A bad credit history will not affect the approval of your application for any online credit.
A customer wants to apply for a cash loan or online credit of 90,000 php for a period of 180 calendar days. Under the loan agreement, the interest rate is 5% per month. The total amount to be paid after 180 days from receiving the money in debt will be 117,000 pesos, which includes the loan amount of 90,000 php and 27,000 php in interest that the creditor will charge for the use of credit funds.
The interest rate for using credit funds can range from 0.01% per annum (the minimum interest rate, usually offered as a promotion for new customers) to 80.77% per annum (the maximum interest rate). The loan amount depends on the specific creditor company that provides the service. The minimum loan amount is 500 php, and the maximum loan amount for an online loan to a card is 1,500,000 php. The minimum loan term offered by these companies is 62 days, and the maximum term is 72 months. In case of failure to repay the loan on time, the credit company has the right to charge a penalty in the amount of 0.1% of the overdue amount per day, but not more than 10% of the original loan amount. In case of consistent violations of the loan payment terms, the company that provided the money may take legal action or transfer the debt for settlement to third parties.
If the borrower fails to repay the loan amount and the interest for the use of the loan within the term specified in the contract, the lending organization imposes a penalty for late payment on the borrower. Typically, in the event of force majeure or delay associated with non-cash transfer of funds for loan repayment, lending organizations give their clients an additional three working days to make the next payment or pay off the entire loan amount. However, if the lending organization does not receive the scheduled payment within the additional time, it attempts to contact the borrower to remind them of the consequences of intentional non-payment.
If the lending organization is unable to contact the borrower for a long period of time, and loan payments continue to be overdue, the lending organization will impose a penalty, the amount of which is usually 0.1% of the total loan amount (exact information about fines should be clarified when signing the loan agreement). Remember that in case of failure to comply with loan payment dates, information about this debt may be sent to the debtor register and collection agencies. We recommend that all borrowers make payments on time and immediately notify the lending organization of any possible delays. The payment schedule is described in detail during the signing of the loan agreement for each individual organization.
In the case of timely loan payments (or even earlier than the term if possible), the borrower forms a positive credit history, which will help them in the future to obtain the next loans (regardless of the method of issuance: online, electronic money, or cash) for larger amounts and with the most attractive terms.
The website "Good Kredit PH" does not provide financial or paid services, is not a bank or lender, and does not collect money for the information provided, which is freely available to users. The information on our site is provided for informational purposes only.