Much like questionable multimedia files you store on your hard drive, some things can’t be erased no matter how hard you try to delete it. They leave behind a trail that can be dredged up. This goes for your credit habits as well; in this case, deletion would come in the form of eliminating debt fast, so you can improve your credit rating. But it doesn’t work this way. In your desperate application for personal loans –be it to tide over a difficult period or to finance a medical emergency—banks have a record of how you have been (mis)handling your credit lines.

What if you have a bad credit history and yet need to get a bank loan? There is still a sliver of hope even if the only option you thought you have goes poof. The following ways may very well reverse your personal loans fate and get you the emergency cash you need.                                                                         

Apply for the loan - but not as yourself

Don’t get us wrong, we’re not asking you to pull off an identity theft. What we are suggesting is for you to enlist the help of someone who knows and trusts you enough to apply for the loan on your behalf. When you used to apply for loans in the past, you would have to list a guarantor. Now, it is like getting your guarantor to do the borrowing directly. Similarly, you would also be putting said person’s credit rating at risk, so be doubly responsible for your personal loans like you own it. Heck – it is yours, to begin with!

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Consider alternative to banks

If you are in dire straits, negotiating for a loan with banks may feel like writing with a blunt pencil – pointless. Large financial institutions as such have sets of protocols and stringent practices to uphold, so no means no. Instead of kicking up a fuss at the bank or giving up altogether, perhaps the solution is as simple as circling protocols.

Notice we said banks are large financial institutions, not sole. There are other avenues that may give you that second chance like a financial yellow ribbon. Take pawnshops, for instance; you could do a throwback to the pre-90’s and un-hoard your luxury goods for a loan. If you need a longer time horizon for repayment and don’t mind losing possession of your ‘assets’, get with the times and Carousell them to eager buyers. However, in those cases, you don’t have as much control.

For an option that is on par with banks in terms of fast approvals and high loan ceilings, consider shopping around for licensed moneylenders in spite of people’s preconceived notions. They may be more flexible in accommodating your requirements. Moreover, since the new effects kicked in last year, licensed moneylenders can no longer overcharge interest rates to borrowers. It is revised from a high of 20% per annum to 4% monthly.   

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What is the purpose of the personal loan?

Facing rejection on your loan application is not the end of the world. It is merely the end of one disappointing, miserable attempt. While there are numerous alternatives to banks, there are also alternatives to the loan itself. Once you have outlined clearly what you need the personal loan for, Plan B can also become clearer.

For example, if you need the loan for startup purposes, or to kick-start the launch of a groundbreaking personal project, it is time to discover the wonders of crowdfunding, peer-to-peer lending schemes and microloans from SPRING Singapore.

Show them the money proof

It could be you have been back in the black, but the bank still put the stamp of rejection on your loan application because that bad financial decision you made years ago left a permanent stain on your credit report (let this be a lesson!). After all, nobody likes the feeling of enduring risks (read: you) despite the prospect of profitable returns.

Now, there are a good number of banks in Singapore - both local and foreign - for you to turn to in the event your number one choice gives you the ‘talk to the hand’ treatment. It may still be possible to negotiate with the mortgage officer. Before you head down to make your case, arm yourself with documents such as bank statements and the most recent credit report to show them you have been diligent in debt servicing.   


Have a look at the lineup of personal loan providers, compare and apply online with GoBear Singapore. Click this website

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GoBear team

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