To make a wise economic choice, it is compulsory to distinguish facts from fiction. Consciousness and guidance can help you with this. Many people are afraid to approach lenders as a result of common myths regarding personal loans. Let us have a discussion about these myths and the truth hidden beyond these myths-
- Personal loan permanently requires a good credit score
A credit score is a crucial factor in deciding the suitability of personal loans. Above the 700 credit score makes an approved personal loan application. However, this does not mean that if you have a bad credit score, you will not get a personal loan. In the small duration of time, you can find out about lenders who are focused on providing personal loans. The loan may have the high-interest rate, but you can get the financing.
- Only employed people can use the personal loans
No, both employees and self-employed people can take out personal loans. Self-employed individuals can opt for personal loans based on their credit score. In the case of a personal loan, the lender analyses the money flow and credit registration of the borrower. Person’s company is not estimated for a personal loan financing.
- Personal loans can only be used for personal reasons
No, as soon as you take out the personal loan, you are free to use it for anything you wish. You can even devote the cash to your company. A lot of business people have invested the borrowed personal loan into their company.
Know The Difference Between Truth And Myth
- There are no tax welfare on personal loans
Yes, there is tax welfare on a personal loan. You can declare the tax deduction on the interest portion of your EMI. There is no deduction on the main component. The tax welfare is permitted if there is a valid expense on your part.
- I cannot apply for a personal loan because I am attached to another loan
Even if you are stuck with another loan, you can apply for a personal loan. There is no such limitation that if you are connected to a loan, you can not apply for a personal loan. If you have the capability for repayment, you can easily go for a personal loan. Your suitability is decided by your repayment capability. In this situation, you need to know about the debt consolidation facility. Here all debts are combined in one personal loan. This way you pay a single installment and you can handle your debt load in an easy way.
- Sustainable approval process
In this modern age, obtaining a personal loan has become fast and simple with digital access. Personal Loan by Canadian Cash Solutions is an example where you can have your loan paid out in less than 3 hours. Checking the eligibility for the personal loan is possible within a minute and online approval can be done within 10 minutes.
So, people, we’ve picked up the myths to help you go in the right direction. If you are still struggling for some extra money, go for personal loans. With a good credit score, you can use the loan at a low-interest rate.
Being one of the best lending company all over Canada, Canadian Cash Solutions can provide you the best personal loan with the lowest interest rates that can be in your benefit.