Finance Globe

U.S. financial and economic topics from several finance writers.
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What are the Benefits of a Personal Loan?

What are the Benefits of a Personal Loan?

Are you in desperate need of money? Do you find yourself comparing your many options for obtaining the cash you need?

Like many, the first place you turn is your bank account. If you don’t find what you need, it’s natural to turn your attention to your credit card.

While a personal loan isn’t the right choice for every consumer in need of money, there are many benefits that allow this product to standout. Consider the following:

•    As an unsecured loan, you don’t need to put up any collateral to borrow the money you need.
•    It can be used for anything imaginable, from paying medical bills to taking a vacation.
•    Flexible repayment terms. This depends largely on the lender, but personal loans typically range from 36 to 84 months.
•    Fixed interest rate. One of the biggest benefits of a personal loan, this ensures that your payment remains the same from month to month.
•    No fees. It’s not always the case, but many lenders provide personal loans with no origination fee.

Now that you understand some of the many benefits associated with a personal loan, you need to compare these against other products. This is the only way to ensure that you make an informed and confident decision.

Final tip: no two lenders are the same, even when it comes to a personal loan, so compare all your options before you decide who to borrow from. It’s good practice to learn more about a minimum of three lenders before making a final decision.

With so many benefits of a personal loan, this may be the best place to turn if you find yourself in need of money. It’s not your only option, but it’s one that deserves your attention.

Have you used a personal loan to your advantage in the past? Did this work in your favor? Share your thoughts in the comment section below. 

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Comments 2

Wanderer on Sunday, 23 April 2017 05:38

Used a Personal Loan to help establish myself in the world of credit and to use the funds to pay off debt. What I liked was the fixed interest rate and monthly payment which allowed me to plan for the payment in my budget. My loan was secured with a Certificate of Deposit which got me a really good loan rate. Not everyone can use a secured loan so your loan rate would likely be higher but otherwise it would work the same way.

Used a Personal Loan to help establish myself in the world of credit and to use the funds to pay off debt. What I liked was the fixed interest rate and monthly payment which allowed me to plan for the payment in my budget. My loan was secured with a Certificate of Deposit which got me a really good loan rate. Not everyone can use a secured loan so your loan rate would likely be higher but otherwise it would work the same way.
Frank on Wednesday, 26 July 2017 13:32

I have never used a personal loan, but I agree that they would be good for someone to establish credit or if they were in a bind. I would also recommend to get a secured loan as you will get a much better fixed rate.

I have never used a personal loan, but I agree that they would be good for someone to establish credit or if they were in a bind. I would also recommend to get a secured loan as you will get a much better fixed rate.
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Thursday, 17 October 2019

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