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FAQ
Frequently Asked Questions
What Is A Personal Loan And How Does It Work?
Borrowing money from a bank, a credit union or an online lender is called a personal loan. The loan is refunded in annual fixed payments or installments. The bulk of loans are issued over two to five years. These loans are regarded as unsecured loans because they are not collateral-supported. That means the borrower doesn't place any of its properties in a loan fund, which means they don't risk losing their car or other property if the borrower stops paying the loan. The interest rate of secured loans is usually less expensive, but this is because the asset is then in danger.
Is A Personal Loan Better Than A Credit Card?
The interest rate paid for a personal loan is usually significantly lower than the regular credit card charges. The amount of loans you can borrow on a personal loan is also in most cases considerably higher. For certain situations, taking a personal loan and transferring all your credit card debt to one personal loan may be advantageous. This is generally regarded as a loan for restructuring. This will mean that you have only one payment and that you will pay considerably less interest over the loan.
Are there any set conditions for how I use the money once I get approved for a loan?
You are free to spend the money in your bank account when you have been approved for a personal loan and have the money deposited on your bank account. Others would spend money on consolidating other loans, taking a vacation, paying for medical expenses, etc. There are no limitations to how you use the money, it is fully up to you to make your decision.
Does Everyone Qualify For A Personal Loan?
The decision to approve or reject a loan application is based on the individual circumstance of an applicant as creditors are liable for who they lend money to. Your credit rating, your credit report, and your debt-to-income ratio would include the variables we take into account. We make sure that our customers apply for a loan but we also know that we don't want to set you up to fail.
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