People might need to borrow money through a personal loan for many different reasons. It might be an emergency loan for a boiler breakdown, a new computer or to consolidate existing debts. Personal loans might be the cheapest way to borrow money by offering the lowest interest rate over the longest period – compared to other methods of borrowing.
You’ll always know how much you’re repaying each month as this is agreed when you take out the loan. What’s more, the rate of interest will also be fixed throughout the term of the personal loan.
Boost your credit score
When you take out a loan, and start your repayments, your credit file will reflect this. As long as you make repayments on time, you’ll boost your credit score and will be more likely to receive competitively priced credit and positive decisions in the future.
Bringing debt together into one personal loan is a great way of reducing the overall cost of debt, as long as the interest rate is competitive. You can reduce monthly repayments costs too, by extending the term you’re borrowing for. Be aware though, this could increase the overall interest you’ll repay.
Accessing money quicker
With a credit card, or other forms of borrowing – it can take some time before you’re able to access your money. With a personal loan, some lenders enable you to access your money within one working day of approval.
Koyo’s take in a nutshell
At Koyo, we offer people new to credit, or the country, access to competitively priced personal loans. Normally, those in this situation have a thin-credit file, or no credit file at all. This can lead to expensive borrowing, or most lenders declining. We use technology to assess a borrower’s risk on their spending habits. This enables us to approve people for personal loans that might be far cheaper than other borrowing alternatives.