You never know when the rainy days will come, no matter how prepared you are, there are just some circumstances that push you to the edge, which is why loans always come in handy in tough situations.
For financially responsible people, using credit cards for daily use, or financing a car using secured loans, or taking out a mortgage loan to buy a home, it is very practical especially for people who cannot afford to buy it with cash.
The unsecured and secured personal loans have become a very popular choice for many borrowers nowadays. In fact, it already outgrew credit cards, auto loan, mortgage balances, and student loans according to financial experts.
If you are planning to get a personal loan, here are some of its best benefits that you can enjoy according to the best personal loan licensed moneylender Singapore has.
- Higher credit than a credit card– Credit card has a certain credit limit for you to purchase or use which is usually lower than a personal loan which identifies the credit limit of the borrower based on the debt-to-income ratio, credit score, and also the payment patterns that the borrower has to follow.
- Lower interest rate– Usually, the personal loan interest rate is lower than a credit card and other forms of loans which can be compared for borrowers.
- No collateral required– A personal loan is an unsecured loan which does not require the borrower to put collateral, however, defaulting the loan intentionally have severe consequences, but it will not cost you your car, your house or any valuable assets.