Consumer loans are short term finances which are provided to people who wish to purchase small products. These loans are provided to customers to help meet their personal, professional and household requirements. Individuals take up these consumer loans even to buy small goods like clothes, food products etc. Consumer loans are also available online nowadays.
Customers find these loans easy and convenient to a large extent. Availing these loans also take place at a faster rate. But looking into all the attractive aspects of consumer loans, there arise a question on how to get consumer loans? Majority of the online websites availing services to provide these consumer loans, do not look into the credit scores of consumers. At certain instances, online funders and money lenders provide consumer loans with low credit scores, and a large number of money lenders do not give confirmations on paper easily, do not approve loans quickly and deny consumers to withdraw money within a day.
People who are in a desperate and in an urgent need of money go for consumer loans. Customers look into the flexibility these loans provide and get attracted by it. But the major drawback of these consumer loans is the higher interest rates they charge. The interest rates of consumer loans are higher than that of the personal loans. Clients take these loans only to meet their urgent needs of money. When the loan amounts are small, consumers deal with it easily.
Every consumer should make themselves aware of the credit scores which are required by the money lenders. The terms and rewards these loans imbibe are attractive and great. But the lenders will always be keen in getting the money back from consumers as well. Lenders might at times change the terms and conditions in the course of the loan repayments, but you must still be able to repay these loans maintaining a good credit score. These loans do not require guarantors. Guarantors are people who stand as guarantees and assure the money lender, that the borrower will repay the debts regularly and correctly. Consumer loans may need collaterals at times. But there is no requirement of a guarantor as mentioned in the terms and regulations.
Types of consumer loans
Consumer loans are applicable to all types of people having varied levels of monthly income, educational requirements and employments. But the terms and condition under each criterion may differ.
- Student loans: Students with varied educational requirements are eligible for these loans. They cover expenses incurred due to tuitions, books and food.
- Debts for credit cards: Credit card obligations, used to pay for various personal purchases also come under consumer debts.
- Mortgages, owing to the huge sums of money involved with it, come under consumer debts as well.
Lenders usually offer loans which are to be paid in a single instalment. These loans are called the bridge loans or the balloon loans. These are basically temporary loans.