When Are Personal Loans Ideal?

Daniel Joelson

Daniel Joelson

Total Posts: 583

Published Date: December 6, 2021

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Are Personal Loans Good?

A personal loan is a type of loan that can be used for any purpose, we will let you know when personal loans are a good idea. There are some loans meant for specific purposes. For example, a student loan is meant for paying the tuition fees, a mortgage loan is for buying a home, and an auto loan is meant for buying a car.

There are times when taking out a personal loan might not be ideal and there are times when it might be just the smart thing to get.

Despite the fact that personal loans are meant for any purpose, some lenders might still ask what the loan is going to be used for. However, as long as you are using the money for something legal and responsible, you can still use a personal loan for whatever purpose.

I will be highlighting a few circumstances in which a personal loan can be an ideal option.

  • Consolidate credit cards

You can get a personal loan to consolidate the debts on more than one credit card charged to the max into one monthly payment. The interest rate on this type of loan is lower than the Annual Percentage Rates (APR) that you have on your credit cards.

  • Refinance student loans

Refinancing a student loan is a way to ease things financially. The interest rate can be as high as 6.8 or more, depending on your lender and the type of loan. You might also be able to get a personal loan at a lower APR that will allow you to pay off your loans faster.

You can use a personal loan to pay off all or part of your student loan but you will forfeit the opportunity of deducting your interest payments (if you file your income taxes) together with the benefits that are attached to some loans such as deferment and forbearance. However, if your balance is sizable, a personal loan might not cover all. You have to consider all these things to know whether it will be good for you to refinance your student loans.

  • Finance a purchase

Whether you should finance a purchase or not depends on if the purchase is a need or a want. For example, if you want to get a loan to buy an item, you need to decide whether you are going to pay the seller in cash or finance the purchase through the seller or via a high-interest credit card. You need to know which of these options will be a better deal for you. Request for an offer from the seller and compare it with what you will get if you decide to take out a personal loan.

  • Pay for a wedding

Events such as footing the bills of a wedding also qualify as long as you will end up putting all the charges involved on your credit card without paying them off in a month. Going for a personal loan in the case of a big event like this is a good idea as it will save you a reasonable amount on interest rate charges. But the interest rate must be lower than the rate on your credit card.

  • Improve your credit

There are three ways in which a personal loan might help your credit score. First, if your credit report shows that you have more credit card debt, then a personal loan might help your score. If you have different types of loans will also help your credit.

Second, improving your credit will also reduce your credit utilization ratio. The credit utilization ratio is the amount of total credit you have compared to your credit limit. The lowers your credit amount, the better your credit score.

Also, prompt payment of your loan will also go a long way in boosting your credit score.

Apply for Equity Loan at TFC Title Loans

You can apply for a loan with your car’s equity today. TFC Title Loans is an online loan provider that has been in operation for several years, offering affordable loans. Our interest is low and you can get your loan the same day without any delay.

We have designed our loan application to be as simple as it can get. This is why our online loan application portal is opened 24/7 to enable our consumers to have access to our services all round the clock.

This article was brought to you by TFC Title Loans, we try to bring to you the most informative information. If you are interested in getting a title loan local to you, we are able to help you with our large referral network.

We will help you to get the most money by using the equity that you have in your vehicle, the application is fast and we can provide you with same-day funding.

All of our referral partners are in compliance with the CFPB. We will help you to get the money that you need but from a trusted and reliable title lender.

You don’t need to leave the comfort of your home to apply when you can complete the entire loan application online. Once you submit your application online, one of our loan representatives will get across to you as soon as possible to complete your application.

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Disclosures

DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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