fbpx
Skip to main content
  • Debunking Common Myths About Personal Loans

    2019-11-07T14:12:53-06:00By |Audio Available, Personal Finance|

    Personal loans are often misunderstood. Many people, especially first-time borrowers, have doubts that may prevent them from reaping the benefits of a personal loan. Have you been taken in by any of these myths?

    Myth: Personal Loans Are Only for People Who Are Employed

    Steady employment can help you repay a loan, but it’s not required to get a loan. If you’re self-employed or a private business person, you may still be eligible for a personal loan.

    Myth: It’s Difficult to Apply for a Personal Loan

    Some people think personal loan applications are tedious and time-consuming. In fact, personal loans often require less documentation than most other types of loans, and the process is fairly straightforward. Want to ensure it goes smoothly? Make sure you have all the documents and information when you’re ready to apply. If you have questions about what you’ll need, just contact us.

    Myth: Getting Approved for a Personal Loan Takes a Long Time

    A personal loan is actually one of the best options when you need money quickly. Approval is as fast as one business day, and borrowers typically receive their money in less than a week.

    Myth: A Personal Loan Can Only Be Used for Personal Expenses

    You don’t have to use the money for personal expenses. While it’s a good way to accomplish personal goals, like debt consolidation or paying for a major life event, a personal loan can be used for nearly anything.

    Myth: To Get a Personal Loan, You Must Have a Stellar Credit Score

    A good credit score can get you a better rate, but people with lower credit scores are often eligible for a personal loan. If you’re turned down for a personal loan, it’s probably due to a large amount of outstanding debt, or a lack of income to cover the monthly payments.

    Myth: Personal Loans Require Collateral

    While secured personal loans that require collateral are available, they’re not as common unsecured ones that require no collateral. Most modern lenders now look at things like the borrower’s income level, credit history, and credit score when making a decision on a loan application.

    Myth: Personal Loans Trap a Person in Debt for a Long Time

    The truth is, many lenders offer flexible payment options that allow borrowers to repay the debt in about one to five years.

    Myth: It Doesn’t Matter Where You Take Out Your Loan

    There are many different places to take out a personal loan, so shop around and find a lender that offers low rates, personalized service, and transparency of information. Once you find a trustworthy lender, you can confidently take out a personal loan to help you reach your financial goals.

    Now that you know the facts, take a look at the details. Check out our personal loans page to see our rates, perks, FAQs, and more!

    Borrow Money and Make a Difference

    For a limited time, if you get a Personal Loan, you'll get a special rate and Connexus will donate $100 to Toys for Tots7.

    Learn More

    Comments