4 Truths About Personal Loans

4 Truths About Personal Loans

Personal loans can be a great addition to your financial tool belt. When used correctly, they are an amazing avenue to help get you out of a bind or bring your dreams to life. If you’ve never used one before they can be a little confusing, but we’re here to set the record straight.

Personal Loans Are Not Complicated

First-time borrowers will be amazed when they realize that the process of getting a personal loan is so easy. Many personal loan options are unsecured, which means that there is no collateral. The amount you can borrow is based on credit score and worthiness. Many lenders have flexible repayment options as well. If you’re interested in how a personal loan could be beneficial, don’t hesitate to reach out to your local financial institution and have someone walk you through the process. It’s a lot easier than you may think.

Personal Loans are Not Expensive

A common myth is that personal loans are expensive. This is just not true. Just like any other competitive market, many lenders want to offer great low rates with lots of benefits and options to help satisfy your needs. Personal loans can also save you money long term if you need a set amount of cash without the temptation of overspending like you may with a credit card.

You Don’t Need Excellent Credit to Get a Personal Loan

Obviously, if you have a low-end credit score it may be more difficult to obtain a loan. However, you don’t need to have the best score in the world either. If you have a good credit score with decent credit history, chances are you will be approved for some sort of personal loan.

If you are not approved for your initial loan amount, don’t worry. Many lenders want to help you out. If you don’t qualify for the amount you requested, some lenders may offer you a slightly higher interest rate, lower amount, or redirect you to something like a secured loan. These are all viable options depending on your situation.

You Can Use the Funds for Anything

One of the most amazing things about personal loans is that they can be used for almost anything. Unlike a vehicle loan or mortgage, the funds you get from a personal loan can be applied to anything. The most common uses are weddings, home repairs, vehicle repairs, and vacations, but these are not the limits of those funds.

If you have a good credit score and decent credit history, you could use your loan however you wish. Personal loans can be a great, inexpensive way to help take care of a few repairs or bring your dream to life. They are also fairly easy to acquire. We hope that we’ve helped set the record straight on a few myths about personal loans.

If you still have questions or would like more information, feel free to visit our personal loans page or contact us.

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