Maybe you’re in need of money to pay for a major home renovation project. Maybe you want to travel the world. Perhaps you want to give your daughter the wedding of her dreams.
While all of these things are exciting, they also cost money. And in most cases, plenty of it.
If you don’t have the money or are reluctant to spend what you do have, there are options available to you. A personal loan is a good place to start.
The benefits of a personal loan run deep, including but not limited to the following:
1. Borrow What You Need
No matter how much money you need, there’s a chance that a personal loan could be the best solution.
Go into the search process with an idea of how much you want to borrow. From there, after applying, you’ll see how much lenders are willing to offer you. This is based largely on your credit history, credit score, and financial circumstances.
2. Competitive Interest Rates
Generally speaking, personal loan rates are a touch higher than competing products, such as a home equity loan. And there’s a reason for that: it’s an unsecured loan.
With an unsecured loan, you’re not required by the lender to provide collateral. So, the lender protects itself by attaching a higher interest rate to your loan.
3. Many Lenders to Choose From
Personal loans are growing in popularity, which increases the likelihood of finding a lender or credit union that can meet your every want and need.
Start by comparing lenders online. From there, reach out to any that pique your interest, either over the phone or in person. While doing so, make note of the pros and cons of each lender, which allows you to best compare your options before making a final decision.
Tip: don’t assume that one lender is the same as the next. They’re different in many ways, ranging from the interest rates they offer to the terms and conditions of the loan.
4. The Same Payment Every Month
Before taking out a personal loan, it’s critical that you understand the impact it’ll have on your finances.
Since the payment remains the same every month, it’s easier to plan for a personal loan. This doesn’t hold true with other options, such as a credit card or home equity line of credit.
5. Approval is Fast
As long as everything checks out with your application, approval typically comes within one to two business days.
Depending on the lender, you may even receive an approval on the day you apply.
From there, once you agree to the terms and conditions, you can obtain the money via a bank wire transfer within 24 hours (most of the time).
Now that you understand the many benefits of a personal loan, it’s something to strongly consider should you find yourself in need of a large chunk of money.
Even if you don’t apply right away, a detailed conversation with your lender of choice can go a long way in clearing the air.