The Beatles may have said, “I never needed anybody’s help in any way,” but for the majority of us, this statement couldn’t be further from the truth. Whether it’s getting help to watch your kids, help in learning something new, or help paying off your debts, we can all occasionally use a helping hand. At MaxLend, whether you have good credit, bad credit, or no credit, we try to help you obtain the funding that you need. MaxLend loans can be considered personal loans, though they are also referred to as online installment loans or direct installment loans, and some might call us unsecured installment loan lenders.
How Can You Use a Personal Loan?
Which best describes a way people can use personal loans? Personal loans are often unsecured installment loans that typically don’t require you to identify how the money will be used. This might make you ask: What is an unsecured personal loan? An unsecured loan does not require any form of collateral. Examples of unsecured loans include student loans, credit cards, and personal loans. Because the lender is taking a higher risk by loaning money without collateral with personal loans, higher credit scores may be required to qualify. Alternatively, because of the increased risk, lenders may charge a higher interest rate on an unsecured personal loan than they would on a secured loan.
Pros and Cons of Personal Loans
As with any loan, there are pros and cons to personal loans that you should consider before taking out direct installment loans. Here we will cover some of the positive and negative aspects of personal loans that you should consider before submitting an application with a lender.
Pros of Personal Loans
You might now be thinking, “What is a benefit of obtaining a personal loan?” As opposed to secured loans, which require a form of collateral, there is often no collateral requirement for obtaining unsecured personal installment loans. This also may mean that less documentation is needed to obtain your loan, leading to getting a quick personal loan and possibly even same-day installment loans. Another benefit of personal loans is that if you cannot make a payment, the bank typically cannot seize your property with an unsecured personal loan. Additionally, the better your credit score, the more likely you will get a lower interest rate on your small personal installment loans.
At MaxLend, borrowers may qualify for Same Day Funding* or next-day loans, depending on when they complete the application process. Whether you are looking for a loan to help pay for your upcoming nuptials, repairs to your home or car, or other emergency funding, same-day personal loans could help.
Cons of Personal Loans
Though there are definitely benefits to personal loans, some cons also exist. As with secured loans, if you fail to pay a personal loan, your credit score may be severely and negatively impacted. Additionally, if you default and have an unpaid loan, the lender could sell your loan balance to debt collectors, leading to unwanted phone calls or possible lawsuits. Another con of personal loans may be a higher interest rate. The more risk that lenders accept, the higher the interest rates might be.
Whether you opt to take a personal loan or another kind of loan, make sure you weigh the pros and cons to ensure that the loan you take out best fits your needs. You can even reach out to us, the personal installment loans direct lender, MaxLend, to apply and see if you qualify for funding.
Contact MaxLend
It’s easy to apply for a personal loan from MaxLend. If you have questions, don’t hesitate to get in touch with us today at 877-936-4336. We can give you more information on the loans offered by MaxLend, including same-day loans. We are available 24 hours a day, 7 days a week, to get you the information you need to secure your funds today.
Additional reading:
Most Common Reasons People Take Out a Loan
Understanding the Difference Between Fixed and Variable Loans
How You Can Apply a Personal Loan for a Medical Emergency
Taking Advantage of Installment Loan Rewards
*Same Day Funding is available on business days where pre-approval, eSignature of the loan agreement and completion of the confirmation call, if a call is required, have occurred by 11:45 a.m. Eastern Time and a customer elects ACH as payment method. Customers who complete this process by 1:30 p.m. Eastern on business days may still receive funds on the same day, but some banks may not disburse the funds until the next business day. Other restrictions may apply. Certain financial institutions do not support same day funded transactions. When Same Day Funding is not available, funding will occur the next business day.