Avoid loan apps, a word of advice.

[jossiel]

Indeed on difficult position actually I will avoid from loan apps, nowadays many loan apps as legal or not offering the loan with unbelievable loan interest up to 20% until 40% with loan period without one year. Although loan app offering easily process without any difficult rule but believing one day late for loan payment you will pay more loan interest, so if you don't have other option for getting loan don't try with loan apps most of them has hidden rule when your get delaying loan payment.
Get loan from the bank exactly in my country Indonesia if you have business any special offer with loan interest only 8% with loan duration around one or two years later.

That also teaches the borrower to be on time during the scheduled payments, I think that's written in their agreement that if you miss paying on the scheduled date, the interest goes up automatically.

I agree of getting a loan in the bank is much better because of how little the interest is, but they're almost the same as strict as the loan apps.

But with them, you're also building your credit line that you need to impress them by paying on time.

[Jody.Drummer]

It is true what you said if you want to take out a loan then do it when we are experiencing an urgent or emergency situation and even then if we do not have spare money because if you still have emergency money then it is better not to take out a loan, there are many cases where people borrow money on applications and some are trustworthy in paying it back and some are not but there are also cases where those who do not pay this get terror from the loan company. My friend took out a loan and to pay it off he borrowed again on another application so what he did was the wrong way which is "dig a hole to cover a hole" until finally the loan amount was high and he was unable to pay it off as a result he got terror from his company and even had time to be visited by his company staff.

Loan app is tailored to specific demography, more specifically those who don't have high credit score, in a pinch, and have higher risk of defaulting. This is why the interest is so high because the app needs to offset the risk by charging high interest, in other word it's a trap for credit cardless, low credit score people.

It's the worst decision ever to take on a predatory app loan where if you calculate the extreme interest, you'd easily figured out that these companies charges 400% APR to their users. Just never touch this shit is my advice.

Your friend fell right into the trap, this kind of scheme is basically a money glitch for these loan company, they're getting compounded interest using the same amount of money.

I agree with you about the interest rates, which tend to be quite high. My friend took out a loan but couldn't repay it, so he defaulted, and now the interest has exceeded the original loan amount. As for advice, the best thing to do is avoid it, even offline loans. But I have another thought: they took out a loan and defaulted, and the method they used was to change their phone number, eliminating the constant threat. Even if you do decide to take out a loan from an online application, you should understand its clear purpose to prevent significant losses.

[Akbarkoe]

Borrowing anywhere whether it's an app or not is the same, the most important thing is to borrow the amount you can pay according to the maturity given, use the borrowed money wisely, that way you can live better, don't do stupid things with money that you didn't earn yourself, such as increasing liabilities with the borrowed money.
But loans on online applications usually have relatively high interest unlike interest on ordinary banks, it must also be taken into account well, especially if we do not pay installments according to the tempo, the daily fine is quite large.

[knowngunman]

I agree with you about the interest rates, which tend to be quite high. My friend took out a loan but couldn't repay it, so he defaulted, and now the interest has exceeded the original loan amount. As for advice, the best thing to do is avoid it, even offline loans. But I have another thought: they took out a loan and defaulted, and the method they used was to change their phone number, eliminating the constant threat. Even if you do decide to take out a loan from an online application, you should understand its clear purpose to prevent significant losses.

Seriously, I don't understand why people keep complaining about high interest rates on loan apps. Everything is stated clearly on their terms and conditions which people that patronize them are supposed to read. This include the interest rates, the duration and penalty for default. Even in commercial banks, when you failed to pay up at due time the interest will continue accrue until you pay off your dept. I'm not trying to defend their high interest rates but what I'm trying to say is people have a choice either proceed and accept the terms or decline if they feel the interest is too high to bear.

Changing phone number in my opinion is a criminal act. It's a deliberate attempt to default the loan and prevent the loan providers from reaching you. You can only stop them from reaching out to you but changing your phone number does not cancel or clear the loan on your profile. You also risk your banking profile being flagged if continue defaulting loans from different platforms.

[summonerrk]

In the countries where I live, credit applications are not common, unless they are the brainchild of microfinance organizations that give money to people at a high interest rate.
But credit cards themselves are very common here. I know a lot of stories about the terrible debt burden of those people who take on debts to close old debts. My friend is already mired in debt of $13,000. And then the whole situation only gets worse because the interest increases with each new loan. I'm glad that I made the decision a long time ago not to take out loans, even if everything is going to be very bad for me in life.

Yes, I know the kinds of situations you are writing about. We live in similar countries. The only thing is that in the country where I live, microloans are becoming more and more popular because they actually grant those loans. Meanwhile, banks very often refuse because people truly often lack official proof of income, as they do not take official jobs (the reason is the need to disclose one's personal data, which is currently very dangerous for men). And so, they turn to microfinance organizations.

Nowadays, it is practically impossible to cover one bank loan with another, because banks see which loans have already been issued to the client, they see their rating and history, and therefore it is much easier for them to refuse on those grounds.

Once upon a time, I heard that for a bank, the best customer is the one who pays off their loan, but does so with late payments that incur additional interest. This makes them like a chicken that lays golden eggs. They pay their loans on time, but with overpayments. As a result, these customers have a higher credit score than those who consistently pay off their loans without incurring additional interest. I don't have absolutely accurate data to support this, but I've heard this information several times. And considering that the bank's primary source of income comes from its customers, it's likely that this story is true.

[Jody.Drummer]

I agree with you about the interest rates, which tend to be quite high. My friend took out a loan but couldn't repay it, so he defaulted, and now the interest has exceeded the original loan amount. As for advice, the best thing to do is avoid it, even offline loans. But I have another thought: they took out a loan and defaulted, and the method they used was to change their phone number, eliminating the constant threat. Even if you do decide to take out a loan from an online application, you should understand its clear purpose to prevent significant losses.

Seriously, I don't understand why people keep complaining about high interest rates on loan apps. Everything is stated clearly on their terms and conditions which people that patronize them are supposed to read. This include the interest rates, the duration and penalty for default. Even in commercial banks, when you failed to pay up at due time the interest will continue accrue until you pay off your dept. I'm not trying to defend their high interest rates but what I'm trying to say is people have a choice either proceed and accept the terms or decline if they feel the interest is too high to bear.

Changing phone number in my opinion is a criminal act. It's a deliberate attempt to default the loan and prevent the loan providers from reaching you. You can only stop them from reaching out to you but changing your phone number does not cancel or clear the loan on your profile. You also risk your banking profile being flagged if continue defaulting loans from different platforms.

You’re right. Sometimes I even hear my friends complaining about the interest rates, even though the app clearly states the terms and conditions right from the start when they apply for a loan. But maybe some of them are too lazy to read them, so they just borrow the money, and once approved, they take it without reading the terms. As a result, when they can’t pay it back, they’re shocked by the high interest rates. You’re right about deleting that phone number—it just cuts off communication between the staff and the borrower but it doesn’t eliminate the debt that’s already been incurred. Worse yet, my friend said it would just get our names blacklisted by all online lending companies, and even banks.

[LastKiss]

Indeed on difficult position actually I will avoid from loan apps, nowadays many loan apps as legal or not offering the loan with unbelievable loan interest up to 20% until 40% with loan period without one year. Although loan app offering easily process without any difficult rule but believing one day late for loan payment you will pay more loan interest, so if you don't have other option for getting loan don't try with loan apps most of them has hidden rule when your get delaying loan payment.
Get loan from the bank exactly in my country Indonesia if you have business any special offer with loan interest only 8% with loan duration around one or two years later.

That also teaches the borrower to be on time during the scheduled payments, I think that's written in their agreement that if you miss paying on the scheduled date, the interest goes up automatically.

I agree of getting a loan in the bank is much better because of how little the interest is, but they're almost the same as strict as the loan apps.

But with them, you're also building your credit line that you need to impress them by paying on time.

Yeah, in my place some of my friends failed to repay their bank loans, which makes it harder for them to get accepted by companies when they’re looking for a new job. Although bank interest rates are not as high as those of loan apps, banks are much strict. Getting a loan through apps is much easier compared to banks, which is why they’re still popular. However, there is something to be sacrificed and it's their interest rates are very high and if we’re late in repaying, they give unreasonable penalties

[lienfaye]

Borrowing anywhere whether it's an app or not is the same, the most important thing is to borrow the amount you can pay according to the maturity given, use the borrowed money wisely, that way you can live better, don't do stupid things with money that you didn't earn yourself, such as increasing liabilities with the borrowed money.

Indeed. I know someone who borrow money to sustain her wants like buying signature clothes and shoes just to show off to her friends and not thinking of the consequences. She became used to it and left uncontrolled. Her day job salary is already not sufficient to cover the principal and interest. Now the last time I saw her, she's in a problematic situation.

We should really be wise not to commit such decision of borrowing money then unable to pay it on time. Keep in mind that it's our responsibility. So don't take a loan to avoid headaches if you have no money for repayment.

[Berry2d]

Borrowing anywhere whether it's an app or not is the same, the most important thing is to borrow the amount you can pay according to the maturity given, use the borrowed money wisely, that way you can live better, don't do stupid things with money that you didn't earn yourself, such as increasing liabilities with the borrowed money.
But loans on online applications usually have relatively high interest unlike interest on ordinary banks, it must also be taken into account well, especially if we do not pay installments according to the tempo, the daily fine is quite large.

Borrowing according to once capability is the best advice to be given to all as the economic situation have made all to live and survive of loans including nations and not only citizens.
I won't channel blames on any body taking loans  to do what you know can help you him scale through in this hash economy but should never think of going above once level should be the only way forward now.
Almost all economy have been destroyed by greed and funds mismanagement thereby making life a living hell for citizens with dreams and  visions and the only way out of hardship is by surviving  by loans be it small or big ones.  
Loans are not only limited to individuals as most nations depends heavily on loans for there survival.

[Akbarkoe]

Borrowing anywhere whether it's an app or not is the same, the most important thing is to borrow the amount you can pay according to the maturity given, use the borrowed money wisely, that way you can live better, don't do stupid things with money that you didn't earn yourself, such as increasing liabilities with the borrowed money.

Indeed. I know someone who borrow money to sustain her wants like buying signature clothes and shoes just to show off to her friends and not thinking of the consequences. She became used to it and left uncontrolled. Her day job salary is already not sufficient to cover the principal and interest. Now the last time I saw her, she's in a problematic situation.

It means that he is a stupid person, and did not listen to good financial advice to do so, and it could be that he did not learn from the past where there must be people who made the same mistake.

....

Borrowing according to once capability is the best advice to be given to all as the economic situation have made all to live and survive of loans including nations and not only citizens.
I won't channel blames on any body taking loans  to do what you know can help you him scale through in this hash economy but should never think of going above once level should be the only way forward now.
Almost all economy have been destroyed by greed and funds mismanagement thereby making life a living hell for citizens with dreams and  visions and the only way out of hardship is by surviving  by loans be it small or big ones.  
Loans are not only limited to individuals as most nations depends heavily on loans for there survival.

There is no problem taking loans, sometimes it becomes mandatory as a temporary solution in solving urgent problems, indeed we have to take loans, whether for personal or state in situations like this, but as said, we need to measure our abilities first so that the calculations do not miss which results in us being exposed to worse impacts if the loan maturity is not in accordance with the agreement, daily fines that will accumulate into greater debt.

[uneng]

Borrowing anywhere whether it's an app or not is the same, the most important thing is to borrow the amount you can pay according to the maturity given, use the borrowed money wisely, that way you can live better, don't do stupid things with money that you didn't earn yourself, such as increasing liabilities with the borrowed money.

Indeed. I know someone who borrow money to sustain her wants like buying signature clothes and shoes just to show off to her friends and not thinking of the consequences. She became used to it and left uncontrolled. Her day job salary is already not sufficient to cover the principal and interest. Now the last time I saw her, she's in a problematic situation.

We should really be wise not to commit such decision of borrowing money then unable to pay it on time. Keep in mind that it's our responsibility. So don't take a loan to avoid headaches if you have no money for repayment.

Your friend couldn't wait the wage to arrive on her account in order to spend it, so she kept taking loans to have access to the desired goods immediately. However, it was a dumb move, because from that moment on, she started paying much more (on long run) for the same goods, considering the interest rates involved on the loans.

It means that even though she had instant access to clothes and shoes, now she will have to wait a long time until being able to have access to new items once again. So, did it worth after all? I don't think so. Loans are only worthy if the money is going to be used for investment reasons which have potential to return quick cash. And even in this case, interest rates have to be analyzed carefully, otherwise it's simply better to save money until reaching the financial goal instead of borrowing.

[coin-investor]

You should know that you are at the danger of developing a habit of borrowing from them if you patronise loan apps even for the smallest amount.

I actually have some friends who became victims of this kind of addiction. They cannot afford to repay what they borrowed on the first loan application they've used, so they end up using other loan apps to pay off their loans.

They do not look at or even study their interests; all they want is to get a loan so they can pay off their loans and take out another. This is a vicious cycle. Once you cannot pay your loan, some loan apps will threaten to sue you, and they even go to the extent of humiliating you on social medias.

[Yeesha]

Borrowing anywhere whether it's an app or not is the same, the most important thing is to borrow the amount you can pay according to the maturity given, use the borrowed money wisely, that way you can live better, don't do stupid things with money that you didn't earn yourself, such as increasing liabilities with the borrowed money.
But loans on online applications usually have relatively high interest unlike interest on ordinary banks, it must also be taken into account well, especially if we do not pay installments according to the tempo, the daily fine is quite large.

Some people borrow money due to the condition they find themselves, either for emergencies purpose or financial stability. But some people are just borrowing it for no reasons just because they don't have conscious. But I also blame the OP's friend for not paying back the money before the due time. Before someone should carry loan either from the bank or from somebody, you should consider the consequences before making such decisions and think whether you will be able to follow the agreement or not. And besides before taking alone you must have plan on to pay back the money, but if you don't have any tangible way where you could repay the money and if their is no any way, the best thing is to backdown in order to prevent yourself from facing more problems.

[bhadz]

These loan apps are currently conquering in my country. Because of how the banks are very strict with compliance and requirements for their borrowers. The second choice of those who failed to take a loan are these apps. But there's a dark secret from these loan apps that are operating in my country. They're going to get a lot of character reference from you and if you're not able to pay on time, they're going to message and threat you including those reference of yours that they'll humiliate your name to them.