Applying for cash loan online philippines is not complicated, the difficulty is how to get the loan to be used for the right purpose to solve financial needs and ensure personal financial health. To this end, you must first be a disciplinary and responsible borrower for your loan. Understand the following tips to manage your loan in particular and personal finance in general more effectively.

1. Understand your financial situation

When applying for any cash loan online philippines, the first thing you need to do is evaluating your finances, your monthly income and expenses, how much you have to repay the loan each month. This will help you determine your repayment ability and make a good loan decision.

The financial experts generally recommend that the debt-to-income ratio (which is the total amount of monthly debt owed to total monthly income, expressed as a percentage) should not exceed 28%. By understanding your financial situation from the outset, you will determine your actual loan limit to suit your repayment ability.

Review your financial situation to apply for good loan

2. Investigate and compare the lenders

There are hundreds of online cash lending institutions in the Philippines, so you need to spend time investigating and comparing the different lenders to find a reputable and suitable one which can provide you the most advantageous loan.

Initially, of course, you should check the legitimacy and service quality of the lending institutions. You may check on the official website of Securities and Exchange Commission (SEC) of the Philippine to see if the organization is legally registered. As for evaluating the quality of service, you should read customer reviews on social networking sites, google or from others word of mouth.

Check the legitimacy, compare the interest rates of the lenders

You should also compare interest rates and costs of different lending institutions to find out which can offer you the best interest rate. Expenses incurred outside of the loan are unavoidable, but the reputable institutions will be confident to be transparent with you about these costs. You should be wary of any institutions which are not transparent or evasive about any costs incurred.

3. Read and understand loan terms

Another tip for you to increase your responsibility for the loan is to carefully review the loan contract, understand the terms thereon. You should pay special attention to interest rates, repayment terms and fees. The contract specifies your rights and obligations, so you should clarify any unclear terms or conditions to protect your rights and avoid losing money.

Understand the loan terms on the contract

4. Paying debt on time

It is extremely important in any cash loan online philippines is to pay in full and on time. Not only will this keep you accountable for your loan, but it can also improve your credit score. The tip is to set up automatic reminders to notify you when your payment is due, or you can choose the institutions that remind you when your loan is almost due. In the event that you are at risk of failure to repay the loan on time, contact your lender quickly to find the least damaging solution.

Set a reminder when your payment is due

5. Avoid reinvesting and lending many times

Finally, you must understand that revolving loans or applying for too many loans at once will only add more financial pressure on you and adversely affect your personal finances. Avoid repeatedly reinvesting and lending. You should ask your lender for advice when you have anything in mind to do with your outstanding loan.

Among various online cash lenders operating in the Philippines, MoneyCat is one of the brightest brand thanks to its rich experience in operating in the Philippines and quality assurance. At MoneyCat, we always provide you with the loan that best suits your financial situation and repayment ability. Competitive interest rate of 11.9% and additional costs will be clearly disclosed on the contract. In addition, MoneyCat’s system will automatically remind the customers when the payment comes due and to assist if you notify them of the delay. MoneyCat always makes it easy for you to have a useful and memorable loan application experience.

Above are 5 tips to make you more responsible with cash loan online philippines to help you manage your personal finances more effectively. However, there are still useful tips and advice on personal finance that you do not know, contact MoneyCat for 24/7 advice.