Important Things You Should Know About the Truth on Personal Loans
Personal loans are a friendly refuge when it comes to financial emergencies. People consider it as a friend especially when they need money to fund their business, buy a new car, pay for tuition or book travel. Wise borrowers use loan money to consolidate their debts and even finance a productive activity.
Indeed, borrowing from banks and other lenders can be a profitable venture but before you submit those requirements and apply for personal loans, here are important truths you should consider so you can maximize the advantage of this facility.
Truth #1: Banks Aren't the Only Ones to offer personal loans
Although banks in the Philippines offer an attractive interest rate, there are also some lending institutions that might provide the best package. Loans are not only about the interest fees. You also need to check on rebates, APR and processing charges. Some lenders might charge higher interests, but a particular portion of these are waived if customers pay on time for the entire duration of the loan.
There are essentially a lot of options out there so compare personal loan packages with GoBear and find the best one that suits your need.
Truth #2: Some lenders have hidden and additional fees
Don’t get blinded with the lowest interest offered at first. Costs on the application, early repayment and delinquencies might overshadow the low-interest rate façade. Before signing anything, make sure that your lender is transparent with the fees that go with your loan application.
Truth # 3: All personal Loans are Technically the Same
Like any other types of loans, personal loans provide you with lump sum money which you need to pay with interest at a predetermined period. You may opt for shorter loan duration, but lenders usually set a minimum of one year to a maximum of 7 years’ repayment scheme.
Truth # 4: Personal Loans may not be the Only Option
Your financial emergency may not only be resolved by personal loans alone. If your credit history is good, then you can easily apply for other options like cash advances that have lower fees.
Truth # 5: Personal Loans can be Used in Different Ways
Even those financially healthy people still apply for loans because it is flexible to use. You can fund your dream wedding or much-coveted travel adventure You can also start a profitable business which you have been planning for years already. The catch is to make sure you borrow what you can afford to pay and use the money according to your intended goals.
Truth # 6: Your Credit Score can Make or Break You
You can provide all the documents and comply with the bank requirements, but chances for loan approvals highly depend on your credit history. How you managed your debts in the past speak highly of your ability to pay for future borrowings. Before applying, you need to repay your debts and check ways on how to improve your credit score.
Knowing the intricacies of personal loans can help you improve your chances of getting approved. If you are confident that your requirements are compliant with that of the lender’s standards, then it is time for you to check loan packages with GoBear.