How to Get Personal Loan in Singapore With Bad Credit?

Personal Loan in Singapore

Indeed, it is not easy to get a personal loan in Singapore. Especially, if you have bad credit. With bad credit, it will be harder for anyone to get loan approval from the banks. Financial institutions such as banks use credit scores and credit history to measure the financial capability to repay the loan. However, banks are not the only institutions that will help you secure financing.

In Singapore, even if you have a bad credit history, some institutions like licensed moneylenders will help you with a personal loan. They will ask you about your current income and you can already receive your financing within a few days or a week. However, before starting to apply on moneylending, know of the effective tips on how you can apply for a personal loan even with bad credit.

Pay Loans with Higher Interest Rates First

If you have an outstanding loan with a high-interest rate that you have missed paying, then it will be best if you settle them first. You can delay your loans with lower interest rates and focus on those with high-interest rates first. Loans with high-interest rates can balloon into higher figures versus the low-interest rate debts.

Apply for a Smaller Loan Amount

A bad credit score will prevent you from having large personal loans for bad credit from a bank. This is because a poor score will indicate that you are unable to pay your loan payments. As such, if you are having trouble with your personal loan approval, you can try improving your credit history first.

Do this by applying for a smaller personal loan. If you have been granted this loan, see to it that you never miss any payments. Set reminders on your phone or calendar. You can also ask your relative or friend to remind you of the due dates of your loan. Make sure to strive to make each payment in full.

The idea is to show to the lender that you can keep up with the repayment schedule. With this, it will show the banks your ability to pay the loan, which is favorable to them. To build up your credit score, you might need to borrow and pay back a small loan several times. Do this to the point where banks will feel comfortable enough to give you a larger loan.

Try Credit Counseling

Another good place to start working on your bad credit score is to setup an appointment with Credit Counseling Singapore. This non-profit organization will help you get to the main issue of your debts. They will arrange debt negotiation meetings with financial institutions and discuss your loans.

Fix your Debt

The majority of the borrowers with bad credit scores have existing debts. If this is you, you will want to restructure your debts with the use of a Debt Consolidation Plan or a balance transfer. These will allow you to discuss your high-interest debt in detail. With this, your credit card bills will become manageable and have lower-interests.

Try Other Financial Institutions

Again, you might not be able to have a loan at the banks if you have a poor credit score. However, there are options that you can try.

First, you can try applying for personal loans for bad credit at online lenders. You might qualify for an online personal loan if your finances meet their criteria. Indeed, you can finish the application fast and receive the funds immediately. However, the fees and interest rates can be slightly higher than what you will get in the bank and credit union. As such, make sure that you meet your lender’s requirements before you submit your applications. Check for lenders that will allow you to prequalify without affecting your credit score so you will not suffer for applying.

Next, you can also apply on short-term loans including installment loans, payday loans, cash advances, and auto loans. These are meant to take the pressure when you need money during emergencies. You can repay this within a few weeks or months. You can receive higher interest rates with short-term loans. If you are unable to make your payment on time, they will also charge you with higher fees.


In sum, you don’t need to panic if you find yourself with a bad credit score and you need funds for a specific purpose. With the tips outlined above, you can still have access to the funds that you need. However, you have to be careful in the solution that you select. This is because you still need to do your part in paying the debts at the moneylender or other institutions. Make sure that you don’t waste these chances. If you fail to fulfill your responsibilities, borrowing money on these institutions will become more difficult in the future.

Discover more about instant personal loan here.