Seven Common Myths About Personal Cash Loan Philippines
Financial difficulties can happen anytime you least expect it. No matter how well organized your budget is, time will come that financial urgency may come across. In fact, even those employed and working people also face difficulty particularly if unplanned expenses happen before the payday. Good thing there is personal loan available that can make both ends meet.
Personal loan is a type of cash loan that can help in fixing short-term or quick liquidity. This unsecured loan is obtainable within a day and can be used for small amount expenses. However, some people doubt about the idea of applying this instant cash due to some myths connected to it. Here are some of the myths about personal loan:
- Personal loans are costly – Many people believe that availing instant cash is costly because of its interest rates. But, the interest rate is cheaper than the rates of credit cards. Thus, if you need instant cash, it’s better to take personal loan rather than using credit cards.
- No tax benefits – Another myth that many people believe and make them shun away from taking loans is that they think that it has no tax benefits.
- Bad credits prevent the approval – Not all people have good credit rating, some have bad credit score. This is one of the myths or misconception playing in mind of some people. Good news is that there are banks and even lending firms that offer personal loan to borrowers with bad credit rating. Though some lenders charged higher interest rates for those with bad credit, you can also find lenders offering affordable rates. That’s why you shouldn’t fear the rejection of your application.
- It doesn’t help reducing debt – Regardless of the type of loan that you’ll get, if you won’t use it strategically, it won’t help in reducing debt. Personal loan can help in reducing debt provided that you’ll use it wisely and not for shopping and other unnecessary expenses. You should use instant cash in paying off small debts, but considering debt consolidation can reduce and simplify debt.
- Long wait for the approval – Applying for loans from larger credit companies and banks may take weeks before the application gets an approval. However, you shouldn’t be hopeless if you’ll apply for personal loans because most lenders may approve your application the same day. All you have to do is to complete the requirements and to provide all the necessary information so that the lender can evaluate your application. Once you qualified, you can achieve the approval within 24 hours and the fund will be transmitted to your account immediately.
- Loans are additional burden – This can be true if the fund is not used properly. However, it’s not the same case with personal loan. Obtaining instant cash can help in fixing small amount of financial burdens. If you want to get out from spiral debts, the best thing to do is to apply for the appropriate type of financing right for your financial needs.
- Apply for amount more than the actual need – Cash loan is a short-term financing program designed to cover up unexpected expenses in between paydays. That’s why it’s impractical to apply for an amount more than what’s needed. If you want to be financially free, you should apply for an amount enough to fund the expenses and not for extravagance.
Personal loans are offered either secured or unsecured. If you’ll avail secured personal loan, you’ll be required to give collateral such as your asset, but the interest rate is lower as compared to unsecured loans. On the other hand, the unsecured loans have higher interest rates because the lender takes the risks without checking the financial credibility of the borrower. Another thing to consider in applying for loans is to choose the reliable lender. Nowadays, there are lots of loan sharks waiting for their prey. Choose a lender that has concern about their client’s financial situations.
You should be a responsible borrower, and you must know your limits. Never apply for an amount more than what you can afford to pay. Otherwise, it will only put you into trouble and worse in a pit of debt. Apply for cash loan that you can afford to repay so that it won’t greatly impact other financial obligations. When applying for loans, you should understand very well how it would help you. As much as possible, you should identify how you’ll use the money. Keep in mind that loans are designed to cover up financial emergencies. You should think many times before borrowing money that you’ll only use for buying unimportant things or for travelling. There’s nothing wrong with borrowing money as long as you have the capability to repay. It is your responsibility to keep your credit score in good standing, and applying for loans can make or break your record.
Author’s bio: Kash 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.