One thing that is common among Baby Boomers, Millennials and Gen-Xers is that they all know how to handle money and, if required, how to borrow from various sources. Almost 83.5 million Americans which means 34%, opted for personal loans last year. Using online financial lending companies or old style physical loan stores/banks the number of borrowers seems to be on the rise. During financial crunches, it is imperative to check out all the available options and make an informed decision. Personal loans are particularly attractive as they are general purpose ones that can be used literally for any financial need ranging from the purchase of goods to payments of monthly bills.
If you are currently seeking for a personal loan here are some interesting facts about personal loans that all should know.
- Personal loans – secured and unsecured types
Generally, a personal loan does not require any assets as collateral and it is a type of unsecured loans. Various checks like the credit history, the ability to repay and so on do not apply for such loans. A secured personal loan(for example – Mortgage loan) is based on collaterals that the borrower agrees to sign for in exchange of the loan while the creditor is relieved of all the financial risk in case of defaulted repayments. This is helpful if one is unable to get an unsecured personal loan for some reason.
- Striking the Best Deal
A personal loan is a one-time loan and it is different from the usual credit card loans. In order to facilitate the easy approval, try to seek a minimum amount. The key to obtain a good deal lies in always keeping the amount of purchase to the minimum so creditors are assured that you can repay.
- Comparing money lenders help
The money lending industry has grown explosively and there are multiple financial institutions like Personalmoneystore.com ready to help you secure a personal loan at a competitive interest rate. Most of the customers are either in a hurry or so frustrated searching for a lender that they forget to compare interest rates before leaping into a conclusion. It is worth remembering that any lending company interest rate depends on three factors: the character of the borrower, the repaying capacity and the credit history.
- Fine Prints Matter
Many times borrowers are in a hurry and take a lazy approach when it comes to reading the terms and conditions of a personal loan. Before signing, a loan document reading the fine print can help you understand the rate of interest and other terminologies which would help you make an impression to your lender that will increase your loan sanction possibility. Also, this prevents a misuse of the loan because of ignorance about the latters.
- The Rate of Interest Depends on the Economy
If the performance of the economy in a particular country is weak then the interests rate is high and consumers end up paying more money on them. The stronger the economies, the lower the rates of interest. Hence in away the rates of interest are attached to the performance of the economy.
- Online Money lending is a prime source
As per an anonymous media survey, a person probably spends around 80,087 hours of their lifetime in the digital world. This means the internet is used even by technology impaired and they search loan buying options online. No wonder that you will find enormous financial institutions and money lending websites like personalmoneystore.com who can connect you to direct money lenders online. They do not only help you get the cash you need but also employ a process that is simple, fast and secure.
- Early Payments Pay Off
Everybody aspires to save on the interest amount when it comes to loans. The faster you repay the higher you cut down on the interests amount that you pay to the financial lender. Alternatively, one can pay off credit cards debt using personal loans since it attracts lower interest rates as compared to credit card debt interests.
- Increase in defaulters boosted the credit checking practice
In the past decade or so the number of defaulters has risen significantly. Due to this, money lenders and financial institutions have become stringent when it comes to personal loans. They want to be assured that they are at a minimum risk when they lend money to their customers. As a borrower, it means you should verify the accuracy of your credit report to get the best possible interest rate on your personal loan.
Use loans only when absolutely required. When in need of extra cash or any type of emergency money and you think you need a personal loan use the above facts to find the perfect option. What are you waiting for, get started by visiting personalmoneystore.com now!