When we decide to take a new credit card or a loan, we always start off thinking that we won’t even miss one payment, so that our financial history remains unscathed. Although some of us might be able to keep up with this promise to ourselves, many of us, along the way, face situations where we cannot make our payments, and thus hurt our credit scores.
The problem arises when we need to apply for a personal loan with a bad credit. You may be turned down many times over since lenders do not easily trust those with a poor credit score. However, it is not impossible. Here are some tips that you could consider while asking private lenders for personal loans in Philippines.
- Have a co-signer help you
- Find banks that offer unsecured loans
- Online Private Lending
Getting a co-signer will help your chances of getting approved for a personal loan immensely. This is because the risk will be shared with the co-signer and thus the lender will be more willing to lend you the amount. You can’t just ask anyone to be a co-signer; he/she should have a good credit card history. You could ask a colleague, friend, relative or even your partner to co-sign with you. However, you must make sure that you are very prompt with your repayments because failure to not repay on time will hurt your co-signer’s credit card score. Also, if you do not comply with the bill statements, your co-signer will have to take full responsibility on the loan and pay back every Peso himself/herself.
There are many banks that offer loans in the Philippines. Many of them offer no-collateral loans. As long as you have a very good reason to borrow their money, most banks shouldn’t give you too much trouble while borrowing because after all, they need the business.
This can be a dicey option sometimes because there have been reports of online scammers. However, if you have no other option and you do your research well about the private lender; online private lenders can be a life-saver. Private lenders are willing investors you can find online who will help you out in your time of need. The terms and conditions regarding the financial statements can be discussed by you and the lender to reach one that you are both comfortable with. Sometimes these lenders can even be anonymous, but as long as you do your research well, this is a great option.
These are the ways you can get a personal loan sans hassle. There are certain things you must consider when you have found potential private lenders:
- Keep your loan application ready
- Make a list of lending companies
- Don’t give up easily
Your loan application letter must include the following: valid IDs, your monthly job income, your social security number as well as other expenses and savings. Also make it a point to write down your reasons for getting a personal loan as well as the details on when and how you plan on paying back the loan. It is best to have all this information up front so that your lender is confident in you.
When you apply for a loan in the Philippines, remember that it is not an easy job! You will have to comply with all the company’s standards and there are chances that your application will be denied even if you have all the information and you think you deserve it. Make a list of as many lending companies as possible ahead of time so that even if you are rejected from a few, you don’t waste time and go for others without wasting time.
You must know your faults to correct them. Remember that in many lending companies in Philippines, they have their own sets of requirements, measures and rules that they abide by. There are various reasons that your application could be rejected. If you are rejected from one or two, make sure that you learn from the experience; ask for feedbacks so that you know what your faults are and that you can correct them when you apply at a second place.
As long as you keep these tips in mind, your quest of getting a loan from a private lender should be successful.