Asteria Lending Inc. Unit 305 3/F 6762 National Life Insurance Bldg. San Lorenzo, Ayala Ave. Makati City
We’re Open: Mondays – Fridays
Office Hours: 9:00 am – 7:00 pm
Email: [email protected]
But, sometimes, there are solid financial reasons for choosing a personal loan too. Here are some of the best reasons to be thinking about a personal loan in the Philippines.
We’ve picked five key times in your life when choosing to apply for a personal loan is a good course of action for you:
Often a big expense can creep up on you. Despite your careful financial planning, something happens which means you need to purchase something you hadn’t budgeted for. This could be due to an appliance breaking down, a vehicle no longer being fit for purpose or an emergency repair to your home.
This type of financing can be secured in a variety of ways. You could apply for a salary loan from a company like Asteria Lending or could approach a bank. Perhaps the business you are purchasing from offers a finance deal, or maybe a payday loan would tide you over for long enough.
Some debts are convenient but also very expensive to hold onto. Credit cards, for instance, can get the bearer into a difficult situation if they are up to their limit and only able to make interest payments. The total amount doesn’t reduce, yet the monthly payments can be cripplingly expensive.
Putting all these types of debts into one pot and paying it off at a lower interest rate makes good financial sense. With a consolidation personal loan, you could be paying back your debts sooner and with an affordable monthly repayment plan. Lenders look favourably on those who have kept up repayments on their credit cards, even if they have been unsuccessful in reducing the balance overall.
Celebrating a special event shouldn’t be restricted by the money you’ve managed to save. If the cost of something like a wedding, graduation or anniversary is more than you’ve saved, a personal loan can help to give you the big day you deserve without cutting any corners.
It’s not a good idea to take out a larger personal loan than you can afford to repay, but if your income is enough to meet the repayments comfortably, there’s no need to hold back on your celebration plans.
If you’ve recently graduated, you might already be feeling the burden of your student loan. With typical interest rates of 6.8 per cent or more, these debts can feel like they’re going to stretch on throughout your life, hampering your ability to bank all of your earnings.
Refinancing student loans with a personal loan can mean you pay less in interest than you were. The fixed monthly payment means you can budget more accurately and may be able to pay them off sooner than if you kept them as they were. No doubt you had a co-signer when you initially applied for your loan, so by taking your own personal loan you can release them from their commitment too.
If you’ve had issues in the past, a poor credit rating can inhibit you from getting the best deals on personal loans and other forms of borrowing. Taking out a personal loan, even for a small amount, and making every repayment on time proves to lenders that you are a responsible borrower and will improve your credit score.
Similarly, if you have a lot of debt outstanding on credit cards, payday loans and other high-interest forms of borrowing, putting this all into one manageable monthly repayment will give you a lower credit utilisation ratio. Just make sure you stick to the repayment schedule to avoid damaging your credit rating further.
Your personal financial situation will have a bearing on the type of loan you can secure. Those with a good credit history and good income level may be able to access an unsecured loan, which means no collateral will be required. Less than perfect credit records or low incomes may require secured loans or even loans without a credit check involved.
Be aware that a loan with no credit check or an unsecured loan tends to have higher interest rates than those which use collateral to reduce the risk to lenders. If you are able to offer up a deposit, a vehicle or a property as collateral, your loan could be much cheaper in the long run.
Personal loans can be a great asset to bail you out of a difficult situation. There are many types and variations of personal loans out there, each of which has its own set of pros and cons to your situation. Whichever you opt for, be sure to compare offers from different lenders and ensure you are making a well thought out decision.