Nov 27, 2019

The Benefit of Obtaining a Personal Loan? Here Are 5 of Them

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Personal finance options aren't the root of all evil, especially when you need help. So, what is the benefit of obtaining a personal loan? Here are 5 of them.
 
Personal finance options aren't the root of all evil, especially when you need help. So, what is the benefit of obtaining a personal loan? Here are 5 of them.
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[[Category:Articles in Quality Review]]
 
[[Category:Articles in Quality Review]]
 
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[[Category:Personal Loans]]
   
 
== Steps ==
 
== Steps ==
 
# Did you know that the average amount of debt we have is about $38,000 per person (this is excluding mortgages!)? This debt includes student loans, car loans, credit card debt, and medical debt, among other things.  If you find yourself in debt and desperately wanting to get out but not sure how, a personal loan might be the best option for you. If you've been wondering "what is the benefit of obtaining a personal loan", you are in the right place. This article will break down the benefits of personal loans and a few other things you should know.  Read on to learn more.  1. Easier to Manage Than Multiple Credit Cards If you use a personal loan to consolidate debt and pay off multiple things, like credit cards, a personal loan simplifies things. Instead of managing multiple credit cards with different due dates, you have one payment, one due date, and one account. The chance of you forgetting to pay something is minimized with just one loan to pay.  2. You Can Build or Improve Your Credit Score A personal loan can help you pay off higher interest credit cards and get your amount of credit used closer to the 30% preferred by most lenders to give you the best interest rates.  If you need to improve your credit score or built credit, a personal loan, with a fixed payment amount and payment schedule, is a simpler way to do this.  3. You'll Know Exactly When the Loan is Paid Off Personal loans are for a specific amount spread out over a specific amount of time. You know your interest rate going into it, and it remains fixed throughout the life of the loan. When you sign your agreement for your personal loan, you'll know exactly how much each monthly payment is and exactly when you'll pay off the loan. 4. You Can Borrow Without Risking Assets Many loans require you to have some sort of collateral. A home equity loan or home equity line of credit both require you to use your home as your collateral. If you don't make your loan payments, the lender can place a lien on your home.  A personal loan, on the other hand, doesn't require any sort of collateral (this is why the interest rates are typically higher than a home equity loan, for example). This means you can take out a loan without having to risk your assets being seized if you default on the loan. Some lenders, like Bonsai Finance, will even base personal loans on your income alone and don't require a credit check. 5. Your Interest Rate and Payment Won't Change Credit cards come with a standard interest rate, but most credit card companies reserve the right to raise your rate at any time. If you miss a payment, for example, credit card companies often increase your rate. Your monthly payment also increases based on the balance of your debt.  This is not the case with a personal loan. The personal loan interest rate is fixed and you borrow a set amount, meaning nothing changes throughout the life of the loan. What Is the Benefit of Obtaining a Personal Loan? There Are Many If you've ever wondered "what is the benefit of obtaining a personal loan", this article presents at least 5 of them, but there are plenty more if you still need convincing. If you find the right lender, personal loans are a legitimate way to finance a large purchase or get out of revolving debt. For more tips and tricks and explanations on how to do everything under the sun, take a look at our other articles.
 
# Did you know that the average amount of debt we have is about $38,000 per person (this is excluding mortgages!)? This debt includes student loans, car loans, credit card debt, and medical debt, among other things.  If you find yourself in debt and desperately wanting to get out but not sure how, a personal loan might be the best option for you. If you've been wondering "what is the benefit of obtaining a personal loan", you are in the right place. This article will break down the benefits of personal loans and a few other things you should know.  Read on to learn more.  1. Easier to Manage Than Multiple Credit Cards If you use a personal loan to consolidate debt and pay off multiple things, like credit cards, a personal loan simplifies things. Instead of managing multiple credit cards with different due dates, you have one payment, one due date, and one account. The chance of you forgetting to pay something is minimized with just one loan to pay.  2. You Can Build or Improve Your Credit Score A personal loan can help you pay off higher interest credit cards and get your amount of credit used closer to the 30% preferred by most lenders to give you the best interest rates.  If you need to improve your credit score or built credit, a personal loan, with a fixed payment amount and payment schedule, is a simpler way to do this.  3. You'll Know Exactly When the Loan is Paid Off Personal loans are for a specific amount spread out over a specific amount of time. You know your interest rate going into it, and it remains fixed throughout the life of the loan. When you sign your agreement for your personal loan, you'll know exactly how much each monthly payment is and exactly when you'll pay off the loan. 4. You Can Borrow Without Risking Assets Many loans require you to have some sort of collateral. A home equity loan or home equity line of credit both require you to use your home as your collateral. If you don't make your loan payments, the lender can place a lien on your home.  A personal loan, on the other hand, doesn't require any sort of collateral (this is why the interest rates are typically higher than a home equity loan, for example). This means you can take out a loan without having to risk your assets being seized if you default on the loan. Some lenders, like Bonsai Finance, will even base personal loans on your income alone and don't require a credit check. 5. Your Interest Rate and Payment Won't Change Credit cards come with a standard interest rate, but most credit card companies reserve the right to raise your rate at any time. If you miss a payment, for example, credit card companies often increase your rate. Your monthly payment also increases based on the balance of your debt.  This is not the case with a personal loan. The personal loan interest rate is fixed and you borrow a set amount, meaning nothing changes throughout the life of the loan. What Is the Benefit of Obtaining a Personal Loan? There Are Many If you've ever wondered "what is the benefit of obtaining a personal loan", this article presents at least 5 of them, but there are plenty more if you still need convincing. If you find the right lender, personal loans are a legitimate way to finance a large purchase or get out of revolving debt. For more tips and tricks and explanations on how to do everything under the sun, take a look at our other articles.
 
# Did you know that the average amount of debt we have is about $38,000 per person (this is excluding mortgages!)? This debt includes student loans, car loans, credit card debt, and medical debt, among other things.  If you find yourself in debt and desperately wanting to get out but not sure how, a personal loan might be the best option for you. If you've been wondering "what is the benefit of obtaining a personal loan", you are in the right place. This article will break down the benefits of personal loans and a few other things you should know.  Read on to learn more.  1. Easier to Manage Than Multiple Credit Cards If you use a personal loan to consolidate debt and pay off multiple things, like credit cards, a personal loan simplifies things. Instead of managing multiple credit cards with different due dates, you have one payment, one due date, and one account. The chance of you forgetting to pay something is minimized with just one loan to pay.  2. You Can Build or Improve Your Credit Score A personal loan can help you pay off higher interest credit cards and get your amount of credit used closer to the 30% preferred by most lenders to give you the best interest rates.  If you need to improve your credit score or built credit, a personal loan, with a fixed payment amount and payment schedule, is a simpler way to do this.  3. You'll Know Exactly When the Loan is Paid Off Personal loans are for a specific amount spread out over a specific amount of time. You know your interest rate going into it, and it remains fixed throughout the life of the loan. When you sign your agreement for your personal loan, you'll know exactly how much each monthly payment is and exactly when you'll pay off the loan. 4. You Can Borrow Without Risking Assets Many loans require you to have some sort of collateral. A home equity loan or home equity line of credit both require you to use your home as your collateral. If you don't make your loan payments, the lender can place a lien on your home.  A personal loan, on the other hand, doesn't require any sort of collateral (this is why the interest rates are typically higher than a home equity loan, for example). This means you can take out a loan without having to risk your assets being seized if you default on the loan. Some lenders, like Bonsai Finance, will even base personal loans on your income alone and don't require a credit check. 5. Your Interest Rate and Payment Won't Change Credit cards come with a standard interest rate, but most credit card companies reserve the right to raise your rate at any time. If you miss a payment, for example, credit card companies often increase your rate. Your monthly payment also increases based on the balance of your debt.  This is not the case with a personal loan. The personal loan interest rate is fixed and you borrow a set amount, meaning nothing changes throughout the life of the loan. What Is the Benefit of Obtaining a Personal Loan? There Are Many If you've ever wondered "what is the benefit of obtaining a personal loan", this article presents at least 5 of them, but there are plenty more if you still need convincing. If you find the right lender, personal loans are a legitimate way to finance a large purchase or get out of revolving debt. For more tips and tricks and explanations on how to do everything under the sun, take a look at our other articles.
 
# Did you know that the average amount of debt we have is about $38,000 per person (this is excluding mortgages!)? This debt includes student loans, car loans, credit card debt, and medical debt, among other things.  If you find yourself in debt and desperately wanting to get out but not sure how, a personal loan might be the best option for you. If you've been wondering "what is the benefit of obtaining a personal loan", you are in the right place. This article will break down the benefits of personal loans and a few other things you should know.  Read on to learn more.  1. Easier to Manage Than Multiple Credit Cards If you use a personal loan to consolidate debt and pay off multiple things, like credit cards, a personal loan simplifies things. Instead of managing multiple credit cards with different due dates, you have one payment, one due date, and one account. The chance of you forgetting to pay something is minimized with just one loan to pay.  2. You Can Build or Improve Your Credit Score A personal loan can help you pay off higher interest credit cards and get your amount of credit used closer to the 30% preferred by most lenders to give you the best interest rates.  If you need to improve your credit score or built credit, a personal loan, with a fixed payment amount and payment schedule, is a simpler way to do this.  3. You'll Know Exactly When the Loan is Paid Off Personal loans are for a specific amount spread out over a specific amount of time. You know your interest rate going into it, and it remains fixed throughout the life of the loan. When you sign your agreement for your personal loan, you'll know exactly how much each monthly payment is and exactly when you'll pay off the loan. 4. You Can Borrow Without Risking Assets Many loans require you to have some sort of collateral. A home equity loan or home equity line of credit both require you to use your home as your collateral. If you don't make your loan payments, the lender can place a lien on your home.  A personal loan, on the other hand, doesn't require any sort of collateral (this is why the interest rates are typically higher than a home equity loan, for example). This means you can take out a loan without having to risk your assets being seized if you default on the loan. Some lenders, like Bonsai Finance, will even base personal loans on your income alone and don't require a credit check. 5. Your Interest Rate and Payment Won't Change Credit cards come with a standard interest rate, but most credit card companies reserve the right to raise your rate at any time. If you miss a payment, for example, credit card companies often increase your rate. Your monthly payment also increases based on the balance of your debt.  This is not the case with a personal loan. The personal loan interest rate is fixed and you borrow a set amount, meaning nothing changes throughout the life of the loan. What Is the Benefit of Obtaining a Personal Loan? There Are Many If you've ever wondered "what is the benefit of obtaining a personal loan", this article presents at least 5 of them, but there are plenty more if you still need convincing. If you find the right lender, personal loans are a legitimate way to finance a large purchase or get out of revolving debt. For more tips and tricks and explanations on how to do everything under the sun, take a look at our other articles.


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