Ways One Can Access Quick Cash by Using Credit Card in Singapore

Sudden cash requirements might surface anytime, and then you might find yourself in a fix, where your immediate requirements are not being helped by your cash crunch. Most of us don’t think about it much till the time dawns.

Credit cards could help your imminent cash shortage. Moreover, we rarely apply for personal loans till we are in urgent need. Singapore offers a wide range of financial services that can meet the immediate cash shortage. However, most of these approaches come at a price, charged in the form of interest rates. Through this article, we’ll try to figure out the ways how the need for immediate cash shortage can be addressed.

Quick cash through credit card cash advance

This is probably the easiest manner of resolving your imminent cash crunch. All you have to do is hold on a credit card, and it entitles you to withdraw cash from any affiliated ATM. Credit card generally comes with a cash advance limit, which is always lower than the credit limit of your card. You must be careful as to withdraw within the cash advance limit. Needless to say, the cash you withdraw will be directly charged on your credit limit.

However, this approach entails disadvantages of its own. This facility can be only used by cardholders with a strong credit standing. Basically, your credit history must reflect clearance of monthly bills on time. They usually come with high interest rates, ranging from 28% to 29.9% p.a., and they are charged from the day you have withdrawn the amount. Furthermore, this approach involves interest at compounding rates.

Addressing cash crunch through line of credit

This approach involves going to the bank and asking for a "line of credit". Banks will authenticate the required documents to establish your creditworthiness, which might take couple of days before it gets approval. Upon validation, banks will credit your account with the amount you need and provide you with an ATM card. You can simply go to the ATM and withdraw the cash you require.

However, this approach also involves intricacies of its own. A person can withdraw any amount from the credit, however, an annual fee is tied to it, whether the money is used or not. Moreover, similar to cash advance through credit cards, for credit line one needs to show a good credit standing. At times, banks even ask for collateral.

However, cash access doesn’t come instantly, as you need to apply for it and wait for couple of days.

Meeting needs through instant cash loan

Several loan companies in Singapore provide short-term loans, which can be paid back in a weekly or monthly basis. Registered moneylenders also offer personal loans, which is a much faster way compared to the loan process dictated by the banks. Furthermore, you would find moneylenders in Singapore who process loans online. This is the swiftest process as it involves a timespan, somewhere between 30 minutes and 24 hours.

However, you need to exercise caution while selecting a moneylender. By checking the Registry of Moneylenders in the official website of Ministry of Law, you can assure if your moneylender is a registered one. Also, you must stay wary of loan sharks who could mince every piece of your money.

Secured overdraft addresses immediate cash requirements

This approach entails you pledging an asset with your bank, and bank will provide you with an overdraft amount that corresponds to the value of the asset. You can withdraw the amount from any ATM, or through cheque, or internet/mobile banking, following the approval of your overdraft. The interest rates are lower in this case, as it is a secured loan.

What approach should you take?

Ideally, we would suggest you to consider all the benefits and limitations of each approach, before taking one. Also, it is absolutely important that you read all the terms and conditions before you go ahead.

Our best suggestion would be to apply for personal loan in advance, as you rule out the possibility of overspending, which usually comes as a virtue of holding on a credit card. Also, credit line and credit card cash advance need you to show good credit standing, which might not be the case, every time.

Sebastian Taylor is a young and dynamic digital marketing professional with years of experience in content writing he is currently working with in a startup Fin-tech head quarters in Singapore branch.