Updated: Oct 4
Taking out a loan is not taboo, it's convenient.
Ah, the life of a working millennial. In the context of the Philippines, marami sa atin ang breadwinners of the family taking care of most of the finances in the household. Meanwhile, others share the financial obligations with their siblings.
The Filipino Utang Culture
We always say “sakto lang 🤷🏽” once we’re forced to face our monthly expenses every time the paycheck comes in. Sakto lang for essentials, sakto lang for bills. But… what happens when enough is not enough? 🥲
It’s not uncommon for the typical Filipino to turn to loans as a form of cash assistance. With the rise of lending apps, Buy Now Pay Later deals, and same-day disbursement schemes, mas may options na tayong pagpipilian, especially when the situation calls for it ⛈️
And we shouldn’t be shamed for taking advantage of them!
So what should you need to know before applying for your first loan? Kahit pa through a bank yan or mobile app, mas maganda na’ng prepared ka:
Use loans to level up your financial game. Before taking out a loan, it’s important for you to understand its purpose ✅ Is it to repay an already existing loan? Dagdag pondo for your business? Or simply additional funds para pang-sustain ng living expenses?
No matter what it’s for, dapat may ROI ka after mo gamitin yung loan na kinuha mo 💅🏽
Keep tabs on your credit score via an app like Lista. It’s not necessary but it’s recommended that you check it at least every 3 months!
Syempre, the higher the credit score, mas guaranteed na merong bank o lending institution na tutulong sa’yo 💯 But if you’re still building your credit, there are ways naman to improve, like sticking to payments on time or doubling your income 💸
Assess your income and current assets. This includes listing down your monthly income and expenses. Or creating an inventory for your savings, investments, and material assets that may be worth more in the future 🤑 This way, you can evaluate how a loan impacts your financial picture.
*Knock on wood* Because when worse comes to worst (e.g. not being able to pay the loan in the long term), at least may backup plan ka 😌
With the rise of lending apps, Buy Now Pay Later deals, and same-day disbursement schemes, mas may options na tayong pagpipilian, especially when the situation calls for it. And we shouldn’t be shamed for taking advantage of them!
Compare loan offers and apply for the best fit. Now that you’ve done the first 3 steps, it’s time to go on a loan treasure hunt 💪 Do some online detective work 🔎, explore what banks and lenders have to offer, and keep an eye out for interest rates and hidden fees 👀 Basta, don’t settle sa kung ano unang makikita 🙅♀️
If you think you’ve found the loan that passed the vibe check, then shoot your shot! 🔥 Send in that application, play the waiting game, and hope for the best 🙏🏼
No matter what it’s for, dapat may ROI ka after mo gamitin yung loan na kinuha mo.
So, don't hesitate! Loans can be a game-changer to your finances basta you’re prepared. Just follow these steps, be smart, and own your financial journey. You got this! 🚀