August 18, 2021 · Investment, Savings, Scholarship, Vacation
A Delta Community Personal Loan is an unsecured installment loan you can use pretty much however you want. An unsecured loan is provided by a financial institution based on the borrower's creditworthiness, rather than by the borrower providing an asset of value, known as the collateral, to secure against the value of the loan. An installment loan means that the borrower can pay the loan back in multiple installment payments, instead of paying the entire amount back in a lump sum. The loan is paid back during an exact, limited-time period—the term—of the loan. Having good credit is necessary in order to be accepted for a personal loan, just as it's required to get any other sort of loan or a credit card.
One of the benefits of a personal loan is its flexibility; you can use it for almost anything. Everyone can use a bit more money now and then, either for needs or wants. Perhaps you have something that needs to be repaired or the opportunity to buy something special coming up on sale; maybe you have located an extremely scarce, very desirable item that's available for a limited time. There could be a situation where someone needs some extra cash soon, and they will have a bonus or tax refund coming in a few months that will easily pay back a short-term loan. The amount of a personal loan is based on your choice, and a number of financial institutions offer loans that could be as little as under a $1,000 or as large as several thousands of dollars, and it can be used immediately or over time. The loan application process can be simple, efficient, and relatively quick.
With a personal loan you could:
A credit card gives you a line of credit, usually for several thousand dollars. If you already have one, why not use a credit card instead of a loan? That's a valid question, and it's worth digging into how a loan and a credit card operate differently. So, how does a personal loan differ from a credit card? Here are a few key differences:
While a credit card is a regular, dependable part of your financial toolkit, don't overlook the special advantages that a personal loan offers.
When someone needs access to additional cash, and has a good credit rating, a personal loan could be extremely helpful. Is this type of loan appropriate for everyone? As with many things in life, the answer depends on the specific needs of the person and how they prefer to manage their money. If life circumstances mean that extra money is a necessity now, or soon, then a personal loan might have the financial advantages that accommodate your needs. If you want to think about whether this type of loan is right for you, you can ask yourself a few questions about your current finances, such as:
Consider the above questions, and maybe get the perspective of family and friends on applying for a personal loan.
Looking for more information on managing money, debt and credit? We have a few more blog posts for you below.