Borrowing for a Friend
A common quote we frequently hear whenever we question the credit exposure of borrowers:
“Oh this loan is borrowed for my friend..”
“This loan I borrowed for my friend because his income don’t qualify…”
“Don’t worry brother, my friend steady one, sure will pay one…”
Credit exposure refers to debts that is outstanding under your name. If your perception is such that you are immune and indemnified from these liabilities then you are missing the point completely.
Whenever a financial institution does a credit scan on your credit exposure, all the loans and defaults that is reflected under your name will be assumed to be yours and yours only. Regardless of how “steady” your friend is, we will always assume the worse (ie. a default by your friend).
The granting and disbursement of your personal loans will always be based on your credit exposure as well as your affordability to service the installments. That is to say, the higher your liabilities, the lesser the likelihood your application will be approved.
There are many ways to help a friend and borrowing on behalf is definitely not a recommended option. Always help what you can afford and do it without a pinch.
For more information, kindly visit them @ personal loan singapore
They can be reached at 6337 0055 or enquiry@creditexcel.com.sg for further assistance.
By the way, Please grab a copy of CLEO Magazine March 2012 in which I am featured as the second winner of the CLEO next top blogger 
I will post more about it next time so again stay tune
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