Loans are normally intended for the purchase of a specific asset: the house is purchased thanks to a loan called a mortgage, the car with a car loan. With a personal loan, you can buy anything; sure, for some lenders it is necessary to specify what you will do with the money they lend you. In general, with the money borrowed, as long as the reason is legal, you can do whatever you want. The difference between the personal loan and the finalized loan is the guarantee. With the mortgage, the house itself is the guarantee. Just like the car you buy is the auto loan guarantee. The collateral on the personal loan, since it does not exist, means that the interest rate will probably be higher. If desired, there are also secured personal loans if you wish to cut costs. In other words, personal loan would not seem convenient. Instead here are five cases, where personal loan could prove to be a good option for you.
Credit Card Consolidation
If you have some credit cards charged at the maximum, you may consider to get a personal loan in order to consolidate all your expenses into a monthly payment. This option seems to be more appealing if you consider that the interest rate on the loan could be considerably lower than the annual percentage rates (APRs) on your credit cards. So, the risk here is feeling less stressed about your newly available credit limits that you load more on to your cards before the loan is repaid.
You may also like
Home insurance, what it covers and why it’s worthwhile
When it comes to home insurance, the reaction is almost always the same: there is a tendency to make doubt and skepticism the mainspring of every choice and rather than investing in a guarantee, you give up a priori to make an expenditure, often considered unjustified. One should, instead, abandon all cultural conditioning and persuade… Continue reading Home insurance, what it covers and why it’s worthwhile
Pet Insurance: why it is the best choice
Pet policies are gaining momentum in the insurance industry. Thinking about a coverage both for our friends and for those who have or will have to do with them means getting a total protection against any inconvenience that may occur. Let’s think, for example, of the possible damage that one of our pets could cause… Continue reading Pet Insurance: why it is the best choice
Why it is important to make a life insurance
Life insurance can be very beneficial: here’s what it is and what types exist. The subject is morally challenging, as feelings such as conscience, love and affection for family members are the driving forces behind this investment. In fact, life insurance is a gift that is given to those who love themselves and their loved… Continue reading Why it is important to make a life insurance
Black box car insurance: what it is and how it works
If you are looking for a quick way to save money on your car insurance policy, know that the solution is really at hand. In recent years, black box car insurance has appeared on the market, able to guarantee practical and economic advantages to customers. Save on car insurance by installing the black box Let’s… Continue reading Black box car insurance: what it is and how it works