These loans have always been a topic of debate. The reason is that many of you are unable to differentiate between facts and misconceptions. Knowing the true attributes of a loan is not a tough job.
You do not have to go out of the way and research extensively. Common sense and understanding of how a loan works can help you debunk some of the common myths. Personal loans are a common term used to describe different types of loans.
The different types of loan categories you come across are most likely a form of these loans. For this reason, it is natural to have a lot of confusion about them in general. Now, a common misconception might be that these loans need you to put forth an asset, which is not concrete information.
Yes, you should fulfil this asset condition if you opt for secured loans. However, you should be aware that unsecured personal loans from a direct lender are also available. They do not demand collateral in order to qualify for a loan application.
They have different terms and conditions as decided by the loan provider. The interesting thing is that both of them are personal loans. Understand your loan requirements and look for the exact attributes you might be looking for.
This will take you closer to what you need, if not the exact loan product. Weighing up the features and your financial capability is crucial when you are an option for loans. Go through this blog and get acquainted with other myths carried forward about these loans.
Addressing common misunderstandings about personal loans
When you have to borrow money, you should be extra cautious. This is because you will accept an extra burden of interest that can make the borrowing cost affordable or unaffordable. Thus, a complete study of the loan option to understand its features is crucial.
In this endeavour, you might come across information that might not be true. However, you can make a big mistake by simply believing them without validating them carefully. When it is about knowing personal loans and the misconceptions related to them, you must keep exploring them here.
1. Interest rates will be high
When it comes to getting loans, interest rates remain the prime concern for all borrowers. Anyhow, they have to pay more to be able to get access to urgent financial help. This is like a compromise they are ready to go ahead with so that they can overcome the ongoing crisis.
However, they forget that accepting any rate can exponentially increase the price of the loan. It could become something that they might not even be able to afford at the time of loan payments. This is not the norm when you apply for loans from a direct lender like Quickloanslender.
They do not compel you to accept any rate without validating if you are capable of paying it off or not. These lenders let you pre-approve for a free quotation. It will have an offer with loan rates and terms closer to the actual loan offer.
Now, the beauty of this facility is that you can take advantage of it with multiple lenders. This will not cause any further harm to your credit scores. After gathering different offers, you can conveniently find out which one has the best interest rate.
Opt for it so that it can lower the borrowing cost for you. Therefore, you do not have to agree to a random offer with random rates.
2. Apply for these loans only one time
Borrowing is not something that can be practiced regularly. When you borrow external funds, you cannot deny your responsibility to repay them. For this reason, it has been advised not to apply for loans subsequently.
This will increase your debt burden in such a manner that repaying will become difficult. As a result, you can never escape the debt loop. Your finances and financial growth will suffer because of this mistake.
However, if you are confident about your financial wellness, you can apply for loans more than one at a time. Whether or not you will be approved money will be a lender’s decision. You will have no role to play in this process.
3. Rejection should not be followed by another application
You should not apply for another loan without understanding the reason for rejection. Maybe you need to work on some factors in your finances to enhance the chances of loan approval. Now, if you do not pay attention to this aspect and apply for loans again straightaway, the outcome might be the same.
This is because your application has the same drawback and the lender cannot process your application. Thus, there is no hard and fast rule describing that you cannot apply for a new loan after facing denial from one lender. The logic behind not trying out this thing has been given above and you must take a note of it carefully.
4. Personal loans can be used for any personal purpose
No, you should not use loans to fulfil your personal pleasures. The first thing about loans that you must know is that they are meant to help you cover unavoidable necessities. Buying a new gadget or a dress or gambling cannot be projected as an emergency requirement.
These are wants, and you should not use these loans for these purposes at any cost. Besides, you should not take out a loan to invest as the returns might come late. You will end up in a debt cycle as the repayment term will not be designed to match the timeline of your investment returns.
You should be responsible enough to decide when and when not you must apply for a loan. Just because direct lenders have made some of the lending conditions convenient, it does not mean that you can get loans for any purpose.
The bottom line
Another misconception about personal loans might be that they take a long time to process. Your experience with mainstream lenders might have compelled you to believe in this myth. However, this is not going to happen when you will apply for loans with a direct lender.

Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.