Bad credit online loans

Online lending is becoming increasingly popular in the Philippines each year. The share of loans processed online has exceeded 50% of the total number of loans, and this percentage continues to grow. The majority of applications are for short-term online loans — microloans that allow borrowers to get money instantly.

The reason for the popularity of bad credit online loans lies in the convenience of the process. Everything is done online, meaning users can apply anytime and from anywhere, as long as they have internet access. There’s no need to adjust to bank office hours, wait for holidays to end, or waste time traveling to the lender. Furthermore, you can find several offers from different lenders online, compare terms, and choose the best option — all within 10 to 20 minutes.

However, online lending has its downsides: interest rates are usually slightly (or sometimes significantly) higher compared to traditional consumer loans. Moreover, there’s a risk of encountering scammers who pose as lenders to steal personal information and misuse it for fraudulent purposes.

Another important factor is that online lending is primarily represented by microloans — with all the associated consequences.

Contents:

1. Advantages and disadvantages of microloans
2. How to get an online loan
3. How to choose a financial institution
4. Choose the company with the nest terms

Advantages and disadvantages of microloans

Microloans are quite popular in our country for a variety of reasons:

1. Financial institutions have very low requirements. Unlike banks, which check borrowers’ income, scrutinize credit history before approving a loan, and often require guarantors, microfinance organizations (MFIs) approve loans for bad credit in 95-98% of cases. If you need a loan with a bad credit history, a microloan is the right choice. The requirements are really minimal: you need to be an adult (the upper age limit varies by company) and a citizen of the Philippines. The potential borrower only needs to provide an ID (a photo or scan) and a second document, then fill out an application form. That’s usually all it takes to get the required amount for a short term.
2. In most cases, financial organizations offer online loans. As we mentioned earlier, this approach has many advantages. Borrowers find it very convenient to take loans online — it saves a lot of time, effort, and stress. And if you choose the right organization, all the disadvantages of online lending can be minimized: by selecting a company with a flawless reputation, you protect yourself from fraudsters while also being able to choose a lender with the most favorable terms.
3. A microloan is a small amount of money given for a short period. If you need 5,000 to 10,000 pesos before your next paycheck, a microloan is the best option. No one wants to go to the bank, gather a pile of documents, and bring in guarantors for such a small amount. It’s much easier to turn to a financial organization, fill out an application, and have the money on your card within minutes.
4. A wide range of additional services that make fast bad credit loans in the Philippines more attractive. Due to the high competition, microfinance companies are forced to stand out from their competitors by attracting new borrowers and increasing the loyalty of existing ones in various ways. Many financial companies are willing to offer the first loan to a new customer at 0% interest — the advantage for the borrower is clear, and for the lender, this is an inexpensive and effective advertisement for their services (in the future, if the customer needs money again, they are likely to return to the same company). Many lenders also offer loan extension services — if the borrower realizes they won’t be able to make the payment on time, they can pay the interest (sometimes a fee for the service), and the loan term is extended by a few more days or weeks. Many MFIs also offer credit history repair services and frequently run promotions like “Refer a Friend,” contests, discounts, and so on.

Despite the obvious advantages, there are some downsides. One of the main drawbacks is the high cost of borrowing. Yes, if we’re talking about small amounts for a short term, the overpayment is minimal, but the interest rates for regular consumer loans are much lower. Another disadvantage is the high penalties for late payments: if you don’t repay the loan, the debt will grow until it doubles the original loan amount. However, this drawback is only relevant for irresponsible borrowers: don’t take out a loan if you’re not sure you can repay it on time.

How to get an online loan

The process of obtaining a loan with a bad credit history is as simple and straightforward as possible — this is one of the main advantages of microloans.

1. Choose a financial company that offers the most favorable terms from a wide range of options. You don’t need to spend hours searching through the depths of the internet to find good deals. Our website features a selection of the best — trusted, licensed, and official companies. Each lender’s card provides brief information about their terms: borrower requirements, minimum and maximum loan amounts, loan duration, interest rates, and any additional options. If you like the terms of a particular lender, simply follow the link in the card to their official website.
2. Study the information provided on the official website — the borrower requirements, offered loan terms, and any additional services and options available. It’s also worth taking the time to read reviews about the chosen company online, as they can provide useful insights. For instance, if you’ve had overdue payments in the past, pay attention to whether the selected financial company offers loans without checking credit history. Be on the lookout for promotions — many lenders are willing to approve interest-free bad credit personal loans online for new clients, but the amount will be small, as will the loan term. If you have any questions about the terms, don’t hesitate to ask the company’s representatives: most websites have a feedback form that allows you to easily contact a manager.
3. Carefully reviewed the lender’s website and satisfied with the terms? Then you can proceed with submitting your application. First, we recommend using the online calculator available on each website. You select the amount you need and the term by which you plan to repay the money. The online calculator will automatically calculate the amount you’ll need to repay on the last day of the loan, including interest. Make sure you’ll be able to meet your credit obligations; otherwise, the debt will increase not only by the interest amount but also by the penalty fees. Now, register on the website, create a login and password for your personal account — in this account, you’ll find all the information about your no credit check loans, both closed and current. You can also check the available limit for future loans — typically, with each successfully repaid microloan, your limit increases (and sometimes the interest rate decreases).
4. Fill out the application form. This step is only necessary when applying for your first loan. The form usually asks for several types of information — personal details, your financial situation (where you work, your salary, any additional income, the size of your family, whether you have dependents, etc.). If you’re unsure how to answer any questions, don’t worry — after you submit the form, a manager will call you to clarify unclear points. At this stage, you can discuss any problematic issues and fill them in such a way that maximizes your chances of loan approval. After speaking with the manager, you’ll need to wait a bit while either an employee or an automated system checks your application.
5. If your loan request is approved — and the likelihood of approval is between 95-98% — you’ll receive an SMS notification with information confirming the approval. You then need to confirm your application by sending a reply message. That’s it, the approved amount will be transferred to your bank card or sent through another method you chose. You can spend the money on anything you like, as the lender does not monitor this. The only thing the financial organization expects from you is timely repayment of the loan.

As you can see, the process of obtaining a microloan is as simple, fast, and convenient as possible. That is, of course, if the borrower chooses a reliable, trusted microfinance company, carefully reads the lender’s terms and conditions, and thoroughly evaluates their financial capabilities.

How to choose a financial institution

The competition among MFIs is not just big — it’s enormous. So how do you choose a lender that will offer you the best terms?

The most important thing to look for when choosing a microfinance organization is the presence of a license. This ensures that you, as a borrower, are protected: you can be confident that you won’t be charged excessive interest, penalties, and so on. The problem is, many companies have licenses — yes, this helps you filter out those that shouldn’t be trusted, but it still leaves you with a difficult choice among the remaining ones. How can you simplify this process? You can read recommendations from financial experts or go through reviews from people online — it’s better to check reviews on independent sites, as they’re more likely to be genuine. And in any case, choose companies that have been in the market for a long time and have built a reputation as reliable and honest lenders.

Besides reputation, of course, you should also pay attention to the terms offered by the lender:

1. Borrower requirements. Typically, the requirements are minimal: you need to be an adult Filipino citizen. If you have a poor credit history, you can look for reputable or new MFIs that don’t check credit history — there are many of these nowadays. In fact, many companies present the absence of a credit history check as an advantage and are willing to work with borrowers who have had delinquencies in the past, even helping them improve their credit history. However, sometimes there are nuances: some financial organizations verify the information in your application, request your work address and phone number, or ask for a second or third document to confirm your identity. The upper age limit also varies by company: some lenders will issue online loans for poor credit history to borrowers up to 60 years old, while others are happy to work with retirees.
2. Key loan terms. What’s important? First, the amount they are willing to lend. Usually, if it’s your first loan with a particular lender, you shouldn’t expect a large sum. With each subsequent loan from the same lender, the limit may increase. The second key factor is the loan term. It typically ranges from a few days to several weeks, though in some cases, financial companies offer loans for several months. If the loan is for a short period, the full amount, including interest, is repaid in one payment at the end of the term. For longer terms, the loan is repaid through regular payments according to a pre-calculated schedule. Lastly, the third factor is the interest rate. Some lenders reduce the interest rate for loyal customers: if you repay the first loan on time, you can take the next one under better conditions.
3. Additional services offered by the lender. To attract and retain as many clients as possible, MFIs introduce various additional services that make working with them more convenient and beneficial. Some offer easy bad credit loans to borrowers with poor credit histories, helping them improve their credit score: borrow small amounts, repay on time, and your credit history will improve. If an interest-free period is offered, we recommend carefully reading the agreement. You’ll likely find that the interest-free terms apply only if you repay the loan on time. If you miss the payment deadline for any reason, interest will accrue from the first day of the loan, plus penalty fees. Another useful option is loan extension (prolongation). Nowadays, many companies allow you to extend the loan term: simply pay the interest, and the loan term will be extended. However, for most lenders, this function has become a paid service: you need to not only pay the interest but also pay for the extension itself. It’s best not to abuse this option: while you maintain a good credit history, you end up paying extra in interest.

In the internet age, it’s easy to find information about any company — both official data and opinions from experts (in our case, financial experts) and ordinary users. It’s worth spending a little time to filter out the best offers, compare them, and choose the one that suits your criteria, needs, and requests.

What to do if you realize you can’t repay a microloan on time

Surely, none of us think about the possibility of things going off-script when taking out a loan, and that we might not be able to repay it on time. However, even if you’re confident that everything will go according to plan, we strongly recommend considering a scenario where you might not be able to pay back the loan on time. It’s important to think this through at the stage of choosing a financial company — opt for lenders who are willing to offer their clients an extension option when needed. It’s not as important whether this function is paid or not; what matters is that it’s available — this way, you can feel more at ease in emergency situations, knowing that you have time and flexibility to maneuver financially.

Another feature that can save you when you can’t make loan payments is insurance. Many clients, when taking out a microloan, confidently refuse insurance, considering it a waste of money. But in reality, in many situations, this insurance can be a lifesaver — so before unchecking the insurance option in the agreement, carefully read the terms. Yes, not all insurance products are valuable and useful, but in some cases, they can be quite beneficial. Consider whether you need it: if you have even the slightest doubt about being able to repay the microloan on time, it’s worth getting insurance.

What if you didn’t plan for a worst-case scenario when taking out a microloan, and now it’s happening? One of the key rules is not to avoid contact with the company representatives. If you intend to repay the loan but are currently facing financial difficulties, you should contact the lender and explain the situation. No lender is interested in immediately selling your debt to collectors — firstly, doing so results in a loss of money (your debt is sold for less than its value), and secondly, they lose a client (you are unlikely to return to that company if they sell your debt to collectors at the first sign of financial trouble). Of course, we’re not talking about chronic non-payers here, but about people who face one-off financial difficulties. You simply need to communicate with the lender and set a timeframe in which you’ll be able to repay the debt.

Keep in mind that for every new day of delay, you’ll continue to accrue interest, and there may be additional penalties as well, which will cause your debt to grow even faster. When speaking with a company representative, be honest and upfront — if you can make the payment in a week, say so clearly. The specialist will put that date into the schedule, and most likely, you won’t be contacted again until the specified date. However, if you keep promising that you’ll pay the debt tomorrow and fail to do so, the likelihood of your loan being handed over to collectors will increase significantly.

Choose the company with the nest terms

Our website offers a selection of financial institutions with the best terms. You’ll find only licensed MFIs here, ensuring that your rights as a borrower will be fully protected when working with these lenders. Define the terms that are important to you — whether it’s the loan amount you wish to receive or, for example, the option to get an interest-free loan — and look for a company that meets your requirements as closely as possible. It’s easy: in the company cards, we’ve highlighted the main characteristics, and all you need to do is choose the best terms and visit the website of the company you like to submit your loan application.