Every person on this planet, dreams of having an income that will ensure his every desire and need is fulfilled. Sadly, for most of the people, this dream remains just that, a dream, and not their reality. Still, they have to survive. People may have dreams and aspirations that can seem unrealistic, but why should that stop them. After all, if you don’t think it, you might not achieve it.
The bridge between your dreams and your wallet may seem too huge to ever lessen. But what if there was a way to do so? All of you must be familiar with the word borrow. All of you must have borrowed something or the other at one point in your life. The aspect of borrowing that this blog will be talking about is a loan, to be more specific, a personal loan.
What accounts as a personal loan?
A personal loan is a category of finance wherein the borrower acquires an amount from the lender to fulfil a need or a desire. These loans are usually taken to satisfy the current requirements, this means that they are short term loans. They typically last from a few months and can be maxed up to a couple of years. Since the loan duration is small, the rate of interest is nominal.
Personal loans in Ireland are mostly taken to pay for medical bills, tuition fees, or to buy an expensive gadget or a home appliance. An LED screen is necessary for football fanatics when there is a Manchester Derby. As the screen is worth two months’ wages, a loan becomes a must.
Another good thing about these loans is that they tend to be unsecured, meaning you do not need to provide any collateral or security to the lender.
Can you turn a personal loan to your advantage?
The answer to this question is YES. You can undoubtedly reap as many benefits as you want from a personal loan.
Fulfil more needs than just one
When you get a personal loan, more times than not the amount is wired into your account as a lump sum. If you consider yourself shrewd, then you must have gotten an amount that was slightly more than your requirement. So you would be left with cash after everything you needed is paid for. This cash can either be saved for emergencies or can pay for your other needs. The choice is yours. This benefit is not available in different kinds of loans.
Elevate your creditworthiness
Many people are denied a loan because their credit score is poor or very poor. Some of us are taking a loan for the first time, so they have no credit rankings. A bank or any financial institution uses this score to ensure that you will return their money with interest and on time. All lenders favour a higher ranking, and a lower score is frowned upon. As we have discussed that personal loans are short term, so taking a personal loan can help to improve your score.
Let us understand this through a scenario, assuming that you have a poor credit score, a bank will not easily provide you a loan. If it does, then to ensure a profit it will impose a significant interest rate upon you. Your dream is to start up a winery for which you are bound to need external finance. Since a loan is essential for you and that too on a lower interest, you will have to take on a personal loan for a year or so.
For this purpose, there are quick loans in Ireland. Now, all you have to do is make sure the repayments are on time without any default. Once the loan is fully repaid, your credit score will automatically improve. Since the loan is short term, a higher interest does not pinch as much.
In a world where everyone is paying instalments, there is a tendency found in people that makes them borrow for more than one purpose. It means they are repaying different loans at different interest rates and are at a loss. A solution can be found through personal loans. The borrower can take an amount as a personal loan that can repay all his separate finances. This way he is paying only one instalment at one specific rate of interest, albeit a slightly large one.
Taking a loan for fulfilling the current needs is always welcomed, but if the same loan can do a little more, the borrower may not be daunted by it.