A payday loan is a short-term loan designed to help you out in emergencies and unforeseen situations. As its name suggests, payday loans are designed to be repaid once you have received your salary from your workplace; in essence, a form of an advance on your salary. 

They are an extremely useful tool when it comes to regaining financial stability and if used appropriately, can help you improve your credit score. If you are considering legal loans, then you should look for the best payday loan in Singapore.

What Exactly Is a “Good” Payday Loan in Singapore?

It is crucial that you understand the purpose of a payday loan and that you should only consider legal loans because unauthorized money lenders can result in harassment and stress for you and your family. When determining what a “good” payday loan is, you should consider the following factors:

1. Calculate how much you need

The first stage of the process is naturally to determine how much you will need for the expense. If it is for a car repair, for example, this should be quite straightforward. However, estimating for items such as medical bills can be more complicated, given that you won’t know the full cost until later. However, you should try your best to make an accurate estimate by asking around and doing your research.

2. Calculate how much you need to borrow

You may not need to borrow the total amount, and where possible, you should look to borrow the minimum amount that you can afford.

3. Calculate the repayments

Calculating the repayment is perhaps the most critical factor as you need to be sure that you can meet the repayments and that they will fit within your current monthly budget.

4. How long will it take to repay the full amount?

With a payday loan, you should look to repay the sum as soon as possible because of the levels of interest that are charged. However, once again, it is crucial to select a repayment plan that is affordable so that it falls within your monthly budget.

Payday Loan Terminology

If you are looking to take out a Payday loan, you will, of course, be looking for the best option for you. There are many providers available, so you will need to consider the following factors when making your final choice:

  • Interest Rate – one of your primary objectives is to find the provider that charges the lowest rates of interest, especially if it will take a few months to repay. As a guide, you shouldn’t be looking at interest rates of more than 4% per month.
  • Processing Fee – while some providers may charge a slightly lower rate of interest, if you are looking to repay the loan on your next payday, the processing fee may be more relevant.
  • Transparency – unfortunately, some providers are less transparent with the information that they provide than others, and some unexpected charges could hit you. Always use a reputable company such as Fast Money who are 100% transparent with their paperwork.

Finding The Best Payday Loans in Singapore

At Fast Money, we offer entirely transparent, affordable payday loans to suit your short-term needs. If you would like more information about the best payday loans in Singapore or other legal loans, please contact us for more details about how our professional and experienced team can assist you with financing options.