Personal Loans Have Serious Advantages Over Other Types Of Loans
Submitted by: I-Newswire
Floida (OPENPRESS) May 2, 2012 - In recent years, with the looming financial crisis putting a strangle-hold on the world of finance, personal loans sort of fell out of favor. But they are once again on the rise.
Personal loans can be used for a variety of reasons - home repairs, medical expenses, a wedding, or your dream vacation. Since personal loans are unsecured, you don't have to worry about risking your home or other property. And you can even use a personal loan to consolidate and pay off your existing debt.
So after all the upheaval in the financial world, why are people swinging back toward personal loans? During the recession, many people turned toward credit cards to make ends meet or to pay for unexpected expenses. Now that things are on the upswing, many are looking to consolidation and pay off that debt.
Another reason is the high interest most credit cards carry. If you could consolidate your high interest debt into a loan with a lower rate and lower payment, wouldn't you do it?
Homeowners are also turning away from home equity loans and toward personal loans, mostly due to falling home values and tighter lending standards at traditional lenders like banks and credit unions.
As for lenders, well, they're looking to regain their losses during the recession and to grow beyond where they were when the whole thing started.
But what are the real advantages to personal loans? Here are a few:
• Personal loans do not require any collateral.
• You can get a personal loan through either a traditional lender, like a bank or credit union, or go online to a less traditional lender and apply online.
• In most cases, all you need to do to apply is to satisfy the eligibility criteria, which can vary from lender to lender.
• Personal loans are available in small or large amounts, and you don't have to state a purpose for the loan - you can use it for any need you might have.
• The interest rates on personal loans are so much lower than credit cards that it is smart to go ahead and take the leap to consolidation. For example, if you have three credit cards with interest rates ranging from 10 percent to 18 percent, and you can consolidate all three debts into one loan at 9 percent, you'll save quite a bit of money.
Personal loans are not for everyone - but they are certainly a viable option for most. Check out the options and see if you can find the loan that's right for you.