Chinatown is located in the heart of the city surrounded by its rich cultural and historic places. It is home to several Hindu and Chinese temples, old shophouses, colonial and heritage buildings. Food lovers must certainly visit this place as there are endless dining options available around Chinatown area. If you are planning a trip to Chinatown, make sure that you have sufficient funds. Nevertheless, if you run out of cash, do consider taking up either a payday loan or personal loan from any Chinatown money lender. One good option for a top money lender in Chinatown would be Soon Seng Credit which is located at People’s Park Complex (mere 5 minutes walk from Chinatown MRT).
As the name suggests, this type of loan provides you with sufficient money that you need until you receive your upcoming paycheck. It is often called check loans or cash advances as it’s a way of getting an advance on your next paycheck. Most authorised money lenders issue this short term loan which has a quick turnaround period that comes with a high interest rate and a short repayment period (days or weeks depending on your next pay day). It is the fastest way to have access to immediate funds as moneylenders will only ask for proof of income to ensure that you have incoming funds to repay their loan on your next payday. The loan amount is not huge as it is pegged to your income level.
Advantages of Payday Loan
It’s quick and easy to obtain as you only need to show proof of income and there is no need to check your credit score unlike a personal loan. The funds are disbursed immediately to you which is good in case you need immediate funds. It’s also the best option if you have bad credit history with financial institutions.
Disadvantages of Payday Loan
Since it’s easy to access these funds, they come with a heavy price. Their biggest drawback is the exorbitant interest rates charged by private money lenders. If you fail to make the repayment on your next payday, the outstanding amount will quickly snowball to a huge debt. This can create chaos in your personal life down the road.
If you are surviving based on your monthly pay checks, you might not be able to afford a huge chunk of your pay going towards the repayment of your loan. You will most probably end up taking another payday loan to pay to repay the current loan. A lot of people will get trapped in this borrowing cycle – one loan after another.
Unlike payday loans, personal loans offer a higher amount with low interest rates and a longer repayment period. It can be both secured or unsecured loans and the funds can be utilised for almost anything.
Advantages of Personal Loans
The loan repayments can be made over a longer period with smaller monthly repayments (as the interest rates are lower) and hence it does not leave a huge hole in your pocket unlike payday loans (where you hand over a huge chunk from your paycheck).
You are also able to loan a bigger amount as compared to a payday loan. The interest rates for a personal loan are low as compared to a payday loan, which makes it a better choice unless you really need cash urgently and immediately before your next payday.
In conclusion, there are numerous options available in the market for people who need money instantly. First choice should always be a personal loan. However personal loans are harder to obtain as the lender will do a background check on your credit history and monthly income before issuing the loan which can take a day or two. The monthly repayments are also lower compared to payday loans as their interest rates are lower in the long run. You are able to loan a higher amount with a personal loan as compared to payday loans. Lastly, payday loans should only be taken as a last resort when all other doors are closed.
Call Soon Seng Credit now if you need a reliable Chinatown money lender, or visit them for a personal discussion for all your loan needs today. We are one of the top money lenders in Chinatown that offers low interest rates and flexible repayment schemes catered for all your personal and financial needs.