Have you ever experienced being in a financial dead-end?
When you thought that your salary had been well budgeted until the next payday, a need pops out, and you are suddenly desperate to get your hands on an instant loan.
You apply for a personal loan, thinking that this is your only salvation, only to find out that you have been declined, and one of the possible reasons is your adverse credit report.
Top 8 Reasons to Get an Online Loan
If you have a car, you must already know that you need to have it regularly checked and well maintained. It may cause a few hundred to a couple of thousands of pesos to have an oil change or tire change, but you will be spending much more if you neglect these responsibilities.
Imagine the cause of overhauling, buying a new battery, and grueling days of inconvenience in case your car decided to have a major breakdown suddenly. You would be lucky if it won’t stop in the middle of the main road as towing can even cost you more.
Aside from vehicle breakdowns, do not forget to renew your vehicle’s registration with LTO. Late renewal will also be fined.
Loan Money to a Relative or Friend
Filipinos are emotional. Most of them can’t say “NO” when a family member, a relative, or a friend knocks at their door and plead for financial help. Though you may feel annoyed, you have to admit that you will feel guilty if you say “no” to your aging parents, younger siblings, or BFF holding your “inaanak.”
And if you have nothing yourself, they even ask you to borrow money in their stead since you seem to have more options than them. Imagine the frustration when they don’t pay on time, but your loan is already due—Ikaw ang naipit.
Pay Utility Bills
Either you forgot you have a bill coming, or you thought that your accounts will be the same as ever, but it turned out to have increased. You have already made a budget, but it turned insufficient. You have to settle your bill, or else your electricity or water will be cut off.
Not only will you be living with discomfort, but your neighbors will also be gossiping about your poor situation. And if you have a baby at home, a loan will truly help in this situation.
Most personal loans are actually spent on food. It is necessary you can’t just pass up, especially if you have small children. Filipinos usually borrow money from neighbors or get credits in sari-sari stores.
Some regularly employed individuals also come to this desperate point a few days before the next payday. This is possibly due to a lack of budgeting skills or weak resolution against shopping temptations.
You might be eyeing an item for a few months now, and then suddenly, on the time when you have just paid your bills and your sibling’s tuition fee, it went on sale for a limited time only. You can’t pass up the rare chance, so you got a quick cash loan to make the purchase.
To Pay a Debt
There are times when you have to get a loan to settle existing debts to prevent them from accumulating high penalties. There is nothing wrong with debt consolidation. However, choose the right online lender.
There is nothing wrong with debt consolidation. However, choose the right online lender.
To Avoid Borrowing Money from Friends and Family
Some Pinoys would instead get a loan from a private lender than swallowing their pride and ask for help from family and friends, especially if the reason for needing cash is not an emergency.
Sudden Need to Travel
There are unfortunate times when a close relative or an immediate family member suddenly passes away. Filipinos have a tradition of going home to their province to pay their last respects. If they have no savings, they opt to borrow from lenders, and usually, online lenders have the fastest loan processing.
How to get a fast loan approval without a credit check?
Though there are online loan lenders who still approve loans for those who have bad credit reports, there are still important things to avoid rejection.
A Duly Filled-Up Application Form
Online loans have application forms on their websites to fill in your personal and financial details. You should ensure that you have accurately answered every needed detail for your loan to push through. Some online lenders may have more than one page of an application form. Make sure that you can finish everything.
Submit or Upload Complete Requirements
Since you are borrowing from an online money lender, you are expected to upload your needed documents. Make sure you apply to a legal lender as culprits are posing as online lenders to get valuable financial information and use it for fraudulent activities. Most lenders will not process your application if you lack even a single required document.
Use of Personal Loan Calculator
Online money lenders put up their loan calculators to help borrowers see how much they can realistically borrow based on their current financial status. Needless to say, do not borrow the amount you can’t pay at ease.
Moneylenders will know how much you can borrow based on your income and past credits. You may get quickly approved if you apply for a loan amount you can use your capability to pay.
Stick To The Adage: Honesty Is The Best Policy
Never fabricate any detail. One way or another, the online lenders will find out the truth. Their verifying personnel is highly trained to spot any inconsistencies with your application form and submitted documents.
Never fabricate any detail. One way or another the online lenders will find out the truth.
If they found out that you lied about specific information, you will be automatically declined and added to a watch list.
Give Heads Up To Your Personal References
Since the online lenders do not send staff to your place to do an onsite credit check or require you to visit their offices personally, you have to provide a couple of character references. You and your contacts will be asked a series of questions necessary to know your personal character.
Remember that the lender does not know you personally. The only way to know your behavior and personality is to talk with your character reference. Tell them that a credit investigator will give them a call regarding your online loan. Some online lenders experience a hard time processing loans if the character references do not answer the calls.
Be Politely Insistent
It is okay to be insistent. But be sure to be polite. Truth be told, you as a borrower has the responsibility to prove your credibility as a responsible borrower. Being too insistent (almost in a rude manner) makes it seem that you are desperate for cash and too emotional to make a sound financial decision.
It is fine to be insistent, however, be sure to be polite.
How to Find The Best Personal Loan Lenders
Each lender has a different list of eligibility for utang or credit. Check it on the lender’s website to see if you are eligible. It will be a complete waste of time if you apply for a loan and it turned out that you are not even qualified.
Check the company profile by looking around its website. Does the website look professional and well-thought off, or does it look poorly kept? Check if the website bears a Securities and Exchange Commission (SEC) registration number. If you have time, you can call SEC and verify the registration.
Use an online loan calculator to see the realistic amount of loan you can borrow and the repayments you have to pay according to your chosen term. Take time to reflect on how much you really have to borrow and how much you can repay without sacrificing your basic needs.
Responsible online lenders help their borrowers make an informed decision through their loan calculators.
Though online lenders usually offer short-term loans, take time to check other loan tenure options that can best fit your needs and financial status. Remember that just like banks, online lenders charge late payment fees and some lenders charge early repayment penalties. Choose the right term with the help of the loan calculator.
Reviews in social media
Filipinos are now very active on various social media platforms. They enjoy their freedom of expression, and this is why it pays to visit the lender’s social media accounts. You can read previous clients’ experiences to know how they treat the borrowers and how professionally they handle the applications.
Take note of their “start” ratings too. Many satisfied clients rate the company with stars on social media, but they do not leave a comment. Most declined clients tend to voice out their frustrations. This is typical consumer behavior, so you need to analyze the reviews well.
Online lenders charge other fees aside from interest rates, do not hesitate to ask them about these fees. Online money lenders put their contact details on their websites. Feel free to call them up for clarification.
RELATED: How to Distinguish a Responsible Lender in the Philippines
How to Spot a Loan Shark
Upfront processing fees
Legit online lenders process and approve your loans without asking for a processing fee. You are charged with the processing fee during disbursement, and usually, it is either deducted from your principal loan or added to your repayments together with interest. Never trust a lender who asks for a fee before processing your loan.
Never trust a lender who asks a fee before processing your loan.
Too easy verification process
Online verifiers usually ask a lot of questions during the verification process. The process which is too easy is too good to be true.
No location information
Though online lenders do not require the borrowers to come down to their office personally, they do have a physical office and an address you can find on their website. You can use Google Maps to confirm their location.
You are pressured to decide immediately.
It would be best if you were not pressured to decide when getting a loan. Expect to receive options that are well explained.
Legitimate online lenders work hard to keep their website user-friendly, informative, and always updated.
Also Read: 5 Easy Ways to Spot Pretentious Loan Sharks
Online lenders give loans to those with no credit checks. However, it takes a strict implementation of verification. To make your credit report better, take small instant loans from registered, licensed lenders such as Cash Mart and pay diligently. These lenders report your payments to the Credit Information Corporation or the Credit Management Association of the Philippines Inc., which helps you build up your credibility as a borrower. Once you have a better credit report, you can finally get crucial loans from banks such as housing and car loans.
Need an instant online loan from a reputable online lending company? Get it from Cash Mart today. Check Cash Mart’s website now and experience the best online lending in the country.