3 Common Misconceptions About Getting Personal Loans

When you do not have the needed funds available in your bank account, you would usually turn to your family members or close friends to borrow money from them. The best option is to get a personal loan instead of borrowing money from them since you will not be hassling anyone. However, you might have fears of getting one because of the many misconceptions surrounding it.

It can be difficult to get a Secured Personal Loan when doubts are surrounding your mind. You should know that many of the misconceptions you have heard about personal loans are untrue, so you have to debunk and find the real truth behind them. You will never know when a simple loan might save your life literally and figuratively.

Can Only Get Loans From Banks

One misconception that many still believe today is that getting a loan can only be done in banks. Many financial institutions do not provide different types of loans ranging from car loans to secured personal loans. Many call them non-banking financial companies or NBFCs, and they sometimes offer loan rates that banks do not have.

If multiple banks have rejected your loan application, it might be time to look for NBFCs because you will have better chances of getting your loan approved. You can even find several NBFCs that accept clients with a bad credit score history, giving them a second chance to acquire a loan.

Loans Will Take A Long Time To Process

Another misconception preventing many people from getting a Secured Personal Loan is that they think the loan application process will take a long time. It can be frustrating for many when their loan application takes longer, and they need the money as quickly as possible. While that may have been the truth before, things have changed in modern times because of how financial institutions improved their system and technological advancements.

You can find that getting a personal loan nowadays will only take you 24 to 48 hours. The process usually involves filling up the loan application online and uploading your finished work into their database. After that, the applicant only has to wait within the 48-hour timeframe, and they can get a notification through email or text whether their application was approved or not.

You Will Always Get Rejected When You Have A Low Credit Score

If you have a history of getting a bad credit score, you should not feel discouraged anymore because you still have a chance of getting approved for a personal loan. Having a bad credit score does not mean that the financial institution will reject your loan application right away. There are still other criteria that they can consider to give you a chance at getting an approved loan.

Examples of criteria include income, age, a fixed obligation to income ratio, the validity of documents, and many more. If one bank or financial institution does not approve you for the loan, you can always look for other ones like NOW Finance, which are one of the many that can give you another shot.

You can still discover many misconceptions that other people will tell and convince you not to get personal loans from any financial institution. Therefore, you have to research your own and debunk their myths to give you a sense of clarity.