How to get a Car Loan With a Poor Credit Score in Singapore
Written byYannie Woon
Updated on: December 7, 2022
Please note that the content of this article is based solely on the opinions of the author. It has not been reviewed, commissioned, or otherwise endorsed by any of our network partners.
A car loan is a type of financing that allows you to purchase a vehicle by borrowing money from a bank or financial institution.
In Singapore, you can choose from a few different types of car loans available, which each come with their own eligibility requirements. However, most car loans require you to have a good credit score.
If you have a poor credit score, it may seem like getting a car loan is impossible. But don’t worry. There are still options available to you.
Keep reading to learn more about how to get a car loan with a poor credit score in Singapore.
Table of Contents
Types Of Car Loans In Singapore
There are two main types of car loans available in Singapore: dealer financing, and bank financing.
Dealer financing is when you borrow money from the dealership where you are purchasing your car. Bank financing is when you take out a loan from a bank or other financial institution.
Each type of loan has its own advantages and disadvantages, so do your research before choosing one.
Eligibility Requirements For Car Loans In Singapore
To be eligible for most car loans in Singapore, you must be at least 21 years old and have an annual income of at least $30,000.
You will also need to be a Singaporean or permanent resident, and have a good credit score. If you have bad credit, some lenders may require you to provide collateral such as property or another asset in order to secure the loan.
How To Apply For A Car Loan In Singapore
The application process for a car loan in Singapore varies depending on the type of loan you’re applying for.
For dealer financing and bank financing, you can apply online or in person at the dealership or bank branch.
Once your application is approved, you’ll receive the funds within one to two weeks and can use them to purchase your dream car.
Credit Score Needed For Car Loan Approval
As mentioned earlier, one common requirement for all car loans in Singapore is a good credit score. Your credit score is a numerical representation of your creditworthiness and is used by lenders to assess your risk level before approving your loan application.
In general, the higher your credit score, the lower the interest rate on your loan will be.
However, if you have bad credit, there are still some lenders who may be willing to work with you if you’re willing to pay a higher interest rate or provide collateral.
If you’re looking to take out a car loan but don’t have perfect credit, don’t lose hope. There are still options available to you.
Talk to your banker to find out more about how you can get the financing you need to purchase your dream car.
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