Busting Some Myths on Personal Loans

The personal loans are multi-purpose debts that can be used for a host of tasks including, emergency medical bills or funding home improvement projects. Overall, this type of debt is useful in solving financial crunches and helping you in reaching your growth goals.

As the manager for personal loan Wareham department points out, such loans can help in solving a lot of financial issues for a person – but often a customer tends to overlook them. It mostly due to a lack of understanding of how the personal loan schemes work, or how to best utilize them.

Here are some of the biggest myths associated with personal loans and the truth behind it:

     1. Personal loans are expensive

Personal loans do charge interest, but when comparing with the credit card – the annual percentage rates are marginally less. Loan applicants who have a higher credit score will automatically be eligible to get lower interest rates for the mortgage. Additionally, the loyal consumers are offered an additional loyalty bonus from the bank.

As financial manager points out, in most of the case the rate of interest for personal loans is calculated a bit differently from the credit cards interests. For credit cards, the rate of interest is variable. Thus, the APR for the credit card rises with the index rate. For personal loans, the index rate is somewhat fixed – making the interest rate stagnant throughout the life of the loan.

     2. Personal loan application involves a lot of paperwork

Contrary to popular belief, personal loans do not involve you filling out numerous paperwork, and signing multiple papers. However, now the situation has changed and with the help of technology, the process has simplified. You can apply for the loan online and the bank will follow up with you.

For the sake of simplicity, keep your review documents handy and upload them as the requirement arises. This facility is limited, mostly, toward the customers of the bank. In case you are not a member of the bank, then you might not be eligible to apply for the loan online. It is recommended to verify the same before starting the process.

Overall, personal loans are a helpful aid in solving financial emergencies. The personal loan Wareham department of PCT Federal Credit Union could help you in filling out the details for consolidates mortgages and help in getting the amount. To know more, visit http://www.pctfcu.org/ or call 508-291-0777.