Sometimes, the wise thing to do to when you know you could use some money is stop hoping and wishing and just take action. Personal loans are so often frowned upon, but they really don’t have to be something negative. Personal loans are also known as ‘unsecured loans’ and as long as you respect the terms of the loan and make your payments, there’s no reason the experience should be anything but positive. Here are Fast Access Finance’s 10 reasons to make a personal loan part of your plans in the New Year:
Waiting is not something that most people want as part of the equation when they need money. Personal loans generally can be approved pretty quickly so you can have your money when you want it, without having to wait very long.
2. No Collateral Necessary
Personal loans are unsecured loans, which means that you don’t have to secure an asset like your home or a car against the amount of the loan. To many people, this is a lot less stressful, as they can borrow money without having to think about the possibility of losing something that belongs to them.
3. Multitude of Uses
Since personal loans are essentially lump sums of cash, you can use them for scores of different reasons, including:
- New car
- Marriage / honeymoon
- Home repairs
- Debt consolidation
- School tuition
Unlike some types of credit cards and other forms of credit, you aren’t restricted when spending personal loans. This gives you a measure of control with the planning and purchasing, especially with large ticket items. If you shop around among lenders to find the best deal, your level of control will even be higher.
5. Fixed Repayment Time Frame
The fixed repayment terms of most personal loans help to organize the debt and help you get it paid off sooner. Credit cards have minimum payment systems that are designed to keep you in debt longer. With personal loans, you know that by making your payments you’ll have it paid off by a specific date.
6. Multiple Products to Choose From
Many lenders offer different types of personal loans to appeal to the personalities and situations of different borrowers. Not all credit cards or credit lines have the same type of diversity that’s possible with personal loans.
7. Different Interest Rates
With personal loans, you often have the ability to pay a lower interest rate if your credit history is strong. If you have a good credit score, you’ll be rewarded with a lower rate. With cards and credit lines, everyone pays the same interest rate no matter how great their credit happens to be.
8. Fixed Interest Rate
Once you qualify for a personal loan and agree to the terms, the interest rate you see is fixed for the life of the loan. With credit cards and other forms of credit, the rates will rise and fall and affect your monthly payments. Fixed rates mean your monthly payment is also fixed.
9. Borrower-Friendly Terms
More and more lenders are customizing or tailoring personal loans to suit the borrower, and if you can find such a lender, your terms will be much better. Ask about the potential for customization when you first make contact.
How you apply for personal loans is now a lot easier, with online applications. Many lenders offer online applications, and you can also find lenders for personal loans that stray from the conventional, big corporate lender.
All in all, there are lots of reasons to consider personal loans if you find yourself in need of some extra money in the New Year! Fast Access Finance can set you up with an unsecured personal loan – you can even complete the online application within the comfort of your home. Find out more about our personal loan offerings here.