Personal loans in the USA are provided by various creditors – banks, MFIs, microcredit companies, etc. Nowadays, they have made the credit granting process as easy as possible, which makes the idea of getting personal credit very appealing. However, before asking for money, it is worth weighing up the pros and cons of this decision.
Advantages and disadvantages of personal loans
In general, the advantages of obtaining loans are as follows:
Fast processing – approximately 5 to 60 minutes is spent on obtaining a cash loan. If you are applying for a loan online, this process is even faster. Access to the service is available 24 hours a day.
The high percentage of approvals – zaplo and many other companies have reduced their demands on borrowers. Today, creditors even lend to individuals with outstanding loans or a damaged reputation. As a result, the probability of obtaining credits is close to 95%.
Minimum package of documents – if personal credit is low, you will only need the basic documents to provide.
Of course, getting consumer loans has some drawbacks:
Every financial product has additional fees, interest rates that increase the real cost of credit. These funds cover the salaries of equipment, rent for premises and problem loans. Knowing the amount of fees charged and how the payments are made, one can choose a beneficial consumer loan without a large overpayment. That is why you should trust not the advertisement but your own attention.
Terms and conditions
The obligations of the parties, including the timing and terms of payment, are prescribed in the agreement. For short-term loans, the debt is paid in one or more transfers before maturity. Long term loans are usually paid monthly. To repay the funds, the creditor company draws up a schedule in which the amounts of the payments and the dates of their closing are indicated. For the convenience of customers, there are several ways to repay loans:
through online banking;
by card on the official website of the creditor;
in cash at the creditor’s company cash register;
in cash via payment terminals.
The first three methods are executed instantly. The last one can take up to three working days.
With early repayment of loans, most financial institutions recalculate. However, some organizations charge a fee for prepayment. This condition must be provided for in the contract.
Finally, before you borrow money, you should assess your creditworthiness by comparing income to expenses. Payments on the loan should not affect your comfort. An acceptable amount of debt is one that can be repaid without limiting usual purchases. If the money left over from paying utility bills, buying food, and the most essentials isn’t enough for a monthly payment, forget about the loan.