Unless you can afford private health insurance, paying for healthcare in Singapore is a bit steep. It gets worse when they wheel you into the emergency room, and you have to shell out a hefty amount out-of-the-pocket.
Fortunately, Singapore’s financial market is now rife with medical loans. These are a special type of instant personal loans that cater to medical emergencies. Whether you need to get a medical procedure done ASAP or your baby is having breathing difficulties, these are the best personal loans to foot your medical bills. The best part is, medical loans cover a wide range of medical needs without needing collateral. Yep. Medical loans are unsecured; hence, you don’t have to worry about a lender repossessing your property if you default. But, wait. The deal is too good, isn’t it? Before you hurriedly sign that loan agreement, there are little-known tips that will help you land the best deal. And in this article, we’ll teach you seven tips for acquiring the best personal loans for medical emergencies.
1Pay Attention To Your Credit Score
When was the last time you obtained your credit report? The thing is, medical loan providers are known to set the bar high in terms of who qualifies for their loans. This means that the higher your credit score, the higher your chances of securing the best personal loans and affordable rates. In Singapore, a credit risk grade of AA reflects prompt repayment and a generally healthier credit lifestyle. Therefore, this gives you higher bargaining power when negotiating loan rates.
Conversely, a lower credit score of, let’s say, 1800 (EE) means you’re highly likely to default. As a result, most lenders will be hesitant to lend you their money. And in case they somehow agree to lend you, they’ll charge you exorbitant interest rates.
The bottom line is that you always make sure your credit score coincides with a lender’s eligibility criteria before applying. Besides saving yourself from rejection, you might also save tons of cash in terms of interest.
2Don’t Ignore the Terms and Conditions in the Loan Agreement
When applying for an emergency medical loan in a hurry, it’s easy to fly over terms and conditions and check the ‘I agree’ box. But are you familiar with what you’re consenting to? What if you agree to have your little finger served on a plate? Just kidding, but you get the point.
As a rule of thumb, always go through the fine print of your application form. Ensure you understand issues such as the personal loan interest rates, the payment window, or hidden charges. For instance, you’ll find that some lenders compensate low-interest rates with nominal yet expensive fees that are vaguely stated in the loan contract. Some of these charges include high-processing fees, foreclosure charges, closing fees, and the likes. To avoid being a victim, go through the forms keenly and ask questions.
Note: Avoid a lender that isn’t transparent with all charges.
3Explore all Lender Options
If you’re considering a medical loan, be ready to do your homework. There are a plethora of instant personal loans in Singapore. These include banks, credit unions, and online lenders. Don’t rush to decide before you explore all your options. If you settle too fast, you might end up settling for less.
For you to get the best personal loans to cover your medical expenses, weigh the benefits of one lender against at least five other lenders. What do they offer differently? While at it, prioritize lenders with impeccable customer service, reasonable repayment plan, and affordable personal loan interest rates.
4Don’t Overestimate or Underestimate your Bills
Before applying for a loan, it’s vital that you understand the hospital’s billing system. How much is being paid by Universal Health care? Does the hospital provide a discount or other financial assistance options? This way, you’ll know how much you need to apply for from a personal loan provider.
5Negotiating for an Extended Repayment Period is a Bad Idea
One thing to note about medical loans is that the interest rates are costlier. This means that the longer you take to pay off your loan, the more interest you’ll end up paying in the long run. So as long as the period stated in the contract is reasonable, stick to it. A shorter loan tenure eases the burden of the loan and saves you money in the long run.
6Uphold Truth in Your Application Form
Lying may sound like an easy way out, but it’s only a sting in the tail. Sure, inflating your current income could stack the odds in your favor, but if busted, you’ll be liable to answer fraud charges. Before submitting your application form, go over your documents to ascertain that everything is accurate. Form employment status, income, or loan purpose: any inaccurate statements will lead to rejection.
7Avoid applying for too many loans at a go
In moments of desperation, you might be tempted to hand out gazillion loan application forms to every potential lender you spot. Please don’t fall for it. Applying to multiple lenders poses a massive threat to your creditworthiness. See, each lender initiates a hard inquiry when they receive your loan application. A hard inquiry is a request to analyze your credit file, and every inquiry reflects on your credit report.
Lenders might interpret multiple hard inquiries as “credit thirst,” a label that will ruin your credit report.
Although they are easily accessible, personal loans can cost you a lot more if you don’t do your due diligence. To get the best deals, it’s therefore advisable that you practise the tips above when shopping for the best personal loan providers.