According to the Bangko Sentral ng Pilipinas, as of 2015, 47.1 percent of Filipinos have or had debt. By borrowing money, this means it could be a loan from friends, family or relatives (61.9 percent), lending companies (12 percent), or banks (4 percent) among other channels. Because of this, lending became easier and more accessible, thereby giving you more opportunity to borrow money.
Thus, the birth of lending companies that offer cash loan ONLINE.
Don't get too excited yet. Here's how you can borrow money online, plus tips to remember before you click the "Apply Now" button:
1) Establish not just how much you need but also the sense of urgency to borrow.
Keep in mind that getting a loan is a serious responsibility that comes with risks. This is why before you apply, you need to determine not just how much you REALLY need but also how urgent that need is to borrow money. Borrowing from online cash lenders will only take you one to two days of processing before you can get your money, so make sure you really need it.
2) Look for a reliable and legitimate online cash lender.
Online cash lenders are proliferating these days. This is why the SEC warned the public to be careful against online lending companies that are operating to fool the public. Therefore, make sure you only borrow from reputable lenders.
Here are some tips to check if your online cash lender is legitimate:
- Check the website security. There must be a small green lock beside the URL and the link must start with "https." This signifies that the company has SSL certificate and went through strict validation process.
- The online cash lender must be registered with SEC to operate as a lending company.
- Check for physical address and telephone number to assure you that you can reach them anytime, anywhere.
- The website must have a Provacy Statement.
- Online loan calculator must be present in their website.
- There must be real and existing reviews in their social media accounts.
- Does not ask payment of advanced fees.
3) Check eligibility requirements.
Once you narrowed down your choices of online lender to two or three, the next step is to check their eligibility requirements. Most lenders require that borrowers must be at least 18 years old, has a government-issued ID, able to present proof of income, and have proof of billing. Make sure you meet these requirements to make loan processing faster.
4) Apply online.
Since you are borrowing from an online cash lender, you are expected to apply and submit everything online. This won't take too much of your time, so make sure you fill and provide all the information needed to verify your identity and capacity to pay for the approval of your loan. Honesty is important, so provide real and truthful information about you.
5) Anticipate a call from the lender.
Online cash lenders may verify and even ask information you stated in the application form. Be ready to answer their questions as part of their verification process. Nonetheless, some lenders may not call, as long as you provided all documents that will verify your identity and capacity to pay.
6) It's okay to negotiate.
Lenders understand that money can be an issue. Don't be afraid to re-negotiate terms, especially if you are having financial difficulties come your due date. Just make sure you contact your lender immediately so you can both come up with a solution that is beneficial for both parties.
7) Wait for the decision.
This will depend if you are a new or returning customers. Returning customers usually have faster approval rate because identity has already been verified. If you are a new customer, please wait for one to two days. Online cash lenders process voluminous loan inquiries and applications as well, so they may not meet your expected target. Nonetheless, they are doing the best they can to address all applications and concerns.
8) Receive the cash and make sure to pay on time.
Bank credit is the most common way to transfer the approved loan amount to you. Once approved, expect that the cash will be credited to your account as soon as possible.
Consequently, pay your loan on time. Even if everything happened online, your loan with an online cash lender will still reflect in your credit history. Pay on time or even earlier to avoid any penalty and a negative effect on your credit score.
Are you ready to apply? Loan Ranger can help. Give us a call today and we'll tell you why we are the best choice for your immediate cash needs.