In the Philippines, there are many loan providers that offer different types of loans such as personal, home, and car loans. However, these lenders have their own criteria and requirements for certain types of loans. This leads to a lot of frustration for borrowers who want to obtain a loan with ease.
Loans are a necessity for many Filipinos as they need to pay for their daily expenses. The lack of access to loans is one of the reasons why the country’s poverty rate is high. The country has a high poverty rate compared to other countries in Asia and the Pacific. It is estimated that around 23% of Filipinos live below the poverty line, with more than half of them living on less than $2 or approximately PHP 100 a day.
Fortunately, there are legit loans in the Philippines that are willing to give individuals and businesses achieve the financial stability they want. The following are some of the many loans you can find in the Philippines.
- DigiDo Loan
- Money Cat Loan
- UnaCash Loan
- Cashalo Loan
Whilst, here are some of Credit Services available in the country:
- Online Loan Pilipinas or OLP
The Credit Services available in the Philippines has many sources. One of which is Money Lenders. The latter provide loans to people who are not qualified for bank loans because of many reasons like lack of collateral, bad credit scores, or they have a criminal history. Unfortunately, Money Lenders charge higher interest rates compared to bank loans since their loan approval is much faster–making transaction fees expensive. Also, Money Lenders has much more risk at stake when it comes to letting people with bad bank histories borrow money.
On the other hand, the best ways to boost your credit score in the Philippines is by having multiple credit cards, prevent applying to more than one loan at a time, staying within spending limits, and paying attention to your banking online activities. Other people may find this hard, but these are only the ways to expand the top credit services available to you.
Keep in mind that the company you will choose is granting loans from their own capital funds sourced from not more than 19 persons. Also, its primary activity must be granting loans to the public and is not picking private or special persons before lending money. As long as one is qualified to their terms and conditions, the company should grant loans to the former.
Moreover, the credit company can grant loans within reasonable interest rates, transactions fees, and charges. Any of which should be in the agreement between you and the company. This is to comply to the provisions of R.A. No. 3765 or Truth in Lending Act. and R.A. No. 7394 or Consumer Act of the Philippines.
The most important part, search if the crediting company is conducting their business through the authorization of SEC. Without it, no credit company is obligated to let their funds borrow by a debtor.
If you don’t know where to find more information about loans in the Philippines, visit upfinance.com. Their service is to help find financial services nationwide so you can promptly find a loan that is suitable for your needs and terms of conditions. Upfinance is so convenient to use since they partnered with large selection of loan and credit companies – this includes bank loans and other authorized/certified lending companies.
With Upfinance, you have the ability to find the most suitable loan for you since it has large selection of available loans in the country. Also, all of the partnered bank and loan companies of Upfinance has the Certificate of Authority to Operate from SEC.
You can also get a free consultation on Upfinance and they will send your applications to over 320 financial institutions in the Philippines in merely just 10 seconds. So what are you waiting for? Visit Upfinance website so your loan applications are guaranteed.
Credit terms policies in the Philippines
Credit terms policies are a set of guidelines that outline the terms and conditions for how credit is granted to customers. It is important for businesses to have a clear policy in place because it helps them avoid legal disputes or even legal actions.
On the other hand, here are some of the many credit companies in the Philippines:
- Ever Ready Credit and Finance Corp.
- Aeon Credit Service Philippines Inc.
- UCPB Leasing and Finance Corporation.
These financing companies in the Philippines also offers investment houses, savings, insurance, or other financial needs. The key legislation to govern credit companies in the country is the Financing Company Act of 1998 where a company is primarily organized to extend credit facilities to people. Other facilities can be in the state of agricultural enterprises, buying and selling contracts, leases, mortgages, or other evidence of indebtedness. Without the said republic act, no credit company has the authority to operate.
Credit Score in the Philippines
A good credit score in this country can help you get approved for a loan, get a cheaper rate on your loan, or even get you into a higher-paying job. In the Philippines, a credit score should range from 300 to 850.
The credit score is calculated based on the information in your credit report. To improve your credit score, you should make sure that your account is in good standing and that there are no late payments or defaults. It is also important to maintain a positive payment history.
Author Maria Torres from Upfinance.