Crucial Things to Consider Before Applying For a Payday Loan

Payday loans, also known as salary loans, are meant to cater to expenses that people can’t manage with their existing salary. To put it bluntly, they are used to cover shortfalls of money. Payday loans are often used on a short-term basis, helping people meet their ongoing emergencies without the need of selling properties. Many people consider this loan as the last resort.

Ready to take the payday loan? It is possible to choose the best loan app Philippines that can save you internet traffic. But before you make an application, here is a list of key things to consider to ensure your salary loan is effective in the Philippines.

Know the Purpose of Your Loan

Understanding the purpose of your loan is the first thing that should come to your mind. Payday loans aren’t designed for all-time usage. And borrowers should not consider them as an ongoing credit facility. These are quick money specifically meant for short-term needs.

Short-term credit tends to have high-interest rates. Failing to recover it can become more expensive than you can imagine.

How Much Money Do You Want?

Calculate the final amount of money you need before deciding on applying for the loan. Don’t borrow extra than the amount you want. This will increase the amount of interest you will pay back.

Understand the Terms and Conditions

Each time you need a loan, it is vital to understand the terms and conditions. Every company has extensive rules that must be followed. Also, they have their own terms and conditions that borrowers need to feel comfortable with. So, read carefully before you agree.

Is Your Lender Legally Certified?

While a lot of stress comes with being in debt, make sure you borrow from a legit creditor. Always check if the provider is legally registered and recognized by the relevant authority. Any organization giving loans but not registered is operating illegally.

How Much You Can Afford to Pay Back

Default on short-term loans can lead to additional charges and heavy penalties. In the worst cases, legal action can be taken. Ensure you have a solid plan for any credit repayment. Most lenders accept repayments every month. But if you can manage to clear on time, your credit score is likely to increase.

Do You Meet the Requirements?

To qualify for a payday loan, you need to fulfill specific requirements. While this differs from one lender to another, here are the most common requirements:

  • Full-time Philippine resident
  • A valid Philippine bank account
  • A valid Philippine mobile number
  • A valid email address

Best Mobile Loan Apps in the Philippines

In this section, we have picked the best mobile apps with better interest rates in the Philippines. These apps have gained a positive reputation, offering convenience and maximum choice for discerning customers.

i.                   Digido Finance Corporation-Best free loan app

Digido takes pride as the leading free loan app in the Philippines. Over the past couple of years, the organization has strived to offer easy and quick cash-lending services to help customers solve their problems.

There is no doubt that Digido offers a 95% chance of loan approval. The organization also provides excellent terms and conditions that every borrower can accomplish. At Digido, there are no hidden fees. The company focuses on specific payment details without pretension. And security is nothing short of excellence.

Digido sits above the bar when it comes to interest rates. The company offers a maximum of 143% annual interest rate. This might be higher than conventional banks, but it’s competitive with other organizations.

ii.                 MoneyCat app

MoneyCat is an ideal choice for financial consumers. The mobile application allows users to receive a loan for 90-180 days. MoneyCat doesn’t require proof of income.

This organization focuses to satisfy the demand of the Philippines to the maximum. It has expanded modestly, developing new versions of apps that provide fast and secure online transactions. If you need quick cash, this might be the best option for you.


Payday loans are specifically designed to meet unexpected emergencies without taking a second job. So, never jump into agreements before considering the things above. That said, make sure you know the purpose of the loan, the requirements needed, and borrow from a legal credit provider.

Huynh Nguyen

Huynh Nguyen. I am an ordinary person with a passion for the internet. I am the man behind this organization. If you have any problems, just contact me at I will get back to you within 24 hours.

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