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Every day, you may get a lot of offers from many different banks. They may have different interest rates, bank promos, and other interesting offers. Choosing the right bank for applying for a loan can be challenging for you. You may want to take a look at all details, so you will never get trapped in an unfair loan deal.
It is necessary for you to compare all available details before you decide to choose the best loan for your needs. You have to do more research to get a lot of information about this loan. Here are some questions that you need to ask yourself before you sign a loan 5000 PHP agreement.
a. Do I have a good credit history?
This is the first question that you have to ask yourself. Before you justify your need to take any loan, you have to ask yourself this question. Do you have unpaid dues that will prevent you from getting approved for your loan application.
If you still have outstanding bank debt, it is recommended for you to settle it first before you decide to apply for another loan. If the answer to this question is yes, you can proceed to the next question. Make sure that you are responsible for repaying any loan you have.
Depending on the total amount of money you borrow, some banks can offer up to 5 years of the loan term. Photo by Joshua Hoehne on Unsplash
b. How am I going to spend a loan
Before you apply for a loan, you need to have a good reason for your loan application. It won't hurt you to reevaluate your main reason. The reason must be realistic and sensible. Always be honest with yourself about why you need extra cash now. Do you want to use the money for education, family emergency, or debt settlement?
Will your car loan be beneficial for you in the long run? Are you sure you are going to invest in a home now? And many other things. This step is very important to ensure that you can make this loan work well for you. You can avoid getting into a financial burden in the future.
c. How much should I borrow?
You are the only one who knows the exact money you can borrow. Generally, you can borrow up to 3 times your monthly salary for the persona loan. You have to decide on how much you need and you have to make clear budget plans for your loan. You also need to keep in mind that the total loan you can get is still subject to approval from the banks or other financial institutions.
d. What is the best payment term?
Depending on the total amount of money you borrow, some banks can offer up to 5 years of the loan term. The usual tenure offered by most banks in this country can range from 6, 12, 18, 24, 36, and even 60 months. You will pay the loan with add-on fees every month. Therefore, you will get higher accrued interest when you pay for your loan for a longer period. In other words, you are going to pay lower monthly payments when you choose a longer period. But, you will end up paying more expensive for any loan you take.
e. Where should I get a loan?
When you are looking on the market, you can find a lot of financial services that are offering the best bank rates for all users. You can shop around for finding the best loan with the lowest interest rates. The real rates posted on the official website only give you an idea on how much they can offer to you. It really depends on the real situation when you apply for the loan.
You also need to check the payment mode that will be convenient for you. You can go for the online banking, post-dated check, and also auto debit for paying you loan. You can also check the processing fees that may occur on your loan. It is a good idea for you to call several banks and institutions for finding more information about their loans, interest rates, and some other information. Going through all of those questions can help you protect your credit score, so you can maintain a good credit rating for your account in a lending company Digido.ph. Having a good credit score can increase your chance of getting your loan application approved.
keywords: online banking, debit loan, credit score, loan application, financial services.
BY CATHY CARTER
When you juggle your mortgages, utility bills, and credit card payments every month, using online banking to pay them off makes a lot of sense. It is a service that your bank provides to organize your bills and pay them on-time from your checking account. Some credit unions and online bill-pay services also allow this convenience with a minimum charge.
The biggest advantage of online payments is to get rid of writing and mailing several checks every month to pay your dues. However, nearly 1/3rd of Americans above 65 still do not use this mode of payment. If you are also wary of online payments or banking systems, let’s look at their benefits, functioning, and processes to remove your doubts.
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Why Should You Opt for Online Bill Payments?
With online banking services, you can automate your financial transactions, and bill payments are no exception. If you have bills with the same amount to be paid each month, such as car loans or mortgages, you can set up a recurring payment system using the online bill-pay services of your bank or a credit union. Even for varying bill amounts, you can schedule payments ahead to avoid missed or late payment charges.
The core benefit of online payments is a guaranteed and timely service if you have sufficient funds. Instead of visiting separate websites for each payment or writing manual checks, you can sign in to the bank’s online portal and complete an automated process within minutes.
Most importantly, it adds an extra layer of security to your credit card payments, especially if you have a shortage of funds.
How Does Online Bill Payments Work?
The online bill payment system links back to your checking account for making immediate one-time payments, recurring payments, or future one-time payments. You can easily set up online bill-pay with your bank or a private service provider by logging on to its portal. Link on the bill-pay section on the website and choose the relevant link to add a payee and the recipient service provider’s name.
The process will run smoothly if you gather all your bills with specific account numbers and addresses. Input the information into your bank’s platform and schedule payments when they are due. You can also set reminders to track the due dates for each payment.
And if there is no electric way to make payments, the banks also arrange for printing the checks and mailing them on your behalf to the respective service provider once you consolidate your payments in the system.
How to Use the Bill-Pay Service Safely
When you choose your bank’s bill-pay system, stay cautious, and make the payment safely. Here are a few vital things to keep in mind.
Have Sufficient Funds in Your Account
Though the system of online banking and bill payment is pretty straightforward, it may sometimes make you forget proactive bill management. After setting up a recurring payment, you may forget about keeping your account sufficiently funded to seamlessly let the payments flow. It may result in penalties for late payments or missed bill payments. So, keep sufficient funds in your checking account every month to avoid any difficulties
Adopt Safe Internet Banking Practices
Many people are skeptical about using online financial services due to the scare of hacking, identity theft, and other cyber threats. Sometimes, financial transactions conducted online can expose you to the risks of security breaches. However, it shouldn’t stop you from availing yourself of this convenience.
You can minimize the risk by setting up strong passwords and using secured networks when signing into your bank’s portal. As a general practice, avoid online transactions like bill payments or fund transfers when working on public Wi-Fi networks.
Transparency is Significant
Sometimes, when you set up a manual bill payment system with a service provider, you may notice some discrepancies down the road. It happens when you send a check to the payee through the service provider and get your account debited even without the payee cashing out the check. This will not only affect your bank balance but also result in penalties for late payments.
The best way to avoid such instances is to work with the bank that follows high transparency levels in its services. You can mostly find a reliable bank that provides the date when the check will be cashed and add it to your payment history.
Check the Fee If Any
Avoid last-minute surprises when tallying your account every month by asking about any service charges applicable to the bill-pay service. Some transactions are mostly offered free by your bank, while it may charge a monthly or transaction fee for your account in some cases.
Remember, online bill payments come with several benefits. You need to budget your expenses and pay attention to your account balances to reap these advantages.
(Disclaimer: The article is sponsored, and hence promotes some commercial links.)