Home Credit teams up with Credit Information Corporation to talk about Loans

If you use credit cards for pretty much everything or avail of consumer loans for big purchases, you are not alone.

 Nearly 50% of adult Filipinos have an outstanding debt, while another 33% had borrowed money from the past providing the loan based from the Bangko Sentral ng Pilipinas data. And out of these borrowers, there is a growing segment that has taken loans from lending or financing companies.

Home Credit ’s Head of Credit Advisory, Petr Lukosz and Head of Public Relations, Dmitry Borisenko gave an in-depth discussion on getting a loan and the winding the road to borrowing earlier today at Romulo’s Cafe.

 A loan is an amount of money that you borrow  with a contractual obligation to pay it back with interest.  The interest in turn   represents payment for the service.

Credit Information Corporation (CIC), a government-owned and-controlled corporation, that helps financial lenders secure reliable information on potential clients’ credit usage and previous payment activities was also present..  discanded everything from tips for loan applications, to maintaining a good credit history.

No matter how small a loan is, borrowing is a big responsibility and so it is important to know how loans work.

These tips from the consumer finance company Home Credit and its government partner, Credit Information Corporation (CIC), will give you a  better understanding of loans.  You’ll be a master borrower in no time and help you make better decisions about debt.

Have a GOOD CREDIT RECORD.  Before you even enter the store or the bank to apply for your next loan, ask yourself if you’ve been a good borrower in the past. No missed payments, no due dates or defaulted loan that will reflect in your credit history. So if your credit history is good, then chances for approval are high.

FIRST-TIMERS have a CHANCE, too. Even without prior credit record,   first-time borrowetoomay obtain a loan with Home Credit. It  provides non-bank loans on affordable installments, might be an ideal option in starting your credit history. The requirements for  gadget and small appliance loans via Home Credit are minimal, and the application process is not as difficult as other similar services.

Their sophisticated system for screening applications makes this possible. The CIC, on the other hand can get credit data even from telcos and cable companies, and share these with financial institutions.

Know your Rights, and Read the Fine Print. Find out if there are any special conditions or  benefits that come with your loan before affixing your signature on the contract.  Costs are a key part of understanding how loans work and knowing how loans work and what they cost will be  in your favor.

Home Credit offers the option to avail the insurance alone with the loan – a 15 day colling-off period that allows customers to pay back the full loan at no added cost within the time period and a loan “safety guarantee” that promises full transparency on loan products with no hidden charges.

Paying On TIME is GOOD. Paying  ahead of time is  Even better. Loans are based on a reciprocal relationship: a bank lends you money today and you repay it tomorrow with interest.

Once your loan is approved and signed, remember your dues and know exactly what you owe total, what you owe each month and for how long. That way, you’re protecting yourself from unforeseen hiccups like bank clearing delays, technical issues, etc. that can lead to delays in posting payments.

Good thing with Home Credit is you can enroll your loan into bank auto-debit. That way, you don’t need reminding every time your due date approches and make sure that your bank account funded.

If you run into trouble, just let your lender know. Defaulting  shows that you are not capable of fulfilling your responsibilities under the loan contract. If you miss  payment deadlines due to  financial difficulties,   reach out to them and be transparent about your difficulties.  Lenders are willing to help or at the very least, listen.

Home Credit has  a special unit in the company which reviews cases of customers experiencing extraordinary financial difficulties and try to find solutions for loan repayment. That way, we can turn a good credit record into a great credit record.

Home Credit Philippines is a consumer finance provider that promoted the principles of financial inclusion and safe lending, providing world-class financing services to qualified customers, oftern first-time borrowers.

Visit www.homecredit.ph for more details.