Is It Actually Good to Shop Around for a Personal Loan
Life is busy because we all work hard to meet our ends. And in the middle of all this chaos, we feel the need to reconnect with ourselves to stay sane. All of us have a bucket-list that lists everything to make us happy. It might be taking our dream vacation, going on a world tour, or get married to our childhood sweetheart the royal way. And to fulfill all our dreams and desires, a personal loan has got our back always.
What is a Personal Loan?
Money borrowed to help us sail through our hardships or supplement our expensive purchase is considered as a personal loan click here to find out more.. Since they aren’t taken against any collateral, they carry a relatively higher rate of interest. Paid back in installments over the next two to six years, many consider it an unnecessary financial burden for such a long period.
Reasons to Shop Around for a Personal Loan
Talk to someone about getting a personal loan; they’ll lecture you that you are making a wrong financial decision. Then panicking, rush to confirm their advice, and all you’ll find are negative online reviews about it. But all of them are uninformed ‘financial advisors.’ People do commit mistakes while making sound financial decisions, but does that mean shutting all the finances forever? If taken with rationality and for a reason whose validation can’t be denied, taking a personal loan is an excellent financial decision.
Multiple monthly debt installments and credit card dues are one thing common to us all. And sometimes all we see in our future is payments and some more payments. Taking a personal loan to consolidate all these multiple loans and dues in a single monthly installment take that mental burden off us — no need to load our accounts before a long list of cut-off dates. Consolidation would save you the trouble of remembering all the unnecessary times and figures and would let you focus only on your work.
Finance a Large Purchase
A sudden great offer on a home theater system or unexpected breakdown of a washing machine, we all are never prepared for any such contingency. And delaying it sometimes might cost us more than buying it. Personal loans fill this financial void in our lives just when we have nowhere to go. They are a great alternative to finance your entertainment needs or comforts, provided you are undertaking such a loan for a legal and valid reason. Taking a loan to add those Gucci shoes to your collection isn’t a valid reason.
Meeting emergency cash needs
An emergency is a situation that cannot be delayed at all. And since life is unexpected, we all face such situations sometimes. One of the most significant crises is the medical one. Medical treatments that haven’t got you covered but need immediate attention can be financed well with a personal loan. Dental procedures, infertility treatment, or other such emergent situations, including aftercare, can be a strain on you if not financed well.
Another emergent situation could arise at the sudden demise of a family member. Believe it or not, funerals are pretty expensive, and no one ever anticipates them. Booking a burial place, buying a casket, arranging funeral services, church prayers, or such factors adds up to a few thousand dollars at least. Organizing a personal loan to take care of all this instead of adding up to your sufferings further is a better idea sometimes.
We all have a ‘dream wedding’ in our minds. The dream venue, favorite cuisine, beautiful cake, lavish set-up, flower arrangements, and the list is endless. But practically when we add up all this, marriage becomes an expensive affair. The engagement ring and the dress alone cost us nth months of salary. The solution? Get your dream through a wedding loan, aka personal loan. But remember to go for the seller who has the lowest rate of interest.
Invest in your dream start-up
We all have goals in life: personal and professional. Though we all work hard in our jobs to pay our bills, deep down, we all have a strong desire to have our own little ‘dream venture.’ A bakery, an art school, an IT firm, a tattoo parlor. There are 7.5 billion walking dreams on our planet, waiting to come true, most of them facing a common issue: a financial crunch. Personal loans are Godsent for us all to make our dreams see the daylight. Just weigh in the costs, including loan interest and the estimated revenue before taking this financial decision.
Home remodeling costs
Remodeling home is never pre-planned. And we hardly have spare cash for it. Installing a modular kitchen for ease of cooking, getting our garden landscaped to have some peaceful time at the end of a tiring day, refinishing the patio to add accessories for house gatherings are such expenses that crop up suddenly. Financing them through personal loans is a better alternative rather than paying for them in cash as they are capital expenditures.
A good alternative to payday loan
Some emergencies are so urgent that waiting for funds might cost an irreparable loss. An accident of a near one might be covered with insurance, but what about the expenses in the interim. Immediate cash is the solution to saving our dear ones’ life. Many of us turn to payday loans as you get the money in under an hour and not to forget, with an interest rate of higher than 400%. This is a financial decision gone all wrong. Considering a personal loan in such a situation is the best option. Immediate cash disbursement, much lower rate of interest, and proper legal terms, they give you all-round protection.
Improving your credit score
You might not realize this, but a personal loan might help improve your credit score by creating an “account mix’ in your credit report. Only credit card debt lowers your score. Although you would have limited options to choose from, they’d still be better than a payday loan.
Think wise to live good!