Friday, June 14, 2019

Taking the Right Steps in Applying for Self Employed Loans




Several years ago I attended a symposium about how to financially handle loans. They covered mostly the general aspect of acquiring loan; from company loans to housing loan. There they discussed the pros and cons of taking a loan while you are employed and also tackling self-employed loans. I must admit when I was new in the company I was working, my co-workers then where convincing other co-employees to file monetary loan from our social security provider, since I am new I didn't have the knowledge of the how's and what's of it, even they introduced it to me. My only knowledge about it is the possible high-interest a certain loan an incur. Years passed by the same topic about personal monetary loan has discussed, and I gave in, I was able to file a one-month salary loan under our social security provider, through our company's loan program. 

Honestly, the hesitations at first did set-in, that was literally the first loan I made since I started working. You may ask what made me do it? I need extra money for my parent's house. They needed extra funds for painting and some fixtures and that's where my loan sets-in, it did serve the purpose.

In the loan contract, I signed in with, a computed amount for payment will be deducted every payroll, the 15th and the 30th of the month, for two years. A percentage was computed for the interest and was added to the primary loan amount. Deductions were made in the payroll by my employee for the whole two years (24months). And after two years, I was able to finish the contract loan. Although, hesitations and some worries when applying for personal loans your overall finances should always be put into consideration. 

Loan programs vary from company's loan program scheme, you need to be equipped with the knowledge on what to apply and the need for this specific aid be used. In the scenario of a person borrowing money to friends and family is the customary way, whether this money will be used for emergency or personal use or sometimes for business use. Sometimes, due to the close relationship between the borrower and the lender verbal agreement suffice in such, but in a legal and more formal way, a written agreement is suggestive. This is to prevent future disagreement between family and friends which can and the possibility of this can happen. One good example is if the borrower couldn't make the promise of returning back the borrowed money on the promised date. You wouldn't want your name to be listed with bad credit

Credit score will determine how are you-you borrow money from an institution, this will define your debt standing, interest rating, and whether you will be eligible in the next time you apply for a loan.

Overall, when asking to borrow money make sure your capabilities to pay the amount. Do not put yourself in the debt and see to it that the money you are asking will be put in good use. 





18 comments:

  1. Indeed loans are helpful in having cash, especially during emergencies. Lets just be careful though, which type of loans we are comfortable with, considering interest rates and repayment scheme.

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    1. I totally agree, in the recent news there are a lot of loan companies online that offer quick application but those are tricky. I wouldn't suggest availing such quick loans, there are trusted loan companies.

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  2. I am always very careful about what loans I take out. I always worry that I'm screen my credit up. I definitely will look into this place and see how this loan could help me.

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  3. These are all great tips! I'm super careful when it comes to borrowing money. I make sure the interest rate is as low as I can get. Car and mortgage loans are the only loans I will even consider.

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  4. This is really interesting to read. It can be so hard to take anything out when you are self employed can't it? So good to know there are helping hands out there.

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  5. We try not to take out loans, but some are unavoidable, like our car, mortgage, and daughter's student loans. We are super careful about reading the fine print and making sure all of the terms will benefit us in the long run.

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  6. Being self employed is a challenge especially when it comes to borrowing money and having collateral. Thanks for the information

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  7. Taking out loans can be tricky, especially if you're self-employed. It is always a good idea to read the fine print and shop around.

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  8. Love all the step by step tips. Sometimes I really need tips like this, especially for me, that I don't know nothing about loans!

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  9. Yes I agree to this, that's why I am very careful when it comes to loans. Such a great message you've shared here.

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  10. Thank you for sharing this post on how to go about getting a loan when you are self employed. There are so many people who are self employed these days and might not know how to go about doing this.

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  11. We always try our best not to borrow money but it is just unavoidable sometimes especially during emergencies. Thank you for these tips!

    -Lynndee

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  12. Great lesson! I think both self-employed individuals and employees have to be more financial literate so they can grow their money more.

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  13. Such a huge help and information you've shared. I am really glad to noticed all about this. Thanks for sharing this with us!

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  14. I try really hard to not take out loans for anything. This is a great article for those who are self-employed!

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  15. Great advice! I always get the loan offers but turned them off because I don't really the money right now.

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  16. This are really great tips. It's important to be prepared for a big decision like this.

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  17. Loans. Babushka considers those a necessary evil. Glad you were able to secure the needed loan, and most importantly pay it off. BB2U

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