12 May 2017
Here’s Why You Should Consider a Personal Loan
You may not have considered taking on a loan before (especially if you have a couple of credit cards). Perhaps the whole idea seems a bit scary or unfamiliar to you, or maybe you’ve been dissuaded by a few horror stories.
But personal loans are a very powerful thing for an individual’s financial profile – homeowner or otherwise. Taking on and paying off loans can do wonderful things for your credit score, and they tend to make more financial sense than credit cards due to the lower interest rates and flexibility.
Things to consider
If you need the money and you’re able to pay it off on time, you should very strongly consider the personal loan as your best option. If you can pay more than the minimum required repayments, you’ll do even better.
As long as you give your financial situation due consideration, a personal loan can be a very powerful way to invest in an asset (like a home), make a big purchase or anything else you can think of.
Here are a few reasons why the personal loan could be the most powerful tool available in your financial arsenal:
Interest rates
Personal loans typically have lower interest rates than credit cards, which means that you can use a personal loan to consolidate your debts.
Rather than carrying the debt on a comparatively high interest credit card, you can take out a personal loan to pay it off and then pay back the loan instead. You’ll be paying off the same debt, except with smaller monthly payments and lower interest.
Credit profile
Taking on a personal loan would diversify your credit profile, further demonstrating your reliability in making payments to future lenders and other institutions.
In addition to diversification, personal loans can improve your credit profile if used to consolidate or pay off other debts.
Flexibility
Dedicated credit accounts suffer from a lack of flexibility, whereas a personal loan can be used for just about anything. Among these uses are: Paying cash in cases where credit cards aren’t accepted, taking advantage of cash discounts and more.
Mortgage House
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of taking out a personal loan, you can contact us for advice about the best options for you. Personal loans can drastically affect your financial planning, so it pays to speak to the experts about it.