The first thing we always say when it comes to loans is, it can be a bad option when you have cheaper options but a great option when you have a strategy for it. This strategy could be for a business or personal use.
For us at BlackCOD, our values about loans revolved around your success and making sure you do not regret taking a loan. Moreover, it is also important that you have self-awareness and understanding about the idea of a loan, this will help you make informed decisions.
If you can commit to paying back a personal loan that you intend to use for the right reasons then a personal loan is not a bad option. On the other hand, if your money lender’s interest is in triple-digits and neither have a plan to pay back not intend using it for the reasonable course then a personal loan will do you more harm than good.
What is a personal loan?
According to nerdwallet.com, a personal loan is money borrowed from a lender that you pay back with equal monthly payments, or installments, over a fixed period, typically two to seven years. You can get personal loans from banks, credit unions and online lenders.
In return for borrowing, you pay interest on the loan”.
At BlackCOD, we ensure that we access your reason for a loan to help you with your decisions, we also ensure that we check your credit so that we can accurately assess your ability to pay back.
For businesses, it can make sense to take a loan because it is assumed that you have calculated the risk and your profit at the end of that business. However, we don’t just assume, we also offer advisory services because your success is ours too.
At this point, you should understand that taking a loan for weddings, extravagant vacations and any discretionary purpose without a stable income plan to payback is a bad idea, this is when a loan may become bad.
Now you can answer the question ‘Are Loans Bad’? Not Always!
When next you want to access a loan, we strongly advise that you do the following;
– Estimate your payments
– Compare rates among lenders
– Check loan features
– Check for additional benefits.