Low On Funds After The Holidays? It’s Time To Get Through The Next Season Debt-Free With The Best Online Savings Account

online saving account

We all love Christmas holidays for the moments of true joy they bring, but we hate the time when they end. And one of the reasons why is the huge hole they make in our budgets. Exchanging gifts, parties, family reunions, and the shopping madness cost a pretty penny… According to Discover’s survey, more and more people rely on credit cards as ultimate holiday payment method now, so no wonder that by the end of the holidays many of us find ourselves in an impressive debt. Not a good start of a new year… Wonder if it’s possible to survive holidays without running into debt (and without becoming Scrooge)? We believe yes if you start planning your next holiday’s expenses early – even now! We are going to share 5 ways how to get through the holidays debt-free including tips on choosing the best online savings account for the ‘most wonderful time of the year’.

1. Figure out your Christmas budget… after the holidays end

Don’t put off setting your holiday budget to the ‘-ber’ months. The best and easiest way to accumulate a considerable sum of money for the holidays is to make savings on a monthly basis during the whole year. But you need to know what sum of money to aim at. In January, when holidays have just passed, you remember how much everything cost you and what you would like to add to your celebration list. So grab your pen and a piece of paper (or equip yourself with one of those tech-savvy Christmas planning apps) and write down all those items (like gifts, travels, entertainment, charity, decorations, new outfits, photo shoots and so on) accompanied with their approximate cost. Then calculate your total budget for the next holidays.

2. Shop all the year around!

Who said one must shop for gifts only in November and December when malls are crowded with other folks chasing same goods you do? Not only are you more likely to buy goods of inferior quality malls try to get rid of using discount prices, but also you are more prone to impulse and spontaneous buys you can regret about later. Try to shop for holidays stuff purposefully throughout the year focusing on what you really need and make meaningful buys. For example, the lowest prices on winter attire are in January, for winter sports gear in March while April is for beauty products.

3. Book and plan your travels early

Analysts at CheapAir, the website featuring bargain travel deals, notes that the 26th of December and the 2nd of January are the most expensive dates in term of holiday travels. But if you book your trip early, you can be more flexible with the dates and, as a result, score the best price and – what is also pleasant – avoid crowds. The same is also true for booking hotels. If you have never tried such giant travel agencies as Bonfire Adventures or Expedia , now it’s a good time to find out how their discounts work and strategize a bargain deal for the next holidays.

4. Earn cash back to buy more

Many online shops give a considerable cash back (sometimes up to 10%) for your loyalty. You can use it for buying more gifts. The trick here is to remember to only buy things you really need; otherwise, hunting for rewards can end up in you having to spend more instead of getting more.

5. Open a savings account for the next holidays

The smartest way to set some cash aside for the gifts and other holiday expenses is to start building up a high-interest savings account right now when the new year just began. Easy-access saving accounts save you not only money, but also time. For example, Mombo Sacco savings account in Kenya enables you to accumulate a substantial holiday budget at 6% per annum by contributing small fixed monthly payments (KES 3,000) each payday right from your device using the Mombo App. Another remarkable benefit is that after 3 months of participation, you can get access to a loan (amount equal to 5 times your savings) for any unpredictable expenses that may arise during holidays. This makes the best saving plan ever.

By following these tips, you’ll be better off when the next holiday season arrives. Remember to start early as building up holiday savings doesn’t happen overnight; it’s a year-long strategy.

How to Not Succumb To Confirmation Bias While Investing

confirmation-while-investing

The human brain is more similar to a programmed software than we admit it to be. There are certain habits that all of us are guilty of having, and in most cases, these habits affect all of our decisions in a similar fashion.

One such habit is the “Confirmation Bias”. If you’re unsure about what it means and hence assume that you probably don’t have it, let me assure you that you are probably wrong.

The confirmation bias is something most of us suffer from. It is the tendency to look for proof that supports our beliefs, and ignore or disbelief those which go against our ideas. This bias affects almost every decision we make, no matter if we acknowledge it or not.

Starting from choosing the best cereal to buying electronics from a brand, we tend to stick to the companies that we believe to be the best. A prime example would be my belief in buying Apple products, which leads me to continuously look for reasons to validate why it is the best brand for smartphones, while ignoring anything negative I hear.

As I said, all of us are affected by confirmation bias to some extent.

However, when confirmation bias starts to affect our decisions regarding our investments, it is something to worry about. If you invest in stock exchange business, continuing to hold on to a declining share just because you “believe” its price will increase since it did in the past, you are being controlled by your confirmation bias.

You might even go as far as discussing the matter with someone who has no idea about it and ultimately convince them to agree with you, or, talk to a person who is directly related to the falling company who will undoubtedly speak in favour of it, therefore validating your own bad decision to yourself.

If you have a financial adviser who supports such and all other decisions of yours without a second question, it’s time you find yourself a better one.

Therefore, the first step to avoid confirmation bias is to acknowledge it. The moment you realize that your decisions are being driven by solely your perception towards an investment, and not by facts, you will be able to open up your mind to actually consider the truth.

There are a few more things you could do to keep the effect of confirmation bias to a minimum (as it’s nearly impossible to get rid of it!):

Analyze ALL facts with equal strictness

A common mistake that most of us make is that we do not give equal importance to all the facts present in front of us.

For example, in many circumstances, I have made a choice to invest in a stock just because I had not invested in some time and hence I assumed I have to invest now by hook or crook.

Therefore I invested in the first share that seemed profitable to me, without judging or analyzing the statistics and real empirical values of the share at that current time or predicting how they might change. Consequently, I ended up with a loss.

Find someone to argue with you

As human beings, we tend to interact more with people whose opinions are similar to ours. While this might bring peace in the household, being around people who agree with what you say all the time can severely narrow your thought process, which ultimately leads to more confirmation bias.

From the people you trust, find someone who is logical and intuitive, and make them argue against your decision. Ask them to find out points against your choice, or facts that support a decision different from yours.

However, make sure you actually pay attention to what they have to say and consider it thoroughly instead of arguing back to prove your point.

Make sure you are honest with yourself

Before starting to research about whether you should invest in something or sell something, ask yourself, do you really want to?

If you have your answer, talk to people about what you are considering! Don’t ask them leading questions that they will just nod to, engage them in active conversation. And please, make sure you are actually listening.

Things you Should Know Before you Apply for a Personal Loan

personal loan

Dealing with lenders is not easy. Especially if you are applying for a loan, there are MANY things you have to know beforehand.

If this is the first time you are going to apply for a personal loan, there are a few things you should keep in mind. The first and most important thing you should do is consider your credit score.

Your credit score is the value generated by credit reporting agencies based on your credit report. Factors such as your payment history, number and type of current loans (whether they are revolving or non-revolving), debt to credit available ratio affect your credit score the most.

Before you start the process to even talk about a loan with a lender, make sure you can trust the institution.

There are many fraud lenders these days who might use your information to commit identity theft. Especially if you are thinking to apply for a personal loan online, you HAVE to make sure the website is legitimate.

Otherwise, you might basically hand over your information to someone who would be more than happy to flush your credit score down the drain! So, if you want to get a guideline about what you should do, read on.

· Check your credit report

Before a lender approves your loan, your credit report will be the first thing they check- which is why you should review it first!

Your credit decides whether or not you can be trusted with a loan, or how risky you are as a customer. It also dictates how much interest you will have to pay as people with a bad credit report will have to pay higher interest (since they already have a bad record and are deemed risky).

Start by reviewing your credit score. If your score looks weird to you, make sure you check your reports carefully. If you find errors, get them corrected as soon as possible.

· Look for local options or apply online

The first places you should look for a loan is a local lender that is nearby you.

Taking a loan involves multiple trips to the lender; hence choosing one that is far away from you will be pretty inconvenient. Start by collecting details about the banks available and what their requirements are for a personal loan.

Most of the information you need will be available on their websites or brochures. If you have more questions to ask, you should talk to their loan officer over the phone or even in person. Don’t keep questions unanswered.

If you want things to be even more convenient, you could apply for a personal loan online.

· Research and compare

If you think looking at one lender is enough for you to decide whether or not you should take a loan, you are going to make a huge mistake.

Be sure to look into multiple lenders and compare their rates. Also find out all the terms and conditions of the loans they offer, whether they have some hidden charges or not.

Moreover, make sure you know the consequences of failing payments or becoming default. Even though you will obviously be trying to make your payments on time, some lenders have major repercussions for delays in payment.

Finally, only apply for the loan(s) that matches your requirements and is ensured to be accepted. Every loan application you make will negatively affect your credit score, so try not to apply for loans that you know you will not receive.

· Collect the paperwork and information that you will have to provide

Whenever you apply for a loan, you have to provide certain information about yourself.

Such information includes your monthly or annual income as they need to know your debt to income ratio. They will also require information about your expenditures, the number of dependents, residential status (whether you live in your own apartment or in a rented flat), name and address of your employer and how long you have worked for them.

Therefore, preparing the paperwork of this information beforehand means you will be able to submit them the moment they are asked for, hence reducing delay.

Even though dealing with lenders might seem like a scary task in the beginning, it will become a piece of cake for you if you follow these guidelines! Applying for a personal loan in Mombo is pretty easy. We have an app for it and the application process is like a walk in the park. Mombo SACCO offers loans of up to 5 times ones savings, loans at 12% per annum, interest on savings at 6% per annum withdrawable twice annually, annual dividends on one’s share capital, all processes are digital no paperwork. Download our app to know more.

3 Hacks to Bad Credit Loans

3 hacks to bad credit loans

Your credit score is kind of like oxygen, you only feel its importance when you need money. But it’s not sufficient to get you a feasible loan!

As much as I hate to acknowledge it, our credit score basically dictates what we can and can’t do in life.

For example, that new house you want to buy? You probably cannot do so unless you have a credit good enough to get you a low-interest loan. Or that once-in-a-lifetime trip to visit your grandparents? You can’t fund it without a loan either.

Every small delay you make in paying your utility bills or every time you max out your credit card limit, you are leaving a dent on your credit record. And every time you apply for a loan, you are pulling your score down. On the bright side, the dents are not permanent.

If you stay punctual in making your scheduled payments and maintain discipline in shopping, your credit records and score will eventually improve. However, fixing a bad credit record takes years of time and sometimes, we don’t have that much of time in our hands.

Sometimes, a difference of 30-40 in credit score becomes the obstacle in your path of getting a payable loan. For example, the bank might provide a loan at 10% interest rate if your credit score is 650, but since you have 615, you will get a loan at a rate of 20%. That 10% might be too much to pay because of your limited income.

If you are in a similar situation, let me tell you that you are NOT doomed.

There are a few hacks which you can use to boost your credit score a bit. Even though you’ll not be able to push it up by hundreds of points (which can only be done after years of trying) you WILL be able to increase it to a point at which you can get that good loan.

To see the effects of these hacks, you will still have to wait a few months. No hack can increase your score within days. More importantly, the change will not be permanent as you have to make sure you are maintaining it.

Nonetheless, it is still better than waiting years to see an actual change in your credit score.

Tricks to improve your bad credit quickly:

Ask for an increase in credit limit

One of the main things that affect your credit score is your credit cards.

As you know, credit cards come with a limit up to which you can spend without having to pay back right away. If you ask for an increase in your credit card limit, it basically means you can spend more money on credit.

However, this does not mean you should ACTUALLY spend the extra limit. If you can show the bank you spent Ksh.300,000 out of your Ksh.500,000, it means you are not a spendthrift or a risky customer for them.

On the other hand, if you spend all Ksh.300,000 of a Ksh.300,000 limit, it signifies that you kept spending till your card was maxed out, which is a big no-no for banks.

Consolidate your loans

If you have multiple credit cards, it means you have to pay multiple bills too. All these bills include their own interests and that means you have to pay a lot more than what you took!

Instead of doing that, you should take one personal loan with which you pay off all your credit card debt. This greatly decreases the amount of interest you have to pay as you will only pay the interest on your personal loan, while also improving your credit card status on your credit report.

Moreover, a personal loan is non-revolving debt, which will also improve your credit score as after some time it won’t exist anymore.

Try “debt-snowball”

This is not a hack in technical terms, but it’s definitely a good practice which motivates you to clear your debts on time.

Basically, make a list of all your debts, in an order of smallest to biggest. While you keep paying the usual installments, use any extra money you get to clear a loan. Since you will be starting with the smallest one first, it will get cleared easily. Then cut it off your list.

As you keep cutting off debts, you will be so motivated to pay off your loans that you won’t have any left soon! If you try these hacks, you should see a change in your credit score within a few months. Hope this works out for you!

Why do you need to open a savings account now?

why you need to open saving account

As much as we believe the phrase “Money doesn’t buy happiness”, we all know that money is probably one of the, if not most, important thing in our lives.

For the first part of our lives, we depend on our parents for everything we need. We are their responsibility till we pass college, after which we are on our own. All alone in the big, cruel world, we finally realize how important money actually is.

The biggest problem most people face is that they are broke. So, if you’re a middle-aged or old person, don’t you think it would have been better if you had saved some money when you were in college?

Or, if you’re someone who still has not graduated college, do you want to go into a life where everything is so uncertain? Don’t you think it would be easier for you if you have some money in your pockets?

Personally, I know how hard it is to start from scratch. And this is why I suggest everyone open a savings account as early as they can. Yes, I mean as early as starting college.

Having a financial backup, even if it’s just a small one, can boost your confidence greatly. It can serve as a cushion for your fall if you, unfortunately, face one.

You might think you will have nothing to save even if you do open a savings account, but there are many reasons which will prove otherwise. Here are a few:

Reasons to open a savings account:

· Helps you learn how to save and become pennywise

When we’re young, we don’t realize how important saving money really is. Since most students have no job or very low income which makes them think they will not be able to save, they don’t even try to.

Opening a savings account requires you to put in an initial amount of money, and you also have to maintain an account balance above a certain amount at all times. Some banks even require regular deposits to keep an account active.

This means, even though you are still surviving, you are actually saving some! Even if the amounts you deposit are small, it will eventually amount to something bigger.

· Emergencies

Emergencies are never predicted, but they are usually around the corner. You might need a big amount of money within a short time, and that’s where a savings account can help.

Let it be because you need to buy a piece of equipment crucial to your education, such as a new laptop, or, because you need to fly home on an urgent basis, a savings account can meet up the lack of fund.

This means you will not have to take a loan, therefore no worrying about paying it back with interest. Your own money will be there to save you.

· Special perks for students

For banks, students are a life-long investment. The earlier they can make you depend on them, the more money they can make with your savings.

Hence, banks provide many extra services to students. A major advantage is that many banks often offer more interest to students, which means for the same amount of money, you will be getting back an amount greater than an older person!

Other services include free of charge debit cards, on-campus ATMs. These are quite useful too as many times urgent withdrawals. You might even get free mugs or keychains!

· Prepares you for the adult life

Even though you might be “technically” an adult in college, you cannot consider yourself as one until you are fending for yourself.

A big part of your “adult” life will be spent dealing with banks, this means you will have to know how to write a check, deposit/withdraw money, keep track of your accounts and what not. Even though these are not rocket science, they might seem complicated if you have no past experience of dealing with banks.

Moreover, you’ll ultimately be opening a savings account, and it should be sooner rather than later. Before you know it, you will be needing money to buy a house or fund your wedding, so the more interest you can save up by then, the better.

Opening a savings account has ZERO demerits, so why not open one as you can!? To manage a savings account, download the MOMBO App, available for both Android and iOS and take advantage of facilities we have availed for you.

Short-term loans: Dos and Don’ts

short term loan

When you are running a business, the profit and opportunity scenarios don’t always remain constant. I, for one, know how opportunities have a tendency to spring up just when you are lagging behind in the revenue sector.

Even if you are not having a bad time with sales, some juicy, amazing or once-in-a-lifetime opportunities might require funds that you do not have at the moment.

So what do you do then? Take a huge loan that will take years to pay off?

The answer is no, as Short-term loans are now widely available. There are many instances in which you should or shouldn’t opt for a short-term loan; here are a few of both:

When should you take a short-term loan?

If your business depends on the season or events that occur in a fixed time of the year

Many businesses are “season-specific”, and these businessmen KNOW when their profit will reach its highest peak.

For example, if you have an ice cream shop, you should take extra measures before summer begins to make sure that your refrigerator and coolers work properly, so that your service is top notch and you make a ton of profit.

This is where short-term loans come into play. Rather than taking an unnecessary long-term loan, why not take a short one and pay it off when the huge profit starts coming in?

If your products are small dollar items but sold in high volumes

If your business involves small dollar products, it is usual for you to not have large cash reserves. But, your advantage is that these products are sold more often and hence have a more reliable flow of income.

As short-term loans require payments on a frequent, regular basis, you can make great use of short-term loans.

If you do not have a big credit

Getting a long-term loan becomes very hard if you do not have a good credit score.

I have seen many people give up on their dream business just because they could not get a loan, but it is hard to have credit when your business has not fully flourished yet!

For people in such situations, short-term loans can be the perfect solution. This is because, as they are promising to pay back the money very soon, lenders are more likely to trust borrowers with small credit.

If you can show an earnings history

Short term loans depend on your future cash flow, and on the fact that you will earn enough money to pay back the loan in time.

As they do not require big credit, you will have to show them an earning history that will guarantee them your business was able to make that much of profit last year, hence you should be able to pay back the loan this year.

When should you NOT take short-term loans?

If you do not want the responsibility of making repayments yourself

To prove your genuine commitment to pay back the loan, the lender may ask you to make a personal guarantee.

This means, if your company fails to repay the debt, you will pay out of your own pocket. I suggest you consider all the odds before you sign on these conditions as it will risk your personal property too.

If you do not want to pay higher interests

One downside of short-term loans is that you will have to pay higher interest as you are not holding on to the money for a long time.

If you take a large loan for a short-term, the interest might be too high for you to pay back. Thoroughly consider this factor before making your decision!

If you did not make a cash cushion

Short term loans require regular payments, so make sure you have a cash cushion saved up! If something goes wrong and you are not able to make the estimated profit, your cash cushion will ensure that you do not fail your payment.

Otherwise, the higher interest might eventually become too high for you to cope with.

If you do not have reliable customers

Since you will be needing a reliable cash flow to take a short-term loan, it might be unwise to do so if your customers are not stable or reliable. If your business deals with people who pay up late, it is best to avoid short-term loans.

In my opinion, short-term loans are great options for businesses who do not want to take the burden of carrying a long loan. Either way, make sure you do your research before taking one!

I Need A Loan But I Have Bad Credit, Who Will Give Me A Loan?

who will give me a loan

Being an adult in the 21st century is hard, especially with the Great recession’s effect being experienced by all. If you are someone with a poor or yet non-existent credit score, you have probably asked yourself the above question already.

In all honesty, getting a personal loan when you have bad credit is quite difficult. There is no way I can sugarcoat the truth for you since it is a fact that lenders will see you as a high-risk borrower.

Sometimes, the risk might be too high for them to take and that is where the problem starts. However, don’t lose all your hopes yet.

If you are in an “I need a loan but I have bad credit” situation, there are still some ways through which you can get a loan. I know how demoralizing it can be when the big banks turn you down, but they are not the only option for you.

However, before I explain the 5 ways to get a loan when you are in an “I need a loan but I have bad credit” state, keep in mind that these are options that you should use as your last resorts.

You should always try to work towards having a good credit score, and if you are lucky enough to have one, make sure you stay disciplined enough to maintain it!

Without further ado, let’s talk about how you can get out of the depressing “I need a loan but I have bad credit” phase:

5 ways to get a loan when you have bad credit:

· Ask a friend or relative for a loan

When I was going through a bad time, my only backup was my family. I had asked my uncle to give me a loan which I promised to pay back within 5 months and he agreed. Those 5 months were the turning point in my life and I managed to make things right.

Therefore, asking a friend or family can be a valid option, as they are the people who are most empathetic and understanding towards us. However, make sure you can pay it back! Otherwise, you will end up destroying a personal relationship.

· Ask someone to co-sign a loan with you

Sometimes, the people around you might be unable to give you a loan due to lack of cash. However, if someone has a good credit score, he might be able to help you.

If you can convince that person that you will pay the installments on time, and if he trusts you enough, he can co-sign a loan with you.

This means the lender will then set the terms of the loan based on the person with good credit, and both of you will be held equally responsible for the loan. The loan will be recorded on both your credit scores.

So, if you fall behind on payments you will be severely damaging your cosigner’s credit score. Make sure you don’t do that!

· Visit Saccos

Just like banks, Saccos offer loans too. However, unlike banks, they do not do it for profit.

Saccos are owned and run by a group of similar people, such as citizens of the same neighborhood or people of the same profession. Therefore, if you can find a credit union to which you can link yourself to somehow, you might get a loan.

· Try out person-to-person lending

Otherwise known as peer-to-peer lending, this type of loans are online-based. Instead of applying to an institution, you will basically be interacting with a person directly.

The procedure is quite simple: the borrowers have to post a loan listing that consists of how much money they need and why they need it for. The lenders judge the lists based on needs and credit score and select which one they want to fund, but they might overlook your score for a genuine, good-enough cause.

· Put your home on the line

In my opinion, this should be the very last thing you could do.

By using your equity in your home, you can apply for a home equity loan. You are basically giving your home as collateral, which means they will have the right to cease your home if you fall behind on payments.

6 Reasons to take personal loans online

6 reason to take personal loan

Personal loans are already quite the blessing, especially for people who do not have collateral to show. Believe me, I for one, know how hard it can be when you can’t take a loan due to a lack of collateral.

However, getting a personal loan is no easy task either. It includes multiple trips to numerous banks, repeating the same conversation with several lenders: “My credit score is this, I need a loan because I want to do that”, basically the same thing over and over again.

Most importantly, there is no guarantee that even after all this hassle, you will definitely get the loan! This can be very disappointing if you REALLY need the money!

Sometimes you need the money on such a short notice that you KNOW you won’t get a loan by then. So what do you do then? Give up?

Of course not! This is why many people are instead taking personal loans online. In a time where our lives revolve around technology, why not depend on it for taking loans too?

Many people have decided to avail the opportunity of taking personal loans online, and there are quite a few reasons to do so. Let’s look at a few:

Pros of taking personal loans online:

· Suitable for emergencies

Emergencies never come announced, and they often leave you helpless.

Traditional loans often take weeks or at least days to get processed and accepted, hence if you need money for something within the day, they are really not feasible.

Instead, you can apply online and get the money within an hour! Moreover, there is no need to clarify why you need the money either, and that used to be quite a hassle with traditional loans.

· Very convenient

Traditional loans require you to make multiple trips to the bank. This can be very inconvenient when even the nearest branch of the bank(s) is far away from where you live.

Applying for a loan online means you can do it from the ease and comfort of your own home. There is no need to get all dressed up and have your game face on to convince the banker, all you need to do is fill up the form and submit!

· More chances of getting the loan

Nowadays, getting a loan approved by a traditional bank is a very daunting procedure. As they do rigorous background checks (since they are also under strict observation which makes sure they are always following the rules), loans are often rejected.

With online personal loans, you do not have to worry about your loan not getting accepted! Even if your credit score is bad, your loan will still be accepted by one person or the other.

· Numerous options

You might be thinking, “Hey, there are many options when it comes to traditional banks too.” And I agree, there are.

But the difference lies in the fact that when it comes to banks, you have to visit all of them individually. You will only get to know about the terms and conditions AFTER you start discussing with them. Many times, you will understand that you do not want to apply to the bank in the first minute, but you will still have to sit through that whole boring conversation.

Therefore, analyzing and applying for loans online means you can easily compare the rates and terms, hence making your decision becomes much easier and faster.

· Available 24/7

There are many emergencies which occur in odd hours of the day, sometimes even at midnight. Or, you might need to take a loan on a holiday when banks are closed.

Whilst banks have the limitation of having office hours, online loans do not. You can apply for the loan at any time you need, and get the money in your hands in less than an hour.

· Efficient and time-saving

Anything that can be done online is bound to be efficient, and getting a loan is not any different either.

Unlike traditional loans, you do not have to wait in long queues or wait days to get your loan approved. Pre-approval takes a few minutes depending on your internet speed.

In my opinion, taking personal loans online is a very good option for those who are looking for one. Be sure to check out the terms and conditions before you finalize things!

Should You Be Taking Low-Interest Personal Loans?

taking low interest personel loans

Over the course of life, we face many situations in which we need a big sum of money abruptly, but are unable to get a loan due to a lack of collateral. I had been in this circumstance when I suddenly decided to get married, but luckily my good credit score saved me.

If you are in a similar situation and also have stellar credit, Low-interest personal loans might be the perfect thing for you.

So, how do these differ from normal personal loans?

Just like personal loans, low-interest personal loans do not require any proof which promises that you will pay back the loan i.e.: no collateral needed.

However, unlike personal loans that have very high-interest rates which are meant to compensate for the risk that lenders take when lending someone money without concrete evidence, these have a much lower APR.

Lenders take the risk of providing this facility as they require very strict credit underwriting.

So, if you can show that you have a really good credit score (something above 750 is amazing!), which basically signifies that you will pay the installments on or before due dates and will never fall behind, or, if you have a co-signer with top-notch credit, you’re eligible.

Things you should know about Low-interest personal loans:

When or for what reasons should you take one?

If you need urgent money for once-in-a-lifetime occasions, such as your wedding or renovating your dream house, you should definitely consider it.

Or, if it’s an opportunity that you should DEFINITELY avail, such as higher education offers or a business that requires an investment but is bound to blossom eventually, you are a good candidate for such type of loans.

If you want to pay off your credit card debt with this loan, that is a good decision too. It might actually reduce the overall amount you pay back.

However, do NOT take this loan to pay off other loans. You are just going to increase the amount you are needed to pay back (old loan’s principal+ interest+ new loan’s interest) and such decisions are never wise.

Also, do not take a loan for silly reasons. Indulging in expensive, unnecessary shopping is never a good decision, and taking a loan for it should not even be considered!

And lastly, if you are unsure about how you are going to pay back the loan, don’t take it. Loans are big responsibilities that should only be taken when you are certain about being able to pay your instalments on time. As hard as times might get, taking a loan to fix things and not being able to pay it back will only make things much worse.

Pros:

· Instant cash that will meet your needs on a sudden basis. You do not have to worry about managing collateral to show to the bank.

· Lower interest rates than personal loans, which means lower monthly payments. As long as you make your payments on time, you are good to go.

· Consolidating your credit card debt in one loan lowers the total amount you have to pay back.

Cons:

· Interest rates are still higher than loans that were taken by showing collateral. If you fail to make any payment, you might put yourself in a worse situation than you were in the first place.

· As you are not giving any collateral, the lender might become aggressive if you start delaying in payment. Since they are not holding anything as a guarantee, they might resort to placing liens on your personal property until you can pay them back.

Important things to keep in mind:

· When taking a loan, always make sure you are applying for the exact amount that you will need. Lenders might try to sweet-talk you into taking a bigger amount, hence increasing the chance of you failing payments, after which they will try to cease your personal property!

· Make sure you get to know the total amount repayable (TAR) before deciding. A low APR does not mean a low TAR.

Finally, make sure you judge your current circumstances before you decide to take the loan. Are your credit card payments cleared? How good is your credit score? Are you clear on the terms and conditions of the loan?

If you have positive answers to all these questions and more, feel free to grab that amazing opportunity!