With these benefits, it is quite clear to see why this option is very popular. When financial needs are pressing, individuals are known for applying for credit to ease their burdens. Compared with other credit options in the market the personal credit option is considered an unsecured borrowing and it is relatively easy to apply for. You can even do a quick online search and find many lenders providing these schemes with varied benefits.
But like any other credit option quick personal loans to have their advantages and disadvantages. And it is a good idea to understand them before you make the decision to apply.
- Unsecured nature: this type of borrowing requires no collateral to be kept. That is why they are called unsecured. Therefore you need not worry about pledging your car, house or any other assets in order to get the cash that you need. Since there is no collateral, the lender will not ask for any you can freely apply for any amount of cash you require at an interest rate you are comfortable with.
- Flexibility of use: there are some credit schemes such as vehicle loans that can be used only for that said purpose. But these personal credit options can be used for whatever purpose you may require them for. You can use it for education, renovation, holidays and even for your wedding, so they are super convenient.
- Approvals don’t take long: quick online cash loans mostly approved on the spot or you can expect approval within 24hours. Since the applications are processed online, the lenders have very little paper work to process and they can proceed relatively quickly. Most often the lenders have only a set formula or a set of questions to ask the borrower which they can do very easily online, making the application and approval process very fast.
- Better rates: unlike other options, these borrowing are done on small scale so you will not be charged huge interest rates.
- No partial payments: even if you have the money in hand, you cannot pay these loans partially; you need to go on for the entire timeframe it was taken on. When you look at it this way, it can be somewhat long overdrawn especially because the first instalments you pay cover only the interest and not the capital.
- You can still get sued: even though you do not pledge any assets when you get the loan, the bank or the lender can still go to court if they find that you are not paying as promised. This can be a major issue as you will have to incur late payment fees as well as pay for court proceedings as well.
So looking at these it is always important to be sure you have the necessary funds coming in before you apply for long term credit under this scheme.