Be prudent while dealing with financial institutions

Posted onCategoriesLoan

When you want to take out a loan, including a consumer credit to finance a purchase or a project, there are several solutions available for you. Many banks or lending agencies offer credit offers. But some organizations do so without having the right and proper accreditations. Credit scams are multiplying, and there are many proposals in the internet that are often look very attractive that are very prominent on dedicated websites, blogs, and forums and even on social networks.

In Singapore, it is advisable that you are aware of what is the standard licensed money lender singapore interest rate so that they would not subscribe to lenders who are offering above the standard interest rate. When the user has subscribed a credit on these malicious sites, he is invited to send a sum of money to cover expenses of file. Once the money is sent, the victim no longer receives news from the organization and never reviews his money.

Do not rush and compare

Before choosing your lender, it is necessary to analyze your financial situation and your needs, and then compare the different offers. The first step is to take stock of your financial situation to assess the amount to borrow and your repayment capabilities. After making a first selection of establishments offering offers tailored to your situation you can choose the most interesting. You will analyze different elements like

  • the interest rate of the credit
  • the total cost of credit
  • The cost of other related services (account maintenance fees, premiums, contributions, etc.)
  • the cost of a possible borrower insurance

Choose the rightlicensed lender

Choosing the right lender is important, but it’s also important to choose a loan that suits your needs. With regard to consumption credits, several solutions are proposed. In order to properly choose your credit it is necessary to calculate the costs of such a commitment over the long term by calculating the debt ratio which should not exceed 33% of your monthly income. One of the most difficult decisions you will make when looking for a mortgage will be the type of lender to choose. The reason is that the market is full of many lenders who are willing to accept your loan application. However, you must remember that you must be careful when determining which lender to accept. This is because you are going to pay your mortgage for many years, which means that you have to make sure you find the best mortgage lender. Working with a mortgage broker offers you several advantages. For example, the broker can save you valuable time by doing much of the work needed to find lenders. However, you must remember that there are some disadvantages. For example, brokers earn commissions by arranging transactions between the new owner and the lender. This means that you can end up with the wrong broker who matches you with a lender who gives him the biggest profit to the detriment of your needs.