Explicit Finance
Personal loans include a lot of different products known by a lot of different names, but they are all meant for much the same purpose.
There was a time when your choice in personal loans was severely limited. Most loans had much the same conditions, fees and interest rates. That’s changed. Competition in personal lending means that now consumers have much more choice how they spend their loans. You can get loans for holidays, to add a deck, to buy a car, even to consolidate your debts.
Why do you need personal loans when you’ve got credit cards, especially now that competition has forced interest rates and fees on credit cards to fall? After all, credit cards are such a convenient way to manage your personal spending. For many people, that can be just the trouble with credit cards—they’re too convenient, sometimes leading to spending more than you can afford. On the other hand, purchases made with loans tend to be much more thought out and planned and budgeted for.
Have you ever tried to buy a car or other big ticket item with a credit card? Good luck! Even if it is within your credit limit, most sellers will decline.
Competition from credit cards has, however, forced personal loans to become much more user-friendly than in the old days. Instead of waiting days or weeks for approval, you can now get conditional approval the working day after receipt of application, or even faster with online applications. They usually carry a fixed competitive rate which doesn’t vary over the term of the loan, which can be anywhere from one to seven years. You should pay only one low establishment fee, with no ongoing fees and, within limits, no fees for early repayment. Repayments can be weekly, fortnightly or monthly and direct transfers of salary or from a bank account can be arranged. Some come with a redraw facility. All this makes them ideal for managing your personal finances.
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