2 of probably the best ways for a seaman to be able to stay away from being debt ridden and bad credit standing is to pay on time and get only the amount of loan right for your income and expenses. But did you know that there are many other factors involved in order to remain in good standing with your loan accounts apart from paying in advance or on time and getting the right loanable amount?
Yes there are actually a lot of ways and I must say that if you just properly communicate and get a professional loan agent, it can save you a lot of trouble paying for your seaman loan monthly amortization with the lending company. Apart from this fact, there are 2 more ways to achieve a clean credit standing. That is, to carefully understand the loan contract terms and get the perfect co-borrower to use. I will state the reasons below why I chose to reveal these 3 factors affecting your payments and credit standing for a seafarer loan.
- Getting a professional loan consultant – I have already mentioned this from a previous post and it was carefully and clearly explained why it is a very important factor to help you with realizing all about applying for the right loan at the right time with the right requirements on hand. Plus the proper understanding about how and why many sailors get debt-ridden in such a short time leaving many of them no choice but apply to other lending companies with bigger and higher interest rates only to end up with more unpaid debts.
- Getting the perfect co-borrower – It does not necessarily mean that when you have an allottee, it is your best co-borrower but for most lending companies, the one who receives the allotment is the perfect partner for a seaman when filing for a loan. Little do sailors know that they have a choice the moment they want to declare a co-borrower, more so, an allottee to appear in the allotment slip of the manning agency. Meaning, first hand, if you know that your allottee is not capable of coming up with your payment for the seaman loan, inform him or her prior to getting the cash loan that failed payment can pose a serious threat to your credit standing with lending companies. This will eventually lead to bad credit status. So to avoid such, explain to your co-borrower the consequences should a failed loan amortization payment occur so that if and when such time comes, a solution may be on hand before the problem gets worse. A delayed salary for seafarers is usually the cause for failed or delayed payments.
- Understanding the loan contract and terms – Many seafarers fail to do this simple step. Little do most of them know that this is actually the most crucial part of the loan application process whether you are opting in for a collateral or non-collateral loan. Let me give you an example – a seaman applies for a loan, gets approved of 100k loanable amount. The terms will be explained then on. This happens before the seafarer avails or approves and signs the loan contract. Then a loan amount release is on the way. This process of explanation is actually where all the juice can be learned. For example, if a failed payment is on the way, the seaman is instructed to opt in for a hold-check and pay for the penalty. This way, there will be no other penalties incurred on the seafarer’s account. Why this is important is simply because when a failed payment results to an insufficient bank initial deposit or fund, the bank will charge their own penalty. It is part of the banking laws that clients who fail to retain a threshold of maintaining balance for a checking account, a corresponding penalty will be charged plus a bounced check could later on result which leads to a BP-22 bouncing cheque case. Apart from the bank penalty and the BP-22 case, the lending company will charge the borrower with their own penalty for failure to fund the check. Another possible fee to pay is the collection officer’s fee. Now, a tripple whammy is on the way and just imagine how much penalty charges alone and pending court case could result by just failing to request to hold a check deposit for a scheduled loan payment?
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