Loan Options that Benefit You More than the Bank
Friday, Sep 15, 2017 10:18 AM

You did good.

This holiday season, you bought the perfect gifts for everyone. The smiles on the children's faces tell the story. So what if it cost a little more than planned? It was worth it.

Until you get your next credit card bill. No good deed goes unpunished, right?

Not if we can help it! Now may be time for a personal loan.

A personal loan is a great way to consolidate your credit cards, gain access to more cash at a lower cost, and plan your debt freedom in a series of lower costs installments so you can pay it down while still enjoying your life.

Going to the right place, like Compare First, means you get the maximum amount of options to choose which is the right loan for you. Why go to a single bank that will give you a single rate, when you can compare and shop for what's best for you, and not them.

There are several advantages to taking out the right personal loan:

  • You can use the money for what you want. For a home loan or a car loan, the money must be used for a specific purpose. What if you get a better price? Should you have to give back the rest? With a personal loan you can use the money as you like, even if the bank may not approve of a monthly "spoil myself" day.

  • You get your money quickly. No need for a trip to the bank. Fill out a loan application online, get an instant rate, and get funded within 24 hours. Money can be wired directly to your account. Personal loans are perfect for emergencies like a car repair, or medical bills.

  • No collateral necessary. You don't have to risk something that is already yours. You will get the money based on your credit score. If you don't pay the loan, your score takes a hit, but you keep your car.

  • Forced into Something Better. You can consolidate your credit card loans into one personal loan, especially since according to the Federal Reserve the average personal loan costs 30% less to service than the average credit card. You make one payment, and over time you pay off the loan. As you make timely payments, and pay the loan in full, your credit score will rise, and your future interest payments will fall.

  • Lots of Options to find what's best for you! At Compare First, you get a list of all the places you are pre-qualified to borrow money for. Find the place that's best for you, and pay the least amount possible.

Mitigating the Risks of Personal Loans

As with any type of credit, there are risks involved. However, if you know how to minimize them, you can enjoy a healthy return on your investment.

Personal loans, because they require no collateral, are less risky. If you are not happy with the rates being offered, you have additional options. You can get someone to cosign the loan. It can be a parent, sibling, or good friend. If they have good credit score, the lender will reduce the interest rate, making installments easier to manage.

For personal loans, it's a little harder to transfer the debt somewhere else. The advantage is you can pay down everything in one payment, eventually achieving debt freedom. You can budget your money carefully, and reduce what you spend without impacting your quality of life.

Bottom line, personal loans are a great way to consolidate debt, reduce monthly costs, and get cash quickly. The key is to make sure you know all your options to get the loan that best for you.