Are personal loans safe to get? Personal loans are safe to get as long as you apply with a reputable lender. There are some disreputable lenders out there who will try to hoodwink you into a shady deal. But if you know what red flags to look out for, then you can avoid any trouble. Some of these red flags include:
- The lender is not registered to do business in your state.
- The lender does not care at all about your payment history.
- The lender contacts you (over the phone, physical mail, email, door to door solicitation, etc.) rather than you contacting them.
- The lender wants you to have a prepaid debit card.
- The website for the lender is not secure (the URL should have a lock symbol or begin with https).
- The lender puts pressure on you to act quickly.
- The lender does not have any kind of physical address.
If the personal loan lender you are currently talking to does one or more of the listed actions, then you should be wary and start looking elsewhere for a personal loan. If not, you could end up in a whole heap of trouble.
Are Personal Loans Safe and What Benefits Do They Have?
There are Immeasurable Uses for Them.
Personal loans are popular because they have less strict rules that go along with them, unlike student loans, mortgages, auto loans, or even student loans. Unlike the aforementioned loans, personal loans are allowed to be used for financial support in varying ways. They can be used to buy groceries, hire a handyman for a home repair, or just to pay off some bills that have been piling up and need to be tended to ASAP.
There are Varying Loan Amounts You Could Borrow.
Depending on how much money you are currently in need of, odds are there is a personal loan out there that can help you cover it. There are some personal loans for only a few hundred dollars, such as payday loans. However, there are other personal loans that can get pretty high, reaching amounts like $100,000.
Collateral is Often Unnecessary.
Many kinds of personal loans out there are unsecured loans, which means that they are not secured by any form of collateral. If you do not want to risk losing your house, car, or any other valuable asset that is currently under your ownership, then this may come as a huge relief for you. Furthermore, if you do not have anything to produce as collateral, these kinds of loans may be easier for you to qualify for in order to get the funding you need.
Flexible Repayment Terms with Personal Loans.
Depending on the personal loan you are trying to get, there are many kinds out there that will offer you a significant amount of time to repay them. There are plenty of lenders out there that will understand that borrowers cannot always come up with the money they need in order to pay back the loan all in one go. Due to this type of situation, repayment for personal loans is usually broken down into multiple manageable monthly payments. These repayment terms will last anywhere from two to five years.
Some Personal Loans Come with Fantastic Rates.
Sometimes you may need a loan that is more affordable than using a credit card. This is where personal loans can be a real help to you. You do not need to have a good credit score for several types of personal loans out there. But there are several personal loans that will reward you for good credit with an APR that can get as low as 5%. To many folks, this is preferable to having an average APR of 13%, which usually comes along with most credit cards.
Bad Credit May Not Hold You Back.
It is understandable to be hesitant to apply for a personal loan if you do not currently have a good credit score. However, it is still possible to get a personal loan despite having low or unestablished credit. There are several lenders who don’t do credit checks. when you apply for a loan with them. This can be advantageous and useful to people who are trying to get a leg up financially due to money-related troubles they may be facing.
So, are personal loans safe to get? Learn more about personal loans and what options could be available to you online! Max Cash® is here to help.
