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What Is So Personal About A Personal Loan?
When we are asked, “What do you want to see Mr. Jones for?” and you say its personal, you actually mean, “mind your own business”. And personal loans are exactly that: The lender minds his own business: He grants you a loan, no questions asked. Sometimes there is a limited term, some specific interest or condition, but it will give you the freedom of using it for anything at all.
For Example
A new home mortgage is a loan to be used only to buy a new home. The “prize”, so to speak, is a 20 or 30 year term to repay the loan and a very low interest. A car loan is good when you are using it to buy a car. The security becomes the car itself and you dont need to worry about affecting your home, your business, or somebody willing to act as collateral.
Theyre Just So Personal
Personal loans on the other hand are a special kind of their own. The usual terms are between 6 and 36 months and interest rates are also intermediate, between the mortgage rates and credit card rates, which are the highest.
So, APRs usually fluctuate around 6% to 8%. These conditions make personal loans accessible, but not too much and on the other hand, they have a fairly short payback term.
How Do We Know When
to apply for a personal loan and when to go for a different line of credit? Think of it in the following terms: Is there a better option for what you want it? If it is the case of a business you want to develop, then you have special “small business loans” that will get you better conditions based on your business plan, cash flow and market share.
A Car Loan
If it is a car you want, then better go to a car loan broker straight out. Hes got the best conditions as well as insurance and also the possibility to get you a good deal on the purchase itself.
Home Loans
These can be got through the line of mortgage loans and we all know how looooong they are to pay, although the interest is so conveniently low. Then, buying a home is not an option for a personal loan.
So, Theres A Lot To Choose From
Right, there are so many things to use a personal loan for, that the list would exceed the space here. So, to give just a few examples, you can change your furniture, get a whacking holiday, renew your wardrobe and so many other things that just cant be used as collateral.
And Thats The Point, Precisely.
Many times, say, not considering bad credit, personal loans are granted, based on track records, good credit, good job, good bank reports and other good information that the lender can obtain.
The loan conditions are not so great, but you have the advantage of just signing for it and thats it, besides the fact that you can use it for something that you just dont need to declare. No questions asked.
Securities
If a signature is not enough, the lender will ask you for a security, to make sure you will repay. But no one will ever know what you did with the money and no one will ever care. Perhaps you want to pay for something too personal and you dont want your family to know, or even a surprise for your family.
Get One Tailored For You
Check out on-line options. There will be one just right for you, Im sure. Do your homework well and youll be very happy with your decision.
Is a Payday Loan Right for Me?
With all of the negative information being circulated about payday loans, it may be difficult to distinguish between the facts and the rumors. In fact, all of the negative attention given to payday loans has prevented many consumers from obtaining quick cash, which can create a negative impact on their lives.
What to Consider in Your Circumstances
The first thing youll want to determine when seeking a short-term payday loan is whether you can realistically afford to pay back the loan out of your next paycheck. The second thing youll want to consider is your use for the money. Is it really something that needs to be tended to now, or could it wait until your paycheck arrives?
Once you have determined that you need the services of a payday lender, youll want to do your homework and educate yourself on the interest rates and the fees associated with the loan.
The bottom line is that a payday loan can be very useful, and if used responsibly, can prevent short-term cash flow problems for hardworking consumers.
Common Reasons for Payday Loans
1. When you lack the credit to receive a traditional loan through a bank – For many with poor or no credit, obtaining short-term cash through their bank is simply impossible. In addition, many consumers that do have the credit opt for payday loans because they can avoid the lengthy process of applying for a traditional loan through their local bank. Payday lenders, in fact, often do not run credit checks, and they certainly dont make you justify what you plan on doing with the money. The freedom of obtaining cash for your short-term cash flow problems can be easily accomplished with a payday loan.
2. When you need the money quickly Obtaining money through your bank is not a short process, by any means. The loan process can take anywhere from several days to several weeks, and the reality is that most consumers seeking payday loans are doing so because the money is needed immediately. Imagine waiting for a bank loan to get your car fixed, to repair your leaking roof, or to replace your broken computer. If waiting on money isnt an option, then a payday loan may be right for you.
3. When you dont have access to credit For many consumers, a credit card is often the tool used to get them out of short-term cash flow problems. Unfortunately, however, not all of us have credit cards due to poor or no credit. Payday loans are often used as a smart alternative to credit cards, and they are available for many individuals, regardless of their credit history.
4. When you dont want the hassle of long-term debt Many consumers seek payday loans, even if their credit is strong and even when they have access to credit cards and other types of loans. Why? For many, they simply dont want to incur any additional debt that must be repaid every month. A payday loan, unlike a traditional loan or credit card balance, is simply paid back when the consumer receives his or her next paycheck.
Depending upon your individual circumstances, a payday loan certainly be the right choice to tide your finances over until your paycheck arrives.