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Unsure if You Need a Loan? Answer These Questions First

Decision making is a major part of our everyday life. We have to choose wisely as most of the time, making a wrong decision may get us into an unwanted situation, especially if it involves money. In this very same case, initiating to get a loan would help us receive the financial help we might think we need. However, it isn’t just a matter of you simply receiving the amount, it’s also about the requirements and policies that you’d have to follow in order to attain your personal loan. With that in mind, here are a few important questions to answer first before applying for one:

1.  Are you at the right age?

You may think that this would solely refer to 18, however, most companies and establishments would actually require you to be at least 21 years of age. Being at this particular age would estimate that a person would at least have a job and means of earning by then, not to mention, the required government I.D.s to back it up. You may ask, what does having a job have to do with getting a loan? Well, the answer lies in the next important question.

2. Would you be able to pay back?

First of all, let’s define what a personal loan is. Simply put, it is any amount of money borrowed from an individual or a financial organization. Notice the word “borrowed.” This is why it’s a requirement to have a job before applying for a personal loan, since you would not be able to pay back the borrowed amount if you have no means of earning cash. Take note of this, as the company or establishment that you would “borrow” the money from would require paperwork as proof that you indeed have a job.

3. What would be the amount that you’re going to loan?

Of course, never forget to determine the amount that you’re hoping to receive. You may need to explain this as well to the representative when applying for the loan since they would determine whether you would be approved to receive your desired amount, or perhaps lower than what you expected. Your job and monthly earnings would come into play at this point, since loaned money is borrowed money, and you can’t pay back borrowed money if your earning isn’t living up to the amount that you wish to acquire.

4. Do you have a good credit rating?

A credit rating is defined as the estimate of the ability of a person or organization to fulfill their financial commitments, based on previous dealings. So basically, this is a record of your past transactions (whether you had borrowed money in the past) and if you were able to pay your past debts or not. When applying for a loan, the establishment would look into this and determine if they can trust you to pay for the money you are requesting to borrow. A good credit score would help with your application, while a bad credit score may ruin your credibility for a loan.

5. What would be the purpose of your loan?

There is a reason why you would like to apply for a personal loan. You may either want to consolidate your credit card debt, for home improvement purposes, to invest in your business or simply to take a vacation. Regardless, knowing the purpose of your loan would help you not only receive the best deal out of the whole process but also remind you of the terms involved in the underlying payments that you would have to accomplish after a set amount of time.

After reading through our tips, the next step is to find a loaning institution that would best fit your financial needs. Look no further than Cebuana Lhuillier’s Happy Loans, a multi-purpose loan amounting to Php 5,000, Php 10,000, or Php 15,000 offered to any individual who is employed, self-employed, student, or a remittance beneficiary. Our network of more than 2,000 Cebuana Lhuillier branches and online presence give customers unlimited access and utter convenience in applying for a loan. Our five-point application to disbursement process ensures services are delivered on time. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

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