Whenever you are in a situation of drowning in credit card liability and high interest, and you do not have the money to make major purchases, personal loans with low-interest rates are a big help.
However, because there are many lenders that give personal loans, the best place to get the lowest rates can be harder to find. Green Touch is an aggregator and we collect many lenders under one roof. When you submit a form to us, all these lenders consider your application and any of them may take you on as a borrower.
Aspects of Personal loans
- Can be sourced at banks or private lenders
- Consist of interest and principle. The higher the interest is the faster you should repay the loan to avoid a cycle of debt.
- Can be for any time period. Shorter loans tend to attract the highest interest rates.
- Repayments on longer loans tend to be monthly. Short term loans can even require weekly payments.
- The amount depends on your creditworthiness and the lender’s profile.
- Can be made the next day, to a few days depending on the situation.
- Credit checks are always required. For loans with collateral, these are less important.
Always check the terms and conditions of the lender which will be stated on their web page.
Advantages of personal loans
- Your loan is in cash on your account, as opposed to a credit card limit. This might be useful when dealing with building contractors who may not accept credit cards.
- The application is fast and uses a soft pull method which means your credit rating is unaffected. Several lenders will consider your application.
- Depending on the loan period, interest rates can be favorable in comparison with credit cards. Longer loans tend to have the lowest interest rates as the setup cost is less important on larger amounts with longer repayment times.
- A personal loan is a one-time event and when it is repaid it is over, whereas credit cards tend to extend the cycle of debt by making spending easier.
- Repaying a personal loan can improve your FICO score and make your next loan cheaper.
- You can prepay early and not attract penalties.
Customized personal loan
Higher interest online loans offer several benefits, including:
- Poor credit scores are not necessarily a deterrent to lenders – poor credit prevents many people from taking out a loan, because they think incorrectly that their credit score is important.
- Loans are processed very quickly. Same day is possible, but usually loans are in your account on the next business day.
- Traditional collateral is not required, although you might have to base it on your next paycheck.
- It exceeds traditional borrowing in ease and speed.
- Confidentiality is assured and your credit rating is unaffected.
- It is a useful way of reacting to financial emergencies
- Acceptance rates for quick personal loans is very high.
Sources of personal loans:
Credit unions offer competitive interest rates as they are owned by their customers, but the downside is you need to be a member to get a loan.
Online lenders like Green Touch
Online lenders operate in a very competitive space and tend to compete on interest rate, execution speed, repayment flexibility and response times. These loans carry high interest rates so they should only be used in the short term However they are a useful option if the amount you wish to borrow is under $1000 because a bank may not be interested in the work required to set up such a small loan.
Banks offer low interest rates but applications directly affect your credit score. These kinds of loans have strict conditions and banks tend to take their time making loan decisions and prefer to lend larger amounts with longer repayment times.
Consider your options. If you want speed and flexibility online loans are the best choice, with payday loans tending to be under $1000, and installment loans for larger amounts with longer repayment periods. If you have more time and the amount you wish to borrow is higher than $5000, consider a bank or a credit union.
Home page – Green-Touch.