Overcome the Challenges of Unforeseen Financial Needs in Life by Taking Personal Loans
Wednesday, July 18, 2018, 6:00 AM | Leave Comment
To borrow or not to borrow that is the question. Many would laugh at the statement thinking it as irrelevant in the context that we have become so much used to living our lives on credit cards. But still, the truth is that the happiest person is one who does not have any debts.
However, there can be an argument that if at all we would like to seek such happiness because going by today’s lifestyle, people believe in immediate returns.
Everyone is looking for instant gratification and does not have the patience to wait for the things they want. It has led to a culture of living on loans as most people tend to live beyond their means because our wants exceed our needs.
Easy availability of money through credit cards has changed our attitude about life as we are unable to keep our desires under control.
The millennial population, in particular, finds it most tough to cut their coats according to the cloth – to live within their means. Often, credit cards are not just enough to ensure supply of money, and it becomes a necessity to take personal loans to bridge the gap between demand and supply of money in the personal front. However, it is also true that no amount of crafty financial management can ensure that one would never have any unexpected requirement of funds.
It is always challenging to predict the financial needs in life, and you must be prepared to arrange for funds at the shortest notice so that you can tide over some temporary financial crisis with ease. Life is full of uncertainty and to encounter any unforeseen circumstances; you need quick money. These are times when personal loans come in very handy.
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Meeting the life goals with loans
Borrowing is not bad per se although it is terrible if you become a habitual borrower.
When we plan our life goals, there are specific high-value goals that we want to achieve but not possible without borrowing money. We want to give a decent education to our children, build our own home, own a car, go on vacations with family and do many more things that provide us with fulfillment and happiness in life.
When planning for such big-ticket expenses, it is natural that you have to take loans. Mortgage loans are popular for buying homes, so also vehicle loans help to fulfill your aspiration of owning a dream car.
As life progresses, we want to indulge in luxury and loans are the only way for arranging finances that help to realize our dreams. Borrowing is not bad as long as you borrow in a planned manner for building assets that payback.
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Be ready for the unexpected
Life is full of surprises, and the borrowing discussed above is only one of its kinds that you can plan for. Unfortunately, you would encounter many other situations in life when suddenly one beautiful morning you find that you immediately need a few thousand dollars. Although it is not a guarantee that it will happen, but going by statistics that the majority of people go through such situations in life, it is unlikely that you could be an exception. Moreover, it is always wise to remain prepared for it.
In such situations, you hardly get any time to apply for a loan, such pressing is the need. You wish that someone comes to your doorstep and delivers the cash at that moment. Although this might appear like wishful thinking, you could get the money instantly by availing personal loans.
In fact, personal loans are just created for such situations when you desperately need a small sum of money. Even if you do not know any lending company, getting personal loans is not at all a problem because you can refer to Zippy Loan Reviews to gain access to hundreds of lenders.
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The attractions of personal loans
Personal loans are attractive because it provides you with money just in the way you want and at the right time. When you apply for a personal loan, you need not cite any reason for it. Just ensure that the loan amount remains within the prescribed limits of the lenders.
Usually, you can get a person for anything between $100 and $15,000 and use the money for any purpose, whether for personal reasons or business. The procedure is straightforward and fast, and you can get the cash just within 24 hours or even earlier.
Not only that you will not be required to provide any reason for borrowing, but the biggest attraction of personal loans is also that it does not require any collateral like you have to offer for obtaining home loans, car loans or even business loans. Since you are not pledging your assets, personal loans are safe to avail, and in the event, you default or delay payments, your credit score take a hit.
Personal loans can be both short term and long term but the maximum repayment period is 60 months. Depending on your need you can choose the tenure of payment and the longer the tenure, higher would be the repayment.
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The relevance of credit score
Just as collateral help lenders to reduce the risks of lending, personal loan companies rely on the credit score of borrowers to assess the risk level for lending money. Anyone who has a good credit score is a dependable borrower because he or she has a good track record of handling loans as reflected in the credit score.
Personal loan companies give preference to people with good credit scores, and it is easy for them to obtain loans at lower interest rates and favorable payment terms. You can become the blue-eyed boy to personal loan companies if you maintain a good credit history that also enhances your self-esteem.
However, a good credit score is not always mandatory for obtaining personal loans although it becomes easier to get loans. People with not so satisfactory credit scores can also avail personal loans, but the rate on interest and other terms could be higher as compared to people having good credit scores. It happens because the lending companies would like to cover the risks by recovering more money from borrowers. That is not very bad either, because if you analyze the urgency of money that drives people towards personal loans, getting the money on time is more important than calculating the price that you have to pay.
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Qualifying criteria for personal loans
Anyone having attained the age of 18 years and having some source of regular income, not necessarily some regular job, can qualify for personal loans. You have to declare the dates on which you receive the payments because the lender would like to assess whether you have a steady source of income.
When applying for a loan, you have to submit your details including bank details because once the loan is approved; the money goes to your account. When providing the personal information, you must also submit your social security number.
Since lending is now possible online, you have to submit the loan application online containing all details. The form is usually quite brief and since you need not furnish too much information, providing the form is easy and quick.
The response against your application comes very fast, and you can see through the process as your application moves from one stage to another and gets final approval within hours. After approval, the bank transfers the loan amount to the borrower’s account, and the entire process takes one working day to finish.
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Finding lenders online
Even though you are in a hurry and you want to get money fast, you cannot care less to settle for the best deal regarding interest rates. It is always beneficial to make some comparisons by obtaining multiple offers from different lenders. To do it quickly, you can route your loan application through some loan facilitating company that does not offer the mortgage but can direct you to multiple lenders.
The facilitating company processes your application and spreads it across their network of lenders who start sending offers to you.
In the process, you can make a fair comparison of the offers because different lenders offer different terms and interest rates. Besides ensuring that you get the best deal in personal loan, there is another benefit of applying through loan facilitating companies.
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Borrow from credible lenders
Just as lenders want to check the credibility of borrowers, borrowers too wish to deal with authentic lenders who would not cheat on them. Since the loan facilitating company maintains a network of verified borrowers with a proven track record, you become sure of dealing with reliable lending companies that you can trust. Moreover, the loan facilitating company itself can obtain professional accreditation like OLA (Online Loan Alliance) which is a mark of its trustworthiness.
Personal loans are available in flexible terms and varying interest rates. Depending on the time you have in hand, shop around to get the best deal.
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