In today’s uncertain economic times, more people are reaching out for a personal loan. Whatever your reason is for needing to apply online for loans, personal loans seem to be a popular choice. Here’s why.
- A fixed repayment time frame
If you prefer using a credit card instead of seeking online loans, consider this: African Bank personal loans have fixed repayment terms (you can use the loan calculator to work these out). However, minimum credit card payments keep you in debt for longer. With personal loans, once you’ve repaid the debt, you’re done. So you can enter the loan process knowing how long it will take to repay the debt. You can also pay off the loan early without any penalties.
- You don’t need collateral
If you’ve been considering an additional home loan, for example, you need collateral – be it your house or car. When you online apply for personal loan, you don’t need such collateral. So those possessions you value and worked hard for aren’t on the line. However, do bear in mind that your credit history can be significantly damaged if you default on a personal loan.
- You get rewards for good credit with personal loans
Many loans out there as well as credit cards have standard interest rates and, despite how good your credit might be, you’ll still pay the same amount of interest on your loan as someone with a poorer credit history. But this isn’t the case with a personal loan application. They offer a variety of interest rates so that you’ll enjoy a lower one if your credit score happens to be high. You’ll get to pay back less too and you’ll enjoy more money in your pocket in the long run.
- Fixed Rates mean Fixed Payments
Besides lower interest rates when your credit is good, you have fixed rates on a personal loan. Once you’ve qualified for a low rate on a standard personal loan, it remains as is. This can differ to credit cards and debt consolidation loans where the interest rate can spike and plummet. A fixed rate means fixed monthly payments so you can plan ahead and budget accurately without worrying about the expense skyrocketing.
A personal loan makes things personal
Whether you’re looking for debt consolidation or to pay off an unexpected expense, this type of loan can help to ease financial pressure. It can also motivate you make your repayments in full and on time.
Even if you’re not a guru when it comes to finances, you can probably see that personal loans allow you to get the money you need. And with the convenience and ease of online applications, you can have the cash in your bank account in no time at all.
These are just some of the reasons to consider a personal loan instead of turning to credit cards, traditional loans or other lines of credit. You will enjoy a much better financial deal and get rewards for good credit from reputable and reliable lenders.
Next step: Apply for a personal loan by completing and submitting the form on this page
All info was correct at time of publishing