Personal loan application


There are plenty of reasons why people are considering personal loan – buying a car, buying a new house, house remodelling, or a big wedding, the idea is limitless just as long as you’re using it for a legal reason. Taking out a loan is a huge responsibility, so you can’t just jump and sign the contract. 

The most common personal loans are secured and unsecured loans. A secured loan is taken against a collateral. This means that you have to take out an asset of the same amount of the money you are going to loan such as a home equity. It’s also much quicker compared to taking an unsecured loan. Since there is already physical asset that can be defaulted when you’re unable to pay for your loan, banks give much lower interest rates for secured loans.

An unsecured loan is usually given to people who have a good credit history and high credit scores. One reason why people consider getting a credit card so they can build a good credit history.

If you have decided what kind of credit card you are using, read on the following things you need to consider before you take out a loan:

Do you need it?

You can’t just simply take out a personal loan just because you want to. If your intention is to invest it on stocks or commodities, it’s better not to pursue it. Personal loans are made possible for genuine needs like marriage, hospitalization or education. It will also become harder for you to get a loan if you don’t take your intention seriously.

Interest rates

There are plenty of personal loan deals available, but with all the advertisement available, it may be difficult to differentiate the real ones from the faulty ones. Just because they offer a low-interest rate doesn’t mean it’s a good deal it may mean that the repayments will carry for a longer period of time. If you find a loan that has a reasonable interest rate and loan term, then, by all means, sign those papers.

Penalty charges

In case you are unable to pay your fees on time, there is a penalty that is charged to your loan account. Make sure that you know the exact details concerning the penalty that may get charged in case of any circumstances arising in the future. You have to ensure the affordability of the loan and make sure you can pay for it before you even consider taking out a loan.

Your credit history

Check your credit history first before you apply for a personal loan. This way, you’ll know if you’re qualified to take a loan. If you have existing loans, it’s better for you to pay them off or it will only reflect on your credit history when you take out a loan, and you don’t want to do that.

Compare the best deals

Before applying for a personal loan, find a personal loan company whose product match your needs. Look for a personal loan with the lowest interest rates. The lower interest rate you can find, the lesser the cost of borrowing the from the bank. You can also look for a company that offers the flexibility you need so you don’t have to pay in a hassle.

A personal loan can be a smart financial move but you must keep in mind and take in consideration this terms that will help you make smart decisions with your credit card. Make sure that you have considered all these important things that you keep in mind first before you start casually going to a bank. Don’t just apply for a personal loan on a whim and get yourself in trouble.


Find the best deals on personal loans with GoBear today and get a personal loan that best suits your financial capacity. Make smart decisions by comparing personal loans with GoBear today!

Compare personal loans in the Philippines