Do you need a personal loan badly but are having second thoughts about getting one? Getting a personal loan can be understandably scary, as it does involve some risk. You’ll owe some people money and though you know you can pay them back, there’s always the slight chance you may not be able to, and the consequences for that may be much too unpleasant for you to even think about.
But getting a personal loan really shouldn’t be so shrouded in negativity. Loans are built to help you out, and if you still think otherwise, here are some facts about personal loans that might change your mind:
1. Personal loans are fast.
The process for applying for a personal loan is so fast and easy, with no unnecessarily long documents to fill up or process. And you don’t have to wait long to get the money you need delivered straight to your door.
2. Personal loans are convenient.
Online, all it takes to apply for a personal loan is a few clicks, and you never have to leave the house since the money or cheque is sent directly to you.
3. Personal loans have fixed repayment time frames.
How is this a good thing, you ask? Having fixed repayment time frames means you know exactly how long you have to pay off the loan, and this can help you plan your finances better. Unlike credit cards that can keep you in debt longer, once you pay off the loan, you’re done. You don’t need to think about it any longer knowing it’s fully paid.
4. ...and fixed rates.
Unlike other types of loans and credit cards, personal loans have fixed rates, so you don’t have to worry about fluctuating rates or paying more for your loan in the future. Fixed rates also allow you to accurately plan your finances ahead of time.
5. No collateral needed.
Some loans require you to specify assets as collateral, but not personal loans. With personal loans you don’t have to worry about where you’ll get collateral, or that you won’t get your valuable assets back in case you can’t pay off the loan.
6. Personal loans give you plenty of options.
Various personal loans have different repayment options. You can choose to repay fully within a short span of time or a longer time frame. There are also plenty of different personal loan plans and options to suit different and unique needs.
7. Lower interest rates.
Personal loan interest rates are definitely much lower than those of credit cards, and with so many lenders and their many different loan options vying for your attention, interest rates are getting competitively lower. You can even be rewarded with an even lower one if your credit score is high.
8. You can use personal loans for different things.
Whether it’s paying off your bills, buying a house, financing your wedding, setting up your own business or saving you from a financial crisis, personal loans can be used for just about anything. They can even be used to consolidate multiple debts.
9. You can get one even with bad credit.
Nowadays, plenty of lenders offer personal loans for people with bad credit. So even if you have bad credit you need not worry about getting your loan application rejected, because there’s one made especially for people in your situation.
10. Personal loans have the “personal” touch.
Big financial institutions that offer loans can be quite intimidating and impersonal. Most people find themselves suspicious of these institutions because of the way they present themselves. But with direct lending companies offering personal loans, you get to face real people, make deals with real investors and not feel intimidated by some large, anonymous institution.
With these ten benefits, there’s really no reason to fear getting a personal loan any longer. Start solving your financial problems sooner and enjoy a slew of benefits by getting a personal loan today.
Debra Wright blogs about a plethora of topics including personal loans and other fields. Wright considers Personal Finance Co as one of the leaders in online loan application.