Personal loans are one of the best solutions to your financial needs. Their high demand doesn’t mean people do not get the misconceptions of it. Misconceptions are misconceptions – they are just inevitable. Be sure to know the truth. Here are some of the myths about personal loans.
1. Personal loans are not necessary alongside existing loan(s).
One of the things to consider by the bank is your ability to make the loan repayment. Having too many loans or credit card bills doesn’t mean that you are not entitled to benefit a personal loan. Debt consolidation could give you a better control over your debt.
2. The interest rates are unreasonable.
The interest rates of loans that are without collateral are usually higher in comparison with collateral loans. Remember, personal loans are unsecured loans or loans without collateral which do not need any assurance or a guarantor. Hence the banks would be holding a higher risk in the event the loan is defaulted.
3. I can apply more than I actually need.
Personal loans should meet your requirement. A loan amount should be equivalent to your ability to make the repayment. You should not be offered something which you can’t afford. This is to ensure you have savings on unnecessary installments and benefit other loans in the future.
4. Applying for a personal loan at various lenders increases the chance of loan approval.
It’s not a wrong thing, but it’s always a smarter idea to do one thing at one time. This will result in your application process being delayed. Your application is also more likely to be rejected. Remember, the lender is required to evaluate your eligibility for your loan approval.
5. Loan approval totally depends on your credit rating.
Your credit rating is just one of the contributing factors to the approval of your loan application. There are some other factors to be evaluated by the lender such as income level, type of the company you’re working for and overall financial history.
Read More : http://MyFinance.com.my/articles/detail/7211041405
We also provide other various Financial Information such as, MyFinance Budget Portfolio, Personal Finance, Housing Loan, Personal Loan, Credit Card, Sharper Shopper, Calculators. For more information please visit our website MyFinance.com.my.
No comments:
Post a Comment