Buying the latest smartphone or appliance just got easier with Home Credit. With more than 700 partner retailers and over 3 million customers, Home Credit Philippines is one of the largest consumer financial companies in the country. Home Credit allows any Filipino of legal age to apply for non-collateral loans for the purchase of electronic devices and appliances, without the need for a credit card or bank account.
Even though applying for a Home Credit loan looks easy, there’s still no guarantee that your application will be approved. Just like any lending firm, Home Credit Philippines takes due diligence and investigation to ensure that its customers are capable of paying. What makes Home Credit different from other financing companies, however, is that it doesn’t require a collateral; you’ll only have to provide a valid ID.
In this guide, I will give you some tips and advice on how to apply for a Home Credit loan and to increase your chances of getting approved. These tips are partly based on my own personal experience in applying for Home Credit. Although I’ll try my best to share with you what I know based on my experience, I cannot guarantee that your application will be approved even if you follow this guide. The approval of your application is solely the discretion of the company.
Who Can Apply for Home Credit?
Anyone who meets all of these requirements can apply for a Home Credit loan:
- A Filipino citizen
- 18 to 68 years old
- Employed (at least 3 months), self-employed, businessman, pensioner or receiving regular remittance
Home Credit Requirements
On its website, Home Credit Philippines states that you only need to bring two (2) valid IDs. At least one ID must be a primary ID and at least one must contain your current address.
Primary IDs (at least 1 with address)
- Driver’s license
- PRC ID
- SSS or GSIS
- Voter’s ID
- Barangay certificate or clearance
- Bank account statement
- Certificate of employment
- Company ID
- NBI clearance
- Pag-IBIG/HDMF ID
- PhilHealth card
- Postal ID
- Remittance or salary slip
- TIN ID
- Utility bill (electricity/water/phone/mobile)
How to Apply for a Home Credit Loan
Bring 2 valid IDs and visit the partner store where you want to buy your electronic gadget or appliance. Approach the Home Credit sales agent and tell him or her that you want to avail of a Home Credit loan. Ask the agent how much you’ll have to pay as downpayment as well as your monthly installments. The downpayment is usually 30% of the total price.
The sales agent will personally “interview” you and ask for your personal details such as name, birthday, place of birth, home address, cellphone number, and source of income. Answer the questions as accurately and honestly as possible. The agent will enter your details on the computer.
If you are a freelancer like me, you can still apply. Tell the sales agent what kind of work you have and how much you earn per month.
Give your 2 valid IDs to the agent when requested. The agent will also ask for your SSS number and tax identification number (TIN).
The sales agent will then ask for four (4) personal references. They can be your friends or relatives, as long as you know each other personally.
You will then be asked to log in to your Facebook account. You don’t have to worry about this step since Home Credit will only have access to a few personal information such as your name, birthday and phone number. They will not have access to your messages or private photos.
After providing your personal details, the agent will forward your application to the main office for assessment and approval. Home Credit might call you to verify your information.
If your application is approved, the agent will print the loan agreement for you to sign. You will also have to give your fingerprints and have your photograph taken.
Home Credit might also offer different payment terms with a lower cashout and a slightly higher monthly installment amount. You can choose to accept the offer or stick with your original payment terms.
The entire process should take no longer than 30 minutes. Pay the downpayment amount to the cashier and bring home your brand new device!
Make sure that you pay your monthly installments on time, preferably 3 days before the due date. You can download and install the Home Credit app to stay updated on your loans and payments.
Tips to Get Approved With Home Credit Philippines
Here are some tips that can increase your chances of getting approved for a Home Credit loan.
Disclaimer: Some of these tips may not be totally accurate or fool-proof, as these are based on my personal experience as well as online research. The advice posted here does not reflect the guidelines or criteria of Home Credit. I am not an employee of Home Credit Philippines (and I don’t pretend to be one) nor do I have any connections with the company. If you have any doubts or concerns, just contact a Home Credit agent or representative.
Declare Your Assets and Income
We all know that financial companies are interested in your capacity to pay diligently and on time. So if you show that you have the financial capacity, then these companies are more likely to lend money to you. Home Credit is no different.
Being an owner of a house or a car shows that you are more than capable of paying off your loan on time, increasing your chances of approval without all the phone calls. It also helps if you have a stable job with an above average salary.
Provide Legitimate References
As much as possible, provide personal references of people who are successful or have high-paying jobs. If you can mention a lawyer, a politician or a wealthy businessman, then do so. Just make sure that they are your friends or relatives or that they know you personally. If they are your siblings or close relatives, then much better.
Settle Your Overdue Loans, If Any
Home Credit Philippines uses data from the SEC Credit Information Corporation, so they will know if you have any overdue or outstanding loans or payments with other banks and financial institutions. Before you apply for a Home Credit loan, make sure that your accounts are in good standing and that you have settled your overdue loans.
Offer to Pay a Higher Cashout Amount
If you are not very confident about your chances to be approved, you can offer to pay a higher cashout amount or downpayment. Home Credit Philippines recommends that you pay the highest downpayment you can provide, as this will result in smaller monthly installments.
You can also offer to pay for a shorter loan period, such as 6 or 9 months instead of 1 or 2 years. The shorter the loan period, the lower your chances of defaulting on your loan.
Make Sure That Your Facebook Profile Information is Accurate
As I’ve mentioned earlier, you will be asked to log in to your Facebook account on the sales agent’s computer. Having an accurate and active Facebook profile is one way to show that you are a legitimate and trustworthy borrower.
Now, if your Facebook profile’s name is different from your real name, that might reduce the chances of your application getting approved. The same goes for your other personal information such as birthday, work, mobile phone and email address. So before you apply for a Home Credit loan, make sure that your Facebook profile information is accurate.
Ready to Apply?
As you can see, applying for a loan with Home Credit Philippines is quite easy. You don’t need to offer collateral and go through a lengthy and extensive credit investigation to avail of a non-cash loan. Home Credit is really a blessing to many Filipinos who are not eligible for traditional personal loans due to its easy requirements and quick application process.
I hope that this guide will help you in your Home Credit loan application. If you have any questions or concerns, you may comment below and I will try my best to answer you.