Finding a personal loan when you don’t have the best credit report can be frustrating, daunting and plain embarrassing. There is nothing worse than being laughed at by your bank manager when you desperately need cash for those unexpected emergencies.
There are a number of ways to secure the personal loan you need from various sources. The first step is to determine how much you need and how much you can afford to repay each month. Remember that any lender is going to put interest over and above the amount you choose, which means you can expect to pay a higher amount in the end. Knowing what you can realistically afford to repay each month can help you identify the best options and ensure you don’t dig yourself deep into debt on a monthly basis.
The first place you can try and get a personal loan is your everyday bank. Bear in mind that banking institutions are making it harder to borrow cash. This means that you need to tick certain boxes, one of these is to have a stellar credit report. Some banks even
The most advantageous factor of a personal loan is that it is very easily available. This is because the lender of a personal loan does not have many compliances to follow. The lender asks no questions and there is no criteria that has to be met by the borrower. However, there is a downside. This is very much unlike the loans taken for education and housing. The downside is that personal loans come with a very high rate of interest. Thus most of the financial experts advise against taking of these loans.
When to go for a personal loan?
There are a few circumstances in which you can easily go for this kind of loan. However these circumstances can also be termed as rare. These are as follows.
– You should not take a loan to purchase any expense that is consumption based. This includes buying a TV or a car. You should also not even think of funding a holiday by taking a personal loan.
– You can opt for this type of loan only during cases of emergency. You must however do this only if
When unexpected emergencies or expenses arise, we may sometimes find it difficult to obtain the cash we need. This is particularly true for people living under a stringent budget every month. Some people are also highly dependent on their salary for survival. So when emergencies strike, they tend to loan money from friends and family members. The problem is – there is no guarantee that someone would lend them the money every time it’s needed. So what can be the next option? You can opt to apply for cash advances.
Personal Cash Advances
This is one form of short-term loan which aims to offer loanable cash to people who are in dire need of it. It can be in the form of a payday loan which makes it payable within a short period of 14 days or up to the next payday. Some cash advance providers may offer longer repayment cycle especially for the non- first timers. The amount of cash you can borrow may vary depending on consumer practices of the state.