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Tag: Applying for a Loan

  • 6 Reasons to Apply for a Personal Loan Today

    6 Reasons to Apply for a Personal Loan Today

    Everyone wants to have money all the time. But a low salary, student loan, credit card debts and other monthly payables can prevent you from saving money and always having enough cash to support your needs and lifestyle.

    A personal loan application can be the answer to your need for additional funds. When you get approved, you can use the money you get for various reasons and situations.

    Why You Should Get a Personal Loan

    If you are not yet sure about how getting a personal loan can help you, here are the different ways it can do so:

    1.     To pay off debts

    One of the most popular reasons why people apply for a personal loan is to pay off or consolidate debt. If you owe different banks or creditors for a car, student loan or house loan, staying on top of all payments can be difficult. These debts have their own monthly payments, interest rates and due date.

    Because of these, you may miss deadlines and even the actual payments. These, in turn, will cause you to pay higher fees,

    But with the additional cash you can get from your loan, you can pay off all your creditors and make just one payment every month. Debt consolidation will save you money, time and effort. It is one of the top benefits you can enjoy when you take out a personal loan.

    2.     To be rid of credit card debts

    The annual percentage rate or APR of credit cards now ranges from 13.12% to 22.99%. If you cannot pay off your credit card debts within a year, you will keep paying monthly fees that will get bigger and bigger annually.

    Personal loans come at lower rates. This means you will pay lower interests as well. They also come at a predetermined term and, as such, you will have an end date for payments to look forward to.

    3.     To pay for medical expenses

     If you or a loved one is sick or must undergo a minor or major procedure and you do not have any money, a loan will help you out. You can borrow what you need and choose a payment structure that will work for you.

    Examples of medical and health procedures that you can finance with your loan are:

    Cosmetic surgery

    • Orthodontics
    • Dental services
    • Fertility treatments
    • After-care or post-op treatments

    4.     To finance a home improvement project

    Everyone wants to have a beautiful, comfortable, safe and secure home. If you do not have enough money to renovate the living room, kitchen or bathroom, or add a pool or spa on your deck, there is the option of taking out a loan.

     The biggest benefit of getting a personal loan for a home improvement project is that you don’t need equity or collateral to qualify for one. In addition, when you choose the right bank, you can apply for a loan online in your home or office.

    5.     To make a major purchase

    Do you need to buy a new kitchen appliance or living room furniture, or to pay for major car repair work? Get a personal loan to pay for it.

    Although many people use a secured loan to pay for expensive assets, some cannot obtain this because their credit history is too short. If you have this problem, you can apply for a personal loan. You will get the money that you need and pay it back over a longer period of time.

    6.     To enjoy your dream vacation

    If you have always dreamed of going to the Maldives, Bora Bora or Paris and staying at a 5-star hotel and simply enjoying a luxurious getaway, a personal loan can help you achieve this dream. You can do this even if your current financial health is not in good condition.

    You do not have to save money for years to experience the holiday of a lifetime. You can have your loan approved in a matter of days (and sometimes even hours) and go on your vacation whenever you please.

    Overall, a personal loan will allow you to have the money you want or need to pay off your debts or medical bills, to make an expensive purchase, to improve your home, or to go on your dream vacation. And you can do all these without paying for more than is necessary in the short and long run.

  • What You Need to Know Before Applying for a Loan

    What You Need to Know Before Applying for a Loan

    Applying for a loan is probably everyone’s first thought when they lack money. However, while applying for one may be easy, getting the approval for a loan takes certain conditions. This is especially true in the recent years, since the global economic crisis has affected almost every country in the world. Nevertheless, getting a loan from the bank may be the only option for some people, so it’s important they know the basics before they decide to apply for the loan.

    Credit Card as an Alternative

    A personal loan is not the only form of credit. You can also consider getting a credit card, instead of applying for a loan. This is the cheap alternative, since it offers a 0 percent introductory offer on purchases. However, this can be a tricky payment method for those who enjoy shopping and don’t think much about the debt they’re making. Additionally, a long term loan is better option if you won’t be able to pay the credit card debt in time.

    Interest Rate and APR

    Interest rate and annual percentage rate can vary a lot, depending on your lender and your credit profile. If you have a good credit rating, a credit union or a bank you turned to for a loan will provide you with a very low interest. If, on the other hand, you ask a conventional finance company for a loan and your credit rating is poor, the interest rate will be higher than the one on the credit card. However, a huge advantage of conventional personal loan is that it’s not revolving credit, but installment based. This means that if you get an installment loan, the loan will reduce as you pay off each month.

    Good Credit Score

    When you decide to apply for a loan, the lender will most likely base their decision on your credit rating. It’s imperative that the credit score is flawless, and that you’re not already in debt to some other lender, or you’ll get a bad deal. What’s more, in some cases your load will be denied. If you ever get into trouble with credit rating, companies like Clean Credit can help you get a clean slate and have a piece of mind when it comes to your money.

    Early Repayment

    Even though you’re applying for a long term loan so that you can pay it off gradually, it’s possible that you’ll want to repay it earlier. However, this action will cost you, believe it or not. Many lenders will put a clause that says how much more money you’ll have to return in order to fully pay off the loan ahead time. Therefore, read the contract carefully, before you decide to take this step.

    Payment Protection Insurance

    If you’re unable to meet the repayments every month, payment protection insurance will be there to cover them. You might have a family emergency, like unemployment, sickness or an accident and so you won’t be able to repay the loan for that month. Therefore, search for the best deal and make sure you pay the loan regularly, one way, or the other. However, PPI isn’t mandatory, so if you don’t think you need to have one, don’t apply for it.

    If you ever decide to apply for a loan, make sure you check the previous information in order to get the best possible deal. It’s important that you have a good credit rating, so that you can get a loan, and repay it on time. Make sure you are familiar with the basics of applying for a credit, so that you don’t end up with a too high repayment amount. Knowledge is power, so use it to your advantage.