4 Personal Loan Myths Debunked

There are numerous personal loan myths making the rounds and it’s important to separate fact from fiction if you plan to borrow. Here are the biggest personal loan myths debunked.

Myth 1: Personal Loans Are Only For People With Excellent Credit

This one is just not true. Yes, if you have a high credit score, you have more personal loan choices. And you qualify for lower interest rates. But there are also personal loan lenders that specialize in lending to people with lower credit scores. You want to shop and compare loans from companies that work with consumers with credit ratings like yours. And that goes for all consumers, in every credit score tier.

Myth 2: Personal Loans Are Always Expensive

One of the most prevalent myths is that personal loans are always an expensive way to borrow money. Because you can apply for a personal loan through your local bank, credit union, or online lender, the competition for your business is fierce. That means most lenders want to be the ones to tempt you into borrowing with their interest rate and loan terms.

If you have a good credit score and plenty of income to cover the monthly payment, you can snag a personal loan for far less interest than you might pay for an auto loan — and certainly less than you’ll pay on a credit card.

Myth 3: You Can Only Have One Personal Loan At A Time

As long as you have the income to repay more than one personal loan, there’s no reason you can’t take out another. As long as your repayment capacity is the same as it was when you took out your last loan and your credit score is still high, there’s nothing keeping you from carrying more than one unsecured personal loan.

Myth 4: It’s Hard To Get Approved For A Personal Loan

This is another of the biggest personal loan myths that’s easy to believe but entirely wrong. In fact, applying for a personal loan these days is as easy as filling out an application online and waiting anywhere from a few minutes to a few days for approval.

Compared to getting a car loan or a home loan, getting approved for a personal loan can be a much simpler process. And it starts with comparing your options for personal loans with variable and fixed rates.

If you are looking for a personal loan between Rs 1000 and Rs 1,00,000 then you can also try the SmartCoin app. You can receive the loan amount within a few minutes.