Personal loan. Payday loan. Cash advance. Installment loan. Short-term loans go by many different names, but whatever you call them, they have gotten a bad reputation over the years. Many people view them as a way to take advantage of vulnerable borrowers and complain that the interest rates that accompany them are too high. Really, though, it’s not fair for these loans to be judged so harshly. In short, don’t listen to what others have to say. There is plenty of good in personal loans, read on to learn more.
Money When You Need It
Perhaps one of the very best things about personal loans is that they provide you with money when you need it the most. They can also open up all kinds of possibilities in your life. Maybe you’ve always wanted to take a short vacation, for example, and finally have the time, but a little short on the money to fund this getaway, a personal loan may be the answer. A short term loan can make what initially was thought to be impossible, quite possible. It could also help you reach bigger goals, such as owning a car or other big ticket items such as appliances. While personal loan amounts are typically small, having that extra little bit to add to what you’ve already saved can really come in handy.
These loans are also great when the unexpected happens. Maybe you suddenly need money for car repairs. Or maybe someone in the family is sick and needs a doctor’s visit. Whatever the case may be, payday loans give you the chance to acquire money right when you need it most.
You Approve the Terms and Conditions
While it is true that the interest rates on personal loans can sometimes be a little on the high side, you never have to agree to any interest rates or other terms or conditions that you don’t like. All lenders are required to show you the terms and conditions of the loan, along with the interest rate, right upfront. You always have the ability to approve these terms and conditions and proceed with the loan or to turn them down. You are in the driver’s seat, and hold the power. Make lenders work for your business.
Savvy lenders will work with you to help you find terms and conditions that are more suitable for your specific needs and budget. Also, keep in mind that you can avoid some of the cost of the high interest rates by paying the loan back early, all at once or paying more than your actual payments cost at a given time. Using any of these payment factors also can have a nice positive impact on your credit score.
You Don’t Have to Borrow Big
Finally, understand that with payday loans, you’re not going to be borrowing some huge sum of money. In fact, most payday loans companies won’t lend amounts higher than $1000. Since you can only borrow smaller amounts and because most lenders base how much you can borrow on your budget, it’s not very likely that you would be stuck trying to pay back some huge bill you just can’t manage.
Once you have determined that a personal loan is in your future, do your research. There are many legitimate lenders online that are willing to work with you and your budget. Understand the rates and terms. Read the small print and communicate with your lender to make certain there are no misunderstandings. The truth be known, short term loans are all about options and about choice. Don’t believe the lies; embrace the good in personal loans!