All loans can be divided into 2 types: unsecured and secured.
A secured loan is called so because it is approved on the basis of collateral. An urgent deposit account or real estate. The interest rate is lower because there is lower risk compared to uncollateralized loans.
An unsecured loan is called so because it does not have collateral. Banks and lenders take into account the information and credit history that they will receive from you. Interest rates are higher due to risk.
Cons and Pros of Secured loan
• Submitting an application and obtaining permission is easier (due to security);
• Access to large amounts of your loan;
• Extension of payments accepted.
• Failure to pay contributions in full may result in your security being withdrawn;
• There are some secured loans that charge early repayments.
Cons and Pros of Unsecured Credit
• Easy and Quick method to get a credit;
• Flexible loan repayment terms
• Applicable only if you have a good credit history and regular sufficient income
• For this type of loan, interest rates are higher.
This is a report on the credit history of the borrower. Lenders take these reports into account to determine if you can be trusted, whether you repay the loan in full.
They also use this to determine conditions if you get approval.
Yes, you can get a loan even your credit history is bad.
The process will be more complex and you will need to fill out a ton of paper documents, additionally more thorough data verification and longer latency. Below are a few tips you can follow to succeed in getting your loan approved even with a bad or negative credit history:
• Be very careful when filling out the required documents.
• Send requirements as early as possible
• You should not request more than one loan at a time
• Spend time searching and considering the best possible lenders
Such online services do not work for free, they take their percentage of the transaction. Therefore, it is more profitable to independently find a lender and take a loan directly, without intermediaries. Our site will help you with this, you can easily and quickly compare all offers for the type of loan you are interested in.
Cash Loan, as a rule, is designed for small amounts up to 10,000 PHP and for a period of 1 month.
Such loans are issued by Payday lenders – micro financial companies. Interest rates are higher than those of Personal loans issued by banks. But the approval period is on average from 2 to 12 hours. Also a distinctive feature of such loans is the ability to arrange them through applications on the android.
Personal loans are often issued by banks. The loan term on average varies from 6 months to a year. The interest rate is quite reasonable and usually ranges from 11% to 20% per annum. However, the term for consideration of the submitted documents will be from 1 to 5 days.
Banks do not accept household appliances, phones, designer bags as collateral, unlike some pawnshops. Also, banks often have interest rates for this type of loan do not exceed 3%, and in pawnshops, interest rates usually vary from 3% to 7%.
Banks require confirmation of your solvency, but pawnshops do not.
Yes, today many banks and financial institutions provide loans to Filipinos, even if they are abroad. The loan approval process will take longer than if you were in the Philippines.