Discover These Personal Loan Myths that Halt Your Financial Success
People tend to stay away from personal loans for many reasons. We’ve heard of stories how people who acquired personal loans ended up in pure bankruptcy mostly due to high-interest-rates. But what you didn’t know is that a personal loan can actually be your friend and help you achieve your financial goals when managed properly. We’ll debunk these myths and show you how a personal loan can become a great financial asset.
It Needs Lifetime Commitment
The truth is, a personal loan is not a lifetime financial commitment. It isn’t like a housing loan where you need to pay it for 20 to 30 years. Most financial institutions can grant a 10-year tenure period at most. That’s why you can finish paying it sooner. You don’t need to bind yourself to a debt for a long period of time.
It’s only for employees
While having a regular and steady job is a plus in paying a loan, it isn’t a requirement for acquiring one. In fact, even a self-employed individual can avail a personal loan. Whether you have a business or are a self-employed professional, you can apply for a personal loan with ease. The bank needs only to assess if you have the capability of paying your loans in due time.
It Requires Credit Reports
Most loans need their applicants to submit good credit reports to avail it, but not with personal loans. Financial institutions will only require a minimum income bracket to assess your ability in paying loans promptly. Although having good credit reports can help fasten your loan approval, you can still apply even if you’re a first-timer.
Acquiring a Personal Loan is a Long, Tedious Process
Many people think acquiring a personal loan involves a lot of paperwork, but that isn’t the case. Today, most banking institutions offer personal loans with minimum documentation. Most of the time, it gets approved within 24-hours from the date of application. There’s also no need for a guarantor or collateral anymore. That’s why you can avail a personal loan without giving up your financial assets and real estate properties.
Personal Loans Can’t Fund Your Business
You might think that personal loans are only meant to fund your personal expenses, but that’s where you’re dead wrong. The truth is, you can use your personal loan to fund your business. You don’t have to avail a business loan right away and get stuck with paying high-interest rates.
Personal Loans Have Insane High-Interest Rates
Why isn’t this true? It’s because personal loans have the lowest interest rates compared to other available loans out there. In fact, acquiring a personal loan is a good way to cut all your other debts. You can pay your debts using your personal loan without worrying about paying the interest. Personal loans also serve as a great emergency fund.
Breaking Beyond the Myths
Now that we’ve debunked these myths, we’re sure that you’re now more than excited to avail your first personal loan. And while we’re ecstatic for you, we advise you not to avail a personal loan more than what you need. Why? It’s because borrowing more money only puts an unnecessary burden on you. Not only you’ll pay a higher-interest-rate, but your tenure period also gets extended. You don’t want to pay your personal loan longer than what you need, right?
The truth is, some people tend to avail a personal loan for their leisure like traveling, buying a high-end gadget like iPhones, etc. They tend to borrow money to buy things with no real purpose. This is the perfect recipe to drown yourself in debt. Instead, practice availing a good debt. Examples of good debts are borrowing money to fund a business, have your house renovated, to cover your medical expenses, etc.
More in Loans & Credit
The Top Monthly Expenses That Could Be Costing You a Fortune!
Coming up with a picture-perfect budget can be a complex affair. That being said, it is an essential element to have...February 15, 2019
Sharapova on Her Childhood and The Things That Make Her Happy
Sharapova’s Childhood There was a time in Maria Sharapova’s life when her family didn’t really have much. According to her, she...February 14, 2019
Nick Jonas and Priyanka Chopra Start a Chapter in $6.5 Million Luxury Villa
To be honest, 2018 was filled with bitter-sweet moments for Hollywood where many celebrities got engaged or married while others ended up in ugly...February 14, 2019
L’Oreal Cosmetic Sales Rises on The Back of Strong Chinese Demand
Chinese Shoppers’ Demands The increased demand of Chinese consumers for luxury skin products, particularly creams contributed to L’Oreal’s success in outperforming...February 13, 2019
Best Ways to Cut Down Credit Card Debt That You Must Know
The present economy means that a lot of people have maxed their credit card out, but the problem is that, even...February 13, 2019
Justin Bieber Proves Family Comes First With a Surprise $850,000 Home
Some of the biggest names in Tinseltown know how their parents struggled to raise them. Many of these celebrities didn’t break through...February 13, 2019
Check Out John Travolta’s Bizarre Home You May Not Want to Live In
Not every celebrity owns homes we would want to buy. In fact, some celebrities’ homes are so bizarre that you may not...February 12, 2019
Inside Kris Jenner’s Secret Hidden Hills Home No One Has Ever Seen Before
Over the years, Momager Kris Jenner has watched her daughters become wealthy and influential. Thanks to Keeping Up with the Kardashians,...February 12, 2019
Look Inside Bradley Cooper’s MASSIVE $13 Million New York Townhouse
Poor Bradley Cooper had to face embarrassment at the Oscars because his directorial debut in A Star is Born was snubbed by the...February 11, 2019