How To Improve Bad Credit & Get a Personal Loan in Singapore?

Financial struggle

Can you apply for a personal loan for bad credit score? The short answer is no. The reason is simple: banks are risk-averse and borrowing from them with a poor credit score lowers your chances of approval for personal loans. Bad credit scores, however, don’t instantly prohibit people from borrowing money.

You may need to consider applying for a loan with a licensed moneylender in Singapore instead. Several banks may still approve your loan application depending on your credit score and other factors. If you have an above-average annual income, a bank may be willing to overlook your bad credit score in exchange for approving the loan with a higher interest rate. You shouldn’t expect to qualify for the lowest interest personal loan with a score below 600.

Apply for a Loan from Non-Bank Lenders

Licensed moneylenders like GM Creditz Pte. offer personal loans to a customer with poor credit. If you have bad credit, loans from non-bank institutions are easier to get because of their more lenient policies. The payment scheme isn’t complicated because some companies can even approve your application within a day. The approval process for banks isn’t as fast since it could take more than 24 hours.

However, you need to be sure that you have the requirements when applying for bad-credit loans. Licensed money lenders comply with the Monetary Authority of Singapore’s strict rules for money lending practices, so you don’t have to worry about being a victim of personal loan scams. You should avoid transacting with an unlicensed money lender for a personal loan in Singapore, even if you don’t have a bad credit score.

Financial Struggle

Loans for Bad Credit: What Are the Requirements?

A personal loan in Singapore requires several documents whether you are a customer of a bank or licensed money lender. The usual requirements for locals and permanent residents comprise an identity card, proof of residence and SingPass details. If you are renting a house, you need to show a tenancy agreement. Those who recently got a new job should present an employment letter and three months of their payslips if they have just worked for less than six months.

For foreigners with bad credit, a licensed money lender require a passport and work permit to approve a personal loan for foreigners. You need to show documents that prove where you live and work in Singapore, aside from a recent bank statement that shows the salary credits of your employer.

Loan Approved

Which Bank Is the Easiest to Get a Personal Loan?

If you really prefer a bank for a personal loan, bad credit loans from HSBC are among the best options, according to ValueChampion. The bank offers an effective interest rate of 7% across all its loan tenures from one to seven years. The flat rates aren’t too different at 3.7% to 3.8%. All rates and figures are conditional to a $10,000 loan principal and the applicant having an annual income of at least $30,000.

If you prefer to borrow money from your credit cards, then POSB and DBS are some of the best loan options. These banks offer loans to customers with credit card and personal line of credit accounts. The loan approval process, though, isn’t that fast because you need to wait at least two days for approval.

A doller bills in a wallet

Don’t Borrow Too Much

People with bad credit didn’t end up with a poor score overnight. Don’t assume that just because a bank can approve a loan principal worth up $100,000, then it’s a missed opportunity if you borrow only $20,000. Remember that your credit score takes a negative hit each time you take out a loan; the higher the amount, the greater the impact on your credit score.

You can just borrow $10,000 or even below this figure, but keep in mind that banks won’t usually approve a loan worth below $1,000. Once your loan is approved, make sure that you won’t neglect the payment due dates. This will be a great start to repair your poor credit history.

Hand holding credit card clipart

Other Ways to Improve Your Credit Score

Don’t think about canceling your credit cards once you have settled your loan obligations. Most people are unaware that it affects their credit scores. Financial experts advise consumers to spend just 30% of their total credit line. It’s better if you use a lower percentage. Let’s say that you have three credit cards and the total credit line amounts to $60,000. Card A has a limit of $20,000 and Card B’s limit is $30,000, while the remaining limit goes to Card C.

Now, we’ll assume that your total outstanding balance from Card B costs $5,000 and another $10,000 from the two other cards. You decide to pay off all your dues with Card B and then cancel it. This will reduce your total credit line to $30,000, which means your credit utilization reaches more than 30%. If you didn’t cancel Card B, the utilization rate will stay below 20%.

Banks and other lending institutions measure your credit score not only based on your annual income or payment history. Your credit utilization is an important factor as well. Try to keep your utilization rate at least 30% of your total limit. If you really need to cancel some cards, choose to keep the ones that provide the most benefits. You can keep up to three preferably with a high enough limit to serve as a buffer in case you have outstanding balances.


If banks are rejecting your application because of bad credit history, then licensed money lenders like GM Creditz Pte. is your best alternative. Our loan products include debt consolidation that allows you to pay off all existing credit card debt, which lets you focus on loan payments to just one creditor. Debt consolidation also improves your credit score by eliminating multiple loan obligations. Go to homepage and find out more about how you can get approved in as fast as an hour!

About GM Creditz

GM Creditz is a low-cost and flexible loan provider.

Our aim is to give you the money you want, when it’s needed, whether you have a sudden emergency that has set you back financially or if you want a boost to help kick start your future plans. Put simply, we cater for individuals with different financial situations, whether you have a good credit report or one where other lenders are unwilling to offer you a loan, we want to help.

We have built our business on solid principles by offering a fair and transparent service, and, as a reputable lender, we make sure you can afford your repayments. Depending on the amount, we offer unsecured loans so you don’t need to secure an asset like your house or car against the loan. You don’t need a guarantor either as we work hard to provide you with the money you need at a rate you can afford.

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