Picture Credit: Taber Andrew Bain
A lot of people advise you not to get a loan as it could potentially create a lot of problems for you. While some people do tend to struggle with their debt, there are those who don’t. As long as you ensure you keep up the repayments then you should have no problems at all. What’s more is there are in fact some good reasons as to why you should take out a loan:
1. It could help you in the short term – If you’re in need of a cash injection you could find a loan to be hugely helpful. Getting a loan could mean you have the money to buy a much-needed car, or to mend that hole in your roof. No matter what you need the money for, you could find getting one to be one of the most helpful things you ever did.
2. You could consolidate existing loans – This is great news for those of you who are able to keep up the repayments but you want to pay just one loan company each month. A single monthly payment could also mean your interest rates are reduced too.
Picture Credit: Jeff Ferzoco
3. You could help to improve your credit score – If you’re struggling to get a loan because you’ve had bad debts in the past, ensuring you keep up with payments could improve your credit score. Every time you make a payment when or before it’s due you will improve you credit score slightly.
4. You could be offered a good deal – some loan companies can offer you really good deals such as 0% interest for a set period of time. This could help to make paying off the loan easier and potentially quicker too.
5. You could get a credit score – Some people simply don’t have a credit score. If you don’t have one you may not be able to apply for future loans/mortgages. This is because no credit score can be considered in the same light as a bad credit score. The loan company will have no indication as to whether you can pay loans back, so if you manage to get one, do your best to get a good credit score and keep it that way.
As you can see there are some great reasons for taking out a loan. Just make sure you can realistically afford to make those monthly payments, and don’t be afraid to shop around for a great deal.