of your credit score: paying on time, reducing the use of credit cards, and not applying for a new credit. Be realistic in your goals and their timeline. It may be quite difficult to raise your credit score by 100 points in only 3 to 6 months.

If you happen to have an emergency and your loan application has been turned down repeatedly because of no credit or your bad credit, you can request to be interviewed by a credit union loan officer for you to convince them that you are credit-worthy.

Once you get a schedule for an interview, make sure that you have all the necessary documents. Lending institutions seek for signs of stability on borrowers. It’s better for you to show them that you lived in the same house or in the same city and worked the same job for several years.

The following documents will prove your credit-worthiness to lenders:

  •       Tax returns and W-2s and 1099 forms from at least the last two years.
  •       List of all your assets such as a home, car, or any property and where you are in paying them all off.
  •       Information about your salary, employment history, and pay stubs
  •       Whether you receive alimony or child support
  •       Bank statements for checking, savings, and cash deposit.
  •       List of unsecured debts like credit card and medical bills.

Not all of these documents will be required by the lenders; but if you have bad credit, anything that will show that you have become more responsible with your money will help you get a loan. You will also be asked questions that may sound negative and offensive to you such as:

  •       Have you had any lawsuits?
  •       Have you ever declared bankruptcy or had a foreclosure judgment?
  •       Do you know your ethnic background?
  •       Do you have any judgment against the items in collection?

Remember that the in-person interview is to convince the lender that you are capable of repayment. Any document that will support this argument especially proof that you paid off loans on assets such as a car or a boat will be helpful to you.

personal loan with poor credit history

The following are some concrete steps to take for you to get a loan despite having bad credit:

1)      Understand that your credit score affects the interest rates.

In general a credit score is the most crucial factor that affects the decision of the lender on what interest rate to give you. Even if many lenders will offer personal loans to people particular those of fair credit, if you have bad credit, expect to pay higher interest rates. That’s why it’s important to check with multiple lenders for you to compare the interest rates and terms. Don’t think that when you are turned down by one lender you will not be able to get a loan. Just keep on searching until you receive a good offer.

2)      Know your most recent credit score.

It’s one thing to know that you have bad credit; it’s another to know how bad it is. FICO, the credit scoring company has five categories of credit scores. They are as follows:

poor: 300-579

fair: 580-669

good: 670-739

very good: 740-799

excellent: 800-850

It’s wise to check one’s credit score before you apply for any loan. You need not have an excellent credit score for you to get a loan, but you will notice the difference in the loan amount you can avail yourself of vis-à-vis your credit status.

3)      Calculate your own debt-to-income ratio.

Some lenders will calculate the borrower’s debt-to-income ratio or the percentage of the monthly income that goes to debt. This will guide their decision whether to give you a loan or not and if ever granted the amount of loan suitable in your condition.

The formula is simple. Just divide all the monthly debt payments by your gross monthly income and you get a ratio or a percentage. Lenders prefer their borrowers to have 35 percent or lower debt-to-income ratio. This includes the loan you are applying for and those that are currently existing.

4)      Consider getting a loan from a credit union.

Credit unions are a huge help when you need a personal loan and you have bad credit. These institutions are more flexible, and their maximum interest rate is at 18 percent.

Credit unions according to the Experian, credit unions have the non-profit status which enables them to accept riskier borrowers that are not normally accepted by banks. They often offer lower fees and interest rates too.

5)      Consider getting a home equity loan.

If your home has equity, make use of the equity. It’s money that is always available and can be used without considering the low credit score. A home equity loan does not consider low credit score a factor. For as long as your home has equity, you can take advantage of the amount.

Home equity loans have fixed interest rates and repayment terms. It is possible for you to borrow money for up to 30 years. The interest can be deductible on your taxes when they are itemized. The money can be used to make important changes to your current home.

This kind of loan is not without drawbacks. First off, your home will be made collateral. That means if you fail to repay the loan, you can end up homeless. There are also some home equity loans that have fees and ones that require you to have a substantial home equity for you to qualify. That makes it highly important to research and compare multiple home equity loan lenders.