Boundless Borrowing: 4 Reasons it is Easier to Get Hands on Personal Loans Compared to Other Funding Options

Personal loans have seen a big surge in popularity over recent decades. At this point, I feel like the entire world must have seen or heard an ad for these at least once. With the number of personal loans taken out growing steadily for years, it’s easy to see that we aren’t just seeing ads - there is more actual USE of personal loans than before!

This is an interesting trend because some of these loans are aimed at emergency users rather than regular borrowers. They can be higher interest than standard loans, so why are they seeing an increase in use? One of the reasons is that personal loans are easier to get when compared with other options. But why is this? Let’s take a look.

  1. Does Not Have to be Secured

Personal loans are generally tied more to credit scores and your income/outgoings than to physical property. There isn’t any need to secure the loan against something like a house or car. There also isn’t usually any need for a guarantor, so you’re able to get a loan without risking either a personal relationship or prized and necessary possession. That’s a big plus for most people. Remember this doesn’t mean you can default without consequences, as you are still legally liable for the debt and your credit rating will also take a beating.

  1. Faster Process Than Some Methods

One of the biggest reasons people use personal loans is to cover emergency expenses. By nature, emergencies are unexpected, so it’s usually true that the cash is needed as soon as possible. Personal loans can often be faster than other methods of borrowing, though not always. Check the terms and conditions of your prospective lender to find out all the details and take it from there. Some lenders will pay within hours, whilst others may take a week or two - it’s all very individual.

  1. Useful for Smaller Amounts

Many of the other options for borrowing are also aimed at bigger cash amounts. These are loans aimed at business users or at people who want to perhaps buy a new car or renovate their homes. The personal loan can easily cover small amounts, such as a couple of hundred dollars for an unexpected pet situation or other emergency. This makes it perfect for those types of users as they aren’t over-extending by borrowing more than what is needed.

  1. Relies Less on Having Good Credit

Usually getting a loan with poor credit is difficult to do. Most lenders will simply see a poor credit rating and hit that big ‘decline’ button. With personal loans, there is more leeway in this area. That doesn’t mean you won’t suffer consequences for having bad credit though. Basically, the lender will just see you as higher risk, so the interest rate will be higher. If you are willing and able to pay these rates, then it is an option for you. Just be sure you can make the repayments, as falling behind can be disastrous!

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