NEW YORK, March 05, 2022 (GLOBE NEWSWIRE) — Personal loans let borrowers take out money for a variety of purposes, like restocking their emergency fund, refinancing high-interest debt, or even making a big purchase. These loans are flexible, offer quick funds, are available online, and don’t necessarily require borrowers to provide collateral.
But before getting a personal loan, borrowers should understand some basic details about them so that they can have a good repayment plan in place and avoid making any financial mistakes. Here are four important things borrowers should know about personal loans before they decide to take one out.
1. They’re available in store and online
Personal loans are available in person at bank and lender branches, but they’re also available online through banks, lenders, and P2P marketplaces. This means that borrowers have the option to apply and get funding online from the comfort of their homes.
People who prefer personalized help and working face-to-face with a lender should apply in person. On the other hand, borrowers who want a quick and convenient experience should find an online lender.
2. There are several types
There are many types of personal loans, including:
Installment loans
Installment loans let a borrower take out a lump sum of cash at a specified interest rate and pay it back in monthly payments of principal and interest. These payments are fixed, making them easy to budget for. Borrowers often use installment loans for refinancing or large purchases.
Cash advances
Cash advances give borrowers a few hundred dollars to cover expenses before they receive their next paycheck. These loans tend to last two to four weeks, and many lenders offering them have more lenient credit score requirements.
The borrowers will repay the cash advance in full plus interest when the loan comes due. They can sometimes roll over the loan for another two to four weeks by paying an additional fee. Borrowers…
The post Advance America: 4 Things to Know About Personal Loans – Press Release appeared first on CaymanMama.com.
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