Introduction
Managing a personal loan responsibly is crucial to avoid hurting your credit score. Whether you are planning to take out a personal loan or already have one, it’s important to understand how to manage it effectively. In this article, we will discuss some key strategies to help you manage your personal loan and protect your credit score.
Top 10 Fast Online Loans in Philippines – A Valid ID is All You Need Updated in July 2024
| Rank | Lender Name & Application Link | Loan Amount | Loan Term | Interest Rate | Repayment | ID Required | Age Range | Special Feature |
|---|---|---|---|---|---|---|---|---|
| #1 |
SOSCREDIT |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 70 | Receive money in 15 mins |
| #2 |
CREDIFY |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only National ID required | 20 – 70 | Receive money in 15 mins |
| #3 |
CREZU |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #4 |
FINBRO |
₱1,000 – ₱50,000 | 1 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 65 | Receive money in 10 mins |
| #5 | CREDITIFY Apply Now |
₱1,000 – ₱25,000 | 1 – 180 days | 0.1% | Monthly or End of term | Only ID Card required | All accepted | Approve Bad credit |
| #6 | CASHSPACE Apply Now |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #7 | DIGIDO Apply Now |
₱1,000 – ₱25,000 | 3 – 6 months | 0% for 7 days | Monthly or End of term | Only ID Card required | 21 – 70 | Receive money in 4 mins |
| #8 | KVIKU Apply Now |
₱500 – ₱25,000 | 60 – 180 days | 1.2% per month | Monthly or End of term | Only ID Card required | 18 – 65 | Receive money in 5 mins |
| #9 | CASHEXPRESS Apply Now |
₱1,000 – ₱20,000 | 7 – 30 days | 0% for first loan | End of term | Only ID Card required | 21 – 70 | Receive money in 5 mins |
| #10 | MONEYCAT Apply Now |
₱500 – ₱20,000 | 7 – 180 days | 0% for first loan | End of term | Only ID Card required | 22 – 65 | Easy loan approval |
Create a Budget
Before taking out a personal loan, it’s essential to create a budget. A budget will help you determine how much you can afford to borrow and repay each month. Take into consideration your income, expenses, and any other financial obligations you have. By creating a budget, you can ensure that you can comfortably make your loan payments without putting undue strain on your finances.
Make Timely Payments
One of the most important aspects of managing a personal loan is making timely payments. Late or missed payments can significantly damage your credit score. Set up automatic payments or reminders to ensure you never miss a payment. Making your loan payments on time will not only protect your credit score but also help you avoid late payment fees and additional interest charges.
Pay More Than the Minimum
While making the minimum payment on your personal loan is necessary, it is advisable to pay more whenever possible. By paying more than the minimum, you can reduce the overall interest you pay and shorten the loan term. Additionally, paying more than the minimum can help you pay off your loan faster, improving your credit utilization ratio and ultimately boosting your credit score.
Avoid Taking on Additional Debt
When managing a personal loan, it’s important to avoid taking on additional debt. Taking on more debt while you still have an existing loan can increase your debt-to-income ratio and put you at a higher risk of defaulting on your payments. This can have a negative impact on your credit score. Focus on paying off your personal loan before considering taking on any new debt.
Monitor Your Credit Report
Regularly monitoring your credit report is essential to managing your personal loan effectively. By checking your credit report, you can ensure that all the information is accurate and up to date. Look out for any errors or discrepancies that could negatively impact your credit score. If you notice any errors, report them to the credit bureau immediately to have them corrected.
Communicate with Your Lender
If you are facing financial difficulties and are unable to make your loan payments, it’s crucial to communicate with your lender. Ignoring the problem will not make it go away and can lead to more severe consequences. Lenders may be willing to work with you to create a repayment plan or provide temporary relief options. It’s always better to address the issue proactively rather than letting it escalate.
Conclusion
Managing a personal loan responsibly is essential to avoid hurting your credit score. By creating a budget, making timely payments, paying more than the minimum, avoiding additional debt, monitoring your credit report, and communicating with your lender, you can effectively manage your personal loan and protect your credit score. Remember, a good credit score opens doors to better financial opportunities in the future.