If you need money for emergencies, financing large purchases, or consolidating debt, a personal loan is an answer to that. A personal loan is one of the best options available because you can pay it back in installments. However, there are people who are still scared to apply for a personal loan because of some myths. If you’re one of those persons, check out the personal loan myths you shouldn’t believe.
Personal Loan Myths You Shouldn’t Believe
Personal Loan is for employed only
Employed persons have a better chance of getting approved when applying for a personal loan, but it doesn’t mean that self-employed can’t get approved. Loan providers check all the applications, regardless if you are self-employed, as long as you are capable to pay them back, they will surely approve your application.
Many people believe that applying for a personal loan is complicated, they think that will take a lot of time, effort, and paperwork but actually it’s not. There are personal loan providers that require minimal documents and once you submitted all the required documents, your personal loan will be approved right away. Just be patient in finding the best personal loan provider for you.
Approval takes too much time
The usual loan processing time is between five to seven business days but due to technological advancement, some loan providers approve applications within a day or an hour. As long as you are eligible, your application can be approved right away.
Good credit score is a must
It’s true that a good credit score is a plus point in getting approved for a loan. Especially if you’re applying for a loan in a bank. But there are personal loan providers that don’t require a good credit score, they will only require you to submit proof of identity and proof of stable income.
Bank account is a must
Take note that not all personal provider requires a bank account. There are some yes, but there are also providers that don’t. All you need to do is to conduct research and check what loan provider is perfect for you.
READ: proof of identity and a stable income
Online loans are scam
Online loans are not a scam. There are plenty of loan providers that you can choose from. Most of them are legit but there are some that aren’t so be very vigilant, conduct research first before deciding to avoid scammers.
You will drown in debt
Those people who drown in debt because of personal loans are the persons who don’t know how to pay responsibly. A personal loan can be paid in installments which makes it easier for you to pay. In addition, you can talk to your provider and request the best rate and loan term for you. You must be responsible for paying your monthly amortization consistently to avoid getting big interest and drowning in debt.
You’re going to jail if you don’t pay
This is not true. Not paying your debt isn’t considered a criminal liability but it doesn’t mean that it’s okay to not pay it. If you applied for a loan it is your responsibility to pay it. If you think you can’t pay it, you can contact your loan provider and negotiate.
As a final point, it’s okay to apply for a loan. As long as you are responsible enough and you know you can pay it then go. There are so many loan providers available that you can choose from. Choose the best one for you.