Home Credit & Credit Information Corporation: 6 Master tips to be a Master Borrower

Who doesn't have a loan? Most of us have loans and it's not bad to say that we do have one. Some use credit cards for emergency, paying bills, personal purchases and more other reasons. Loans as we all know have many purposes like starting a business, for education and emergency as well. There are so many loan types with different purposes. According to data from Bangko Sentral ng Pilipinas, about 50% of adult Filipinos have an outstanding debt, while another 33% had borrowed money from the past. I'm sure that a lot of us can relate when it comes to the matter about debts.

Among these borrowers, there is an increasing number that has taken loans from lending or financing companies. For one obvious reason we see about the popularity growth of "non-traditional" consumer finance companies is the fewer requirements than banks ask for, and the approval process is much quicker.

There are individuals who still feel overwhelmed by the thought of applying for and repaying a consumer loan. After all, a loan, no matter how small, is a big responsibility. There are some who go straight into borrowing, without knowing if they are 100% capable of being a good borrower.

If you go with any of these camps, here are handy tips from consumer finance company Home Credit and its government partner, Credit Information Corporation (CIC). Master these tips, and you'll be a master borrower in no time!

1. Have a good credit record.

Before you even enter a store or the bank to apply for your next loan, ask yourself if you've been a good borrower in the past. Have you ever missed any due dates, or worse, defaulted on a loan? All of these may reflect in your credit history, which financial institutions take a look at before granting loans. If your credit history is good, then chances of approval are high. If not... you might just want to skip that loan application altogether.

2. First timers have a chance, too. 
But what if  you don't have a credit record, period -- that is, you've never had a loan before? It can be a vicious cycle -- some people don't get approved for loans because they have no credit records, but how can they get a record if they've never gotten a loan in the first place?

But there's good new: Home Credit, for one, can provide loans even to first-time borrowers, thanks to their sophisticated system for screening applications. The CIC, on the other hand, can get credit data even from telcos, and cable companies, then it just might be the ticket to getting your loan approved!

3. Know your rights, and read the fine print. 
Before you sign your loan contract, find out if there are any special conditions, or better yet, benefits that come with your loan. For instance, Home Credit offers the option to avail of insurance along with the loan; a 15 day "cooling-off" period that allows customers to pay back the full loan at no added cost within this time period; and a loan "safety guarantee" that promises full transparency on loan products with no hidden charges. 

4. On Time? Good. Ahead of time? Even better! 
Once your loan is approved and signed, remember your dues--that is, know exactly what you owe total, what you owe each month, and for how long. And of course, remember your due dates! "On time, all the time" is a good rule of thumb, but consider paying your monthly dues a few days in advance. That way, you're protecting yourself from unforeseen hiccups--e.g. technical issues, bank clearing days--that can lead to delays in posting payments, which of course leads to penalties (and a blemish on your credit record). 

Want an even better tip? Enroll your loan into bank auto-debit, if possible. That way, you don't need reminding every time your due date approaches. Just remember to keep your bank account funded!

5. If you run into trouble, just let your lender know. 
Even the most responsible borrowers can encounter financial difficulties that can impact their ability to repay. Sudden illness, unemployment, and unforeseen expenses are just some of the things that can derail our loan payments. If ever this happens to you, the last thing you want to do is to hide from your lender, or ignore their calls to remind you of your (over) due dates.

Your best course of action? Reach out to them, and be transparent about your difficulties. More often than not, they are willing to help--or at the very least, listen. In Home Credit's case, they even have a special unit in the company which reviews cases of customers experiencing extrordinary financial difficulties, and try to find solutions for loan repayment.

6. Turn that good credit record into a GREAT credit record. 
At this point, you may have realized already how big of a role your credit history plays in getting a loan--and how big of a role your handling of your loan plays in further shaping your credit record. Regardless of how small your loan is, missed or late payments can spell bad news for your credit history. On the other hand, if you are prompt and diligent with your payments, that small loan can do wonders for your credit history--and pave the way for more opportunities in the financial system. 

Home Credit Philippines is a consumer finance provider that promotes the principles of financial inclusion and safe safe lending, providing world-class financing services to qualified customers, seeking to buy appliances and mobile devices (computer, tablets, laptops and mobile phones) through monthly installments without a credit card. Home Credit Philippines operates in Metro Manila and in 27 Philippine provinces, with a blueprint to expand its business to other Philippines developed cities. 

For more details, visit www.homecredit.ph. 
Like and follow Facebook.com/homecreditph.