Personal Loans : Three Lies You Hear from Lenders
Personal loans can help you and other consumers get out of many pinches – financial pinches where you need money for a purpose that you cannot obtain another type of loan to fund. Unfortunately, not every lender for personal loans is upfront and honest when trying to get you to sign on the dotted line. While this article is not intended to totally deter you from using personal loans, it serves as a warning to some signs that the lender may be lying to you or, at the very least, misleading you. Beware of overly general or limiting statements. Remember the old adage: If sounds too good to be true, then it probably is.
“We Finance Everyone”
If a lender were, in theory, to approve everyone who applied for personal loans, the lender would quickly be out of business. Therefore, it is virtually impossible that “everyone” gets approved. Again, this shouldn’t hold you back from applying for a personal loan, but be aware that denial is a possibility. Similar statements include, “No credit, no problem” and “Bad credit, no problem.” Some situations occur where there is a problem, even when you fall into one of the categories the lender says it serves.
“No-hassle Loan”
Obtaining a loan of any kind is a hassle, and personal loans are no exception to the rule. Personal loans require you to complete upfront work, which includes completing the loan application and gathering any additional documents the lender requires you to submit with the loan application. Some personal loans are easier to obtain than others. Some loan processes are streamlined, while others still require applicants to essentially jump through hoops. In the end, nobody truly enjoys the process of applying for and obtaining personal loans, so “no-hassle” is not a truly applicable adjective to use to describe the process.
Affordable Personal Loans – Apply Here
Affordability is subjective, so a lender cannot assess whether you are able to afford the loan or not until they review your financial situation for themselves. In general, when it comes to interest rates, personal loans carry higher rates than other types of loans. This makes personal loans less affordable in comparison. Now, if a personal loan is your only option, then a higher interest rate may not factor into the equation, but if you have the option between taking out an equity line and obtaining a personal loan for your money needs, you may want to opt for the more affordable option. Personal loans may be the more affordable route for you, but determine this based on your own assessment rather than being lead by what the lender is telling you.