Personal Loans: The Pros And Cons Of Getting One
July 20, 2020 | Emma Frost
No matter who you are, there are times in life where you just have to face it – you need some extra cash. And no matter how much you may need some extra cash, that doesn’t make it any easier to actually get that extra cash. Yeah you can sell some things and take up a second job – but that isn’t always possible to do. And even if you do end up getting a second job, you still need that extra cash quick. That is definitely a situation that’ll raise your stress levels. When you do need some fast cash you should start doing your research on fast loans. One of those loans are called personal loans. These loans – what you can call similar to title pawns in Georgia – can get you the quick cash you need so long as you are approved.
What Is A Personal Loan?
A personal loan is a loan that you pay back in monthly payments. With a personal loan you have two types: a secured loan and an unsecured loan. A secured loan is a loan that requires collateral in order for you to get that loan. These are most similar to title pawns – or could be called title loans in other states – because you need a vehicle title before you can get this pawn. If a secured loan requires collateral, then an unsecured loan obviously means a loan that does not require collateral for you to get this loan. There are many reasons why you should and should not get a personal loan. These are important pros and cons to know before you go and apply for a fast personal loan.
The Pros Of Personal Loans
You Can Use Them For Multiple Situations
Just like you can use title pawns for major situations like emergencies or unexpected situations, you can use personal loans for a number of different, important situations. Things like emergencies, paying off late bills, your car, or your necessities are all things you can use personal loans for. Another way you can use personal loans is for debt consolidation. This means you take out one large lump sum of cash and use it to pay off all your other debts. This leaves you just having to pay back the loan instead of having to keep up with all your forms of debt. Title pawns differ when it comes to debt because it is recommended not to use this pawn to lower your debt; it is designed to make emergencies more manageable.
You Don’t Always Need Collateral
Like I said, if you are interested in an unsecured online personal loan, you do not need to worry about needing collateral in order to get that loan. You don’t need things car titles, home title, or any other form of collateral. Your lender will look at your credit history and things like your debt-to-income ratio; this basically means how much income is coming in versus how much is going out. They look at these things to make sure you can still repay them their loan on the correct schedule. Even if you do opt for the secured loan – or title pawn – it is still quick to go through the process as long as your vehicle’s title is in your name.
You Have Time To Pay Back Your Loan
The best part of a personal loan is having time to pay back the loan. Being able to pay back your loan in small increments can make paying back a lot more manageable than if you had to pay it all back in one time. Like title pawns come with a repayment schedule, your personal loan also comes with a repayment schedule that you can easily follow. As long as you are keeping up with the schedule and the amount – or even paying more than what you have to when you can – you will be able to keep your credit score in check and keep yourself from going crazy with financial problems.
The Cons Of Personal Loans
You Have Certain Ways To Use Your Personal Loan
Just like personal loans come with a ton of pros, you also have the cons to think about. Even though I said you could use your personal loan in multiple ways, that doesn’t mean you can use it for every single way, just like an auto title pawn. If you think you could use it for things like paying for your wedding or recreational spending – you shouldn’t. These loans – if not used properly – will put you in debt and can hurt your credit. You have to be careful with how you plan on using it and make sure you can stick to the repayment schedule. So before you get this loan for just any and every issue, you have to keep this in mind.
You Have A Set Repayment Amount
Just like having this set repayment amount and schedule is a pro, it can also be seen as a con. You have to make sure you are able to stick to this repayment schedule and amount. If you find yourself in a stable financial situation, you can even pay more than the set amount to get your loan repaid quicker; but you certainly should not go below the discussed amount. If you think following a certain repayment schedule and amount is going to be too difficult for you, then maybe you should rethink actually getting yourself into a personal loan.