There are plenty of reasons why Filipinos apply for personal loans. Some include paying tuition fees, unexpected medical expenses, planning to build a business, setting up investments, house renovations, and auto improvements.
Whatever your reason is, getting a personal loan comes with great responsibility. And if you plan to apply for a loan again, this article will help you think about why applying for the same lending institution is much better.
1. Abrupt Pre-screening Procedures and Pre-approvals
As part of the pre-screening procedures, banks and lending institutions conduct their KYC (Know Your Customer) procedures for their clients and customers.
Since you already have an existing record from the same Lender, you might expect faster approval on your second personal loan. In short, it will be more relaxed than your first-time loan application. This is also helpful, especially if you need the cash immediately.
2. You Can Arrange for Better Terms and Conditions
Banks and Lending institutions provide special programs for their existing clients. You can sometimes arrange for better terms and conditions. You can also negotiate for a much lower interest depending on your credit standing.
If you think your credit score is good enough, you can inform your point of contact so they can relay it to the management.
3. Will Yield a Higher Loan Limit
If you did a great job paying all the amortizations on your first loan, you can also take advantage of or increase your credit limit. Depending on the lending institution, you can request to improve your credit limit, or they can also offer it to you automatically.
Lenders assess it based on your previous credit standing and income or paying capability.
4. It’s an Opportunity to Boost Your Credit Score
Loan renewals are opportunities to boost your credit score.
If you have a great credit score, processing of documents, higher loan limit, faster loan processing, and better rates are on your way. You will be approved quickly, and you can use the cash immediately, no matter where you use it.
Applying to a similar lender on your second loan has plenty of benefits. If your lender is good enough, consider reapplying.