3 Reasons Why You Should Take Out a Personal Loan

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(Newswire.net — May 5, 2020) —

In the past, when people heard the word ‘loan’ it was regarded as a dirty word, but nowadays borrowing money is the new normal. You would be hard pressed to find anyone who currently doesn’t have a credit card in Australia, and we use credit to make many of our purchases. When you try to pay in cash nowadays, people look at you kind of funny, especially when it’s for a big purchase like a new car, and even though you worked hard to earn that money, people are suspicious of where the money came from. It seems silly, I know, but that’s the way it is now, but should you borrow the money off your credit card to make the payment, then everything seems quite normal.

Additional benefits.

People are a lot more financially responsible nowadays and they understand the intricacies of borrowing money and the responsibility that comes along with that. Borrowing money now, from lending institutions seems quite normal and rather than use your credit card, that has really high levels of interest that accumulates should you miss a payment, people are now opting to take out personal loans. They offer a wide number of benefits that credit cards and other loans don’t offer.

Nimble Loans.

Taking out a Nimble loan is one of your options, and when you take out a secured loan, it offers up a number of real benefits. We will explore just a few of them here today.


  1. 1.      Higher borrowing limits – If you already have a credit card, then you know about all of the restrictions that it has. Your credit card company sets an upper limit that you can only borrow up to, and no more. This restricts you when it comes to your buying power, but with personal loans, the ability to borrow much more can be available to you.


  1. 2.      Lower interest rates – Interest rates on credit cards loans can get really high, and if you miss a payment, then there are large penalties as well. Many people with credit cards find it almost impossible to pay the debt off in full, but you shouldn’t have these kinds of issues when you take out a personal loan. An unsecured personal loan for example, may only be 5 to 6% interest, and when you are comparing that to the rates currently being offered by credit cards, it makes your decision a lot easier.



  1. 3.      Easy to manage – If you have multiple credit cards and you’re trying to balance these altogether, it can get really difficult. You have different payments being required at different times of the month, and it usually involves different interest rates. It is difficult to juggle all of these together, when it would be somewhat easier to just take out one single personal loan to cover all of your payments.


The above are but a few of the many benefits of taking out a personal loan. If your credit score is satisfactory, then getting such a loan should be quite straightforward, and once the terms are agreed upon, you know exactly how much you have to pay back every month.