Flexible loans are a valuable product or those seeking finance on their own terms, be it to deal with an unpaid bill or a domestic emergency. Not all loans are suitable for all though/ We look at the pros and cons of flexible loans
Flexible loans depend largely on your credit history and your loaning history from specific lenders based on their own criteria. This blog is going to break down the positives and negatives of flexible loans. We think that on balance such loans are mostly positive.
One con of flexible loans is that you are best off applying for a shorter loan. Otherwise you would end up having to pay a lot more interest. It’s best that you draw up a budget and ensure you payback the money each month that you have borrowed.
A major pro of flexible loans is that you will be allowed to pay extra towards the repayment each month. This is helpful if you have got some extra bit of income from other sources. This will not increase your interest for doing so nor will it be an additional charge.
Another pro of flexible loans is that you can start saving interest on the deposit made from the day on which it was made which means you are not earning interest which is taxable income.
Even more pros is that a flexible loan is a very good technique to consolidate existing debts because it’s basically a technique of refinancing and you can manage your outgoings at a more steady rate & your overall credit balance knowing soon in the future your financial position can be transformed.