Personal credits in the USA are provided by various creditors – banks, MFIs, microcredit companies, etc. Nowadays, they have simplified the process of issuing loans as much as possible, which makes the idea of getting personal credit very attractive. However, before applying for money, it is worth evaluating the pros and cons of this decision.
Pros and Cons of Personal Loans
In general, the advantages of obtaining loans are the following:
Fast processing – about 5-60 minutes are spent on obtaining a cash loan. If applying for a loan online, this procedure is even faster. Access to the service is available around the clock.
The high percentage of approvals – zaplo and many other companies have reduced their requirements for borrowers. Today, creditors even lend to individuals with current loans or damaged reputation. Due to this fact, the probability of obtaining credits is close to 95%.
Minimum package of documents – if the personal credit is small, then you will only need the basic docs to provide.
Of course, getting consumer loans has some disadvantages:
Overpayment – they are hidden in rates, commissions, and insurance.
Short grace periods.
Each financial product has extra fees, interest rates that increase the real cost of the credit. These funds cover the wages of the stuff, the rent of premises, and problem loans. Knowing what the fee is charged for and how payments are formed, one can choose a favorable consumer loan without significant overpayment. That is why you need to rely not on advertising but on your own mindfulness.
Terms and Conditions
The obligations of the parties, including the schedule and methods payment, are prescribed in the agreement. For short-term loans, the debt is paid in one or more transfers before the due date. Long-term loans are usually paid monthly. To reimburse funds, the creditor company develops a schedule in which the amounts of payments and the dates of their closure are indicated. For the convenience of the customers, there are several ways to pay-off loans:
by online banking;
by card on the creditor’s official website;
in cash at the cash desk of the creditor’s company;
in cash via the payment terminals.
The first three methods are carried out instantly. The last one may take up to three working days.
With the early repayment of loans, most financial institutions make a recalculation. However, some organizations charge a fee for early repayment. This condition should be prescribed in the contract.
Finally, before borrowing money, you need to assess your solvency by comparing income with expenses. Payments on the loan should not affect your comfort. An acceptable amount of debt is one that can be repaid without limiting the usual purchases. If the money that remains after paying utility bills, buying food, and the most necessary things is not enough for a monthly payment – forget about the loan.