Whether you’re financing a family vacation or dealing with a financial emergency, a personal loan can be a great way to get the money you need. Unfortunately, some common misconceptions and financial myths make some borrowers hesitate, sometimes turning to more expensive financing options instead. Below are some of the most common pieces of misinformation you might have heard about personal loans.

4 Personal Loan Misconceptions

1. They’re Only Available to Those With Sterling Credit

Of course, a high credit rating will make finding a loan easier, and you’ll probably enjoy lower interest rates. But many lenders specialize in working with borrowers with less-than-perfect credit, so past mistakes don’t automatically disqualify you from securing a loan.

2. You’ll Need to Have Collateral

Many lenders do offer secured loan programs, which involve putting up your house, car, or other valuables as collateral. However, most will also provide unsecured loans that don’t require collateral.

3. The Interest Rates Are Too High

While unsecured loans will probably have higher interest rates than secured products, they still might be less expensive than credit cards in the long run. If you’re borrowing thousands of dollars, even a 2% reduction in interest rates can add up over the life of the loan.

4. The Interest Rate Is Most Important

When comparing two loan options, most people focus on the interest rate, but there are several other factors that determine the true cost of a loan. For instance, some lenders charge origination fees, late fees, and even have penalties for early payment, which can make a loan more expensive, even if the interest rate is lower.

If you’re planning a major purchase or need to pay for unexpected expenses, Coastal Finance Company has customizable loan packages that can be tailored to your needs. Over more than 15 years, they’ve earned the loyalty and respect of clients throughout Savannah, GA, thanks to their flexible terms and friendly service. Follow their Facebook page to keep up with Savannah’s oldest loan company. Call (912) 303-9979 or visit their website to apply for a personal loan today.