What You Should Know About Personal Loans

I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster.

What is a personal loan?

A personal loan is a form of credit typically used for a specific purpose, such as purchasing a vehicle, financing a holiday, consolidating debt, or renovating a home.

You borrow a specific amount and make regular repayments to your lender. By the end of your loan term (usually between one and seven years), your loan is fully repaid.

A personal loan is a less flexible form of credit than a credit card and typically does not offer additional benefits such as warranties and purchase protection, rewards, travel benefits etc.

However, the interest rate charged is usually lower than that of a credit card and is often negotiable with your lender. Personal loans also have a repayment schedule, meaning you will eventually repay your loan in full and you can easily factor your repayments into your budget.

Before you apply for a personal loan, make sure you are loan ready. Check your credit score and credit report to assess your credit worthiness. Ensure there are no errors in your credit file that could prevent your application from being approved.

Also, read your entire contract carefully so you are not caught out by unexpected interest rates, fees, or fine print.

Variable personal loan

A variable personal loan charges an interest rate that is subject to change. As such, your repayments may vary during the life of your loan.

Many variable personal loans allow you to make extra repayments towards your loan in order to repay it early. Some also allow you to access these funds via a redraw facility and use them for other purposes.

Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article HERE and share your thoughts with me afterwards: call (07) 3465-9259 or email me at [email protected].

Thanks,

Craig