At some point, everyone needs a little financial help. Maybe you had an unexpected emergency, or your home is in desperate need of repair.
If you’re lucky, maybe you can borrow from family or friends – but that’s definitely not an option for everyone.
That’s where a fixed APR loan can help. These types of loans can help help you pay for expenses with minimal stress.
That’s why more and more people are turning to personal loans. Last year alone, Americans had over $133 billion dollars in personal loans – and that’s only secured loans.
Not sure if a personal loan is right for you? Here are 4 reasons to use a fixed APR personal loan.
1. Interest Rates Don’t Change
Personal loans have two types of interest rates: fixed and variable. The interest rate may also be called the APR, or annual percentage rate. The APR is the yearly interest generated by a borrowed amount.
With a variable rate personal loan, the APR may change at any time. A fixed apr loan has a fixed or set APR. With a fixed APR, your interest rate is guaranteed to not change during the lifetime of the loan.
2. Predictable Payments
Fixed APR loans also have predictable payments. Along with your interest not changing, your monthly repayments will remain the same. Knowing the specific amount you will have to pay each month allows for easy budgeting and peace of mind.
3. Flexibility
Many types of loans can only be used for a specific purpose, such as an auto loan. But personal loans can serve many purposes.
What can you do with a personal loan? You can use them for:
- Debt consolidation
- Home improvements
- Emergency expenses
- Major purchases and expenses, such as weddings
This versatility is what makes personal loans so popular. You could fund a home renovation project and increase the value of your home, pay off unexpected medical expenses, or use them to simplify your debts and pay off a single loan.
4. Easy Application Process
Applying for a fixed APR loan is easier than applying for a mortgage or other types of loans. Some personal loans are unsecured, meaning they require no collateral. That means your house, car, or other major asset isn’t at risk in the event you are unable to repay your loan.
Many lenders have streamlined the application process for these loans, allowing them to be applied for online, and giving a decision within seconds. You can visit financefixup.com and see an example of how easy the process has become. You can choose your loan amount and term, and get an estimate of your monthly payment.
The Convenience of Fixed APR Loans
A fixed APR personal loan can offer a predictable, affordable, and quick way to access cash. The flexibility of these loans allows for practically anyone to benefit from them. Shop around and compare lenders, and you’re sure to find the right personal loan for you.
If you found this article useful, check out more in our Finance section.
