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Is it worth taking out a payday loan?

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Table of Contents

Table of Contents

Payday loans are becoming an increasingly popular choice for Singaporeans to cover unforeseen costs and tide them till payday. Synergy Credit offers a simple, fuss-free payday loan in Singapore, and allows you to receive your money on the spot should you meet the criteria and have the necessary documents ready.

Thinking to apply a payday loan? Consider these points before making a decision.

What is a payday loan?

Payday loans are a form of short-term borrowing designed to be repaid within the month, or when the borrower’s salary is credited in next. The loans can either be a small or large sum of cash for financial emergencies such as medical bills or if you need urgent access to cash and want to avoid long approval times when getting a bank loan.

What are the advantages of a payday loan?

The biggest advantage of a payday loan is that it is accessible and convenient. You can apply a payday loan in Singapore anytime and anywhere, and have the money debited directly into the borrower’s bank account without the hassles of paperwork and long waiting time at the banks. Depending on the moneylenders, you can borrow up to 6 times your monthly salary. The money can help deal with bills and other unexpected costs that may come up if your salary can’t cover them. The loan is then repaid in the following weeks rather than months or years, with interest. The payday loan interest rates differ from one moneylender to another.

One other advantage is that you can apply a payday loan in Singapore even if you have a bad credit history or have a low credit score. For payday loans, no credit check is required which means you can get cash quickly.

What are the disadvantages of a payday loan?

The disadvantage of a payday loan is that it may be rather expensive to pay off. Some moneylenders may charge high payday loan interest rates, and borrowers may end up paying back more than they would on other types of loans. For some, short-term borrowing may impact finances from one month to the next. Depending on the moneylender, some may offer a loan period of up to 3 months repayment while others may require a payment in full the next time your salary is credited. These time constraints can be difficult on borrowers as they will need to plan other monthly expenses around loan repayment, and it can be rather tricky.

Before deciding to take up any type of loan, you will need to make sure you can afford to make the payday loan repayment in full when it’s due. Some moneylenders charge a hefty late fee, and you sure don’t want to have to deal with the additional expenses too. First, review your bills, and consider talking to your landlord, utility company, your lender, and whoever you owe money to and see if they’ll be willing to work with you. It doesn’t always work, but sometimes it does if you try.

Applying for a payday loan

Make sure you only borrow what you need. The maximum sum moneylenders can offer when applying for a payday loan in Singapore may seem appealing, but if you don’t need it, then it’s not worth the high repayments. The less loan you take up, the less you pay.

Choose your lender carefully. When applying for a payday loan in Singapore, make sure that the moneylender is registered under the Ministry of Law. Some money lenders charge high payday loan interest rates or offer you a limited period to pay off your loans. Do your research, and make sure you find the one that suits your needs and your ability to pay off the loan.

So, is it worth taking out a payday loan?

A payday loan is one of the best solutions to help tide you through any unexpected financial crisis. Synergy Credit offers low and simple payday loan interest rates starting from just 2.27% per month and a flexible repayment term of up to 12 months. Our payday loans also do not require any collateral which makes them easily accessible to individuals in need of urgent financial assistance. It takes less than 5 minutes to fill out the online application form and you can expect to hear back from our loan officers within the day. If you are still in doubt about applying for a payday loan in Singapore, chat with our friendly consultants to learn more about our offers.

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