Kash Martinez from loansolutions.ph shares 7 common myths about personal cash loans for Filipinos. Read on.
The word loan might make some people cringe because they consider it as a form of debt, which already has a negative connotation to it. At different stages of life, it really is necessary to file for a loan to pay off emergency situations or even get a step closer to our dreams without breaking the bank. For those who have steady jobs, good financial management and little to no credit are entitled to get a loan. Most people, if not all, may hold several loans over a lifetime. It may come in the form of an auto loan, housing loan or even a personal loan. Others may look into obtaining a salary loan Philippines. There are different kinds of loans. Before considering any kind of loan, educate yourself by reading these myths that are circulating before making the right decision.
#1: All Personal Loans Require Collateral
Many people are unsure whether or not to list their personal assets as forms of collateral because these personal assets can suddenly become at stake if a loan is not paid on time. Actually, unsecured loans don’t require collateral. You can find more information about the type of loan you’ve been eyeing for through thorough research or ask questions to those who lend loan services.
#2: My Current Credit Rating Can Make or Break that Chance of Getting a Loan
It may be a factor, but it certainly isn’t the only one. When you are applying for a loan, there will be a comprehensive assessment that will determine if you are a fit candidate for that loan. Different types of criteria will be used including your current credit rating. Your chances of securing that loan are big if you can minimize your expenses so that a portion of your income will go into paying that debt off.
#3: All Loans Enforce Unreasonable Interest Rates
A person who has experienced a negative credit history will be given a higher interest rate because that person is deemed as high risk. However, if you are not that kind of person, interest rates will be kinder to you since you are seen as someone with low risk.
#4: Applying For More than What I Need
Having a lot of cash at present might be great, but it will hurt you in the future. It will take more time paying that amount back and not to mention, the interest that has been incurred. It is not always a guarantee that you will pay it on time because emergency situations might arise, thus hurting your credit score. Only apply for what you need and be sure that it is on top of your list of priorities.
#5: Having Bad Credit Held Me Back from Applying for a Loan
There are some people out there who have refrained from applying for a loan because of their current credit history. However, you can minimize this problem by applying for a personal loan only to be used to pay off debts that incur interest in the long run. If you are able to pay them off, it will do you a lot of good because it will elevate your credit score. If you do your research correctly, you will find that there are plenty of legal financial institutions that are willing to give you this kind of loan.
#6: Paying Off One Loan at a Time
There is no definite limit when it comes to filing for a loan. As long as you have the income, the strict discipline when it comes to balancing finances and ability to pay a loan on time, you can apply to as many loans as you can. However, you must be willing to make a lot of personal sacrifices on your end and be prepared for any worse case scenarios that might come up unexpectedly.
#7: Applying for a Loan that Will Pay Off Other Debts
Getting a loan to pay off loans sounds crazy, right? Actually, people have considered this especially if they have multiple loans to deal with. What they do is combine all of these loans and make them into one big loan with a single interest rate. It makes it easier to keep track of instead of different dates at different interests.
Before taking any loan into consideration, identify your own needs first based on your current financial situation. For example, if you are trying to pay off your credit cards that have accumulated interest, you may want to look into a personal loan. If you are considering a salary loan Philippines, be wary of high interest rates and high costs unless if you have the financial means to pay off your debt/s. Whichever loan you choose, be sure you are able to pay it off immediately so that you’ll be debt-free in no time.
Kath Martinez, understands the intrinsic attributes of making excellent content that suits the needs of every business especially when it comes online financing. She can conceptualize and implement marketing plans, explores profitable B2B opportunities and then absorb Loan Solutions PH services.