Forum
Last updated: 

Would getting a loan to pay delinquent accounts raise my credit score?

I currently have a low credit score and I currently have delinquent accounts on my credit card. I was thinking of getting a oan to pay for my delinquent accounts and increase my credit score from 560 to at least 650, however I am not sure if that is such a good idea or if it would really increase my credit score.

User comments

  • user image

    No Name

    It would be a bad idea because you might not be able to repay your debt if you get a loan to repay old debts and it might put you in a worse situation. A better idea is to get a couple of secured accounts to repay your debt. This way, you would be able to repay your debt and establish a credit history.

    2020.03.24 15:44

Please leave your knowledge and opinion!

Related Forums

Contract and agreements of owning a credit card

How do I fix the errors in my newly applied credit card?

My friend has a lot of debts and now being collected by debt collectors

How to get a new credit card and shut down the old one?

What is the safest bank to apply for a Credit Card?

Can I use my credit card for my plastic surgery?

Related Reviews

A no-no for individuals seeking the cheapest car loan

This car loan is a no-no for individuals seeking the cheapest car loan or borrowers seeking to refinance their existing car loan as interest rates of 2.78% and 2.98% don’t come cheap. Irrespective, UOB could be a good backup source of car financing for individuals that are not approved for loans from other banks. Additionally, the bank is unique because it offers flexible car loan repayment schemes and Certificate of Entitlement (COE) loans for used cars.

UOB Car Loan / United Overseas Bank

Apply for a loan in just 3 minutes

What makes Auto Credit Express unique is that they have created one of the largest networks of auto dealers that specialize in financing auto loans for different types of credit profiles. You can get an auto loan for a new or used car by getting funding within a few days by applying for a loan in 3 minutes and enjoy phone support is fast and friendly

U Credit Car Loan / U Credit

Islamic auto financing

Maybank charges a much higher interest rate of 3.25% for its car loans than other lenders in Singapore, making it a less affordable option however, borrowers that are unable to obtain a car loan from other banks may want to keep Maybank in mind as a an alternative to other lenders. It is also worth noting that Maybank offers Islamic auto financing, which may be of interest to prospective borrowers.

Maybank Car Loans Singapore / Maybank Singapore

This may be the cheapest car loan refinancing option in Singapore

This may be the cheapest car loan refinancing option in Singapore as the bank allows borrowers to refinance their existing car loans for a very competitive rate of 2.08%, which is much cheaper than most rates for new loans. While the bank also offers loans for the purchase of new and used vehicles, these rates of 2.78% and 2.98% are not the cheapest available. If you are approved to refinance your existing car loan from another bank, you may be able to save thousands of dollars by switching to OCBC due to its refinance rate of 2.08%, which is significantly cheaper than those of most car loans offered by lenders in Singapore.

OCBC Car Financing / Oversea-Chinese Banking Corporation

Car loan calculator that allows for the calculation of monthly payments

The Standard Chartered car loan calculator allows for the calculation of monthly payments you’ll need to make if you take up a car loan. Simply indicate the car type, enter the required loan amount, loan term and click “Calculate”. You should remember to always consider if you’ll be financially comfortable to meet up payment for the projected monthly instalments while still meeting your basic needs before committing to a car purchase.

Standard Chartered Auto Financing / Standard Chartered Bank Singapore

Lowest rates for new and used car loans in Singapore

DBS charges interest rate of 2.28% for its car loans to individuals that apply online and that is the lowest rate offered for both new and used car loans in Singapore. In my opinion this makes DBS the most affordable option for those that require financing in order to purchase a vehicle. It is also worth noting that DBS is currently offering an even lower rate for the purchase of used cars (1.99% p.a.) in a promotion.

DBS Car Loan / DBS Bank