Pros and Cons of Long-Term Personal Loans

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Long term personal loans bring many dreams within your reach. You can suddenly afford to make a large purchase such as a new washing machine that you have been wanting but which would have remained a dream without a long-term loan.

Long term personal loans could be of two types, secured loans, and unsecured loans. The interest rates are lower for secured loans because you have to provide a collateral security. Unsecured loans generally have a higher rate of interest but are arguably safer because your assets won’t be confiscated if you fall behind in your payments. If you take a personal loan, make sure to spend it responsibly and continue to make the payments on time and as per the agreement.

Getting long term loans with bad credit may be difficult but companies like Cashco Financial have shown time and again that although we carry out an evaluation of your credit history and your debt to income ratio, we have tremendous faith in you. If you can provide reasonable proof that your credit score is low due to an unavoidable reason and you are serious about paying the monthly bills, Cashco will make sure you get the money you need.

Why consider Cashco Financial for borrowing a long-term unsecured personal loan?

Cashco Financial offers long term installment loans called Flex Loans that allow you can borrow up to $5000 anywhere in Canada and take up to three years to settle the loan in full. The term and amount vary on a case by case basis because the loans are flexible to fit your needs. Cashco understands the importance of customer relations and unlike banks and rival insurance companies; we treat you like a human being and not just a business prospect.

You don’t have to stand behind bullet-proof glass and talk to a teller over an intercom. Cashco’s agents love to interact with customers and consistently go out of their way to make you feel comfortable. Your convenience and welfare is our priority. Cashco’s philosophy is, “provide relief today and hope for tomorrow.” You can always be directed to financial counseling if you’d like it. Once the flex loan is approved, your money will be credited to your account within a few hours.

Pros of long term personal loans

  1. Easy to lock in your monthly or annual budget: Since, the periodic payments and the tenor of a long term installment loan is fixed, you know exactly how much you have to pay for the loan, unlike revolving debt like credit cards.
  2. Can be used to consolidate your other debts: If you have amassed a big debt on your credit cards and other unsecured loans, you can consolidate them into a single consolidated debt. The combined rate of interest is generally lower than the rates on separate cards and you may have to pay smaller amounts per installment now.
  3. Longer payment window means smaller payments: A personal loan will allow you to make a large purchase and then pay off small quantities every month. That means there will be less stress on your spending ability.
  4. Getting a bigger loan: You can get a bigger loan if you want. The interest rate is lower compared to your credit cards.

Cons of long term personal loans

  1. Paying more ultimately: Although personal loans guarantee convenience, you could end up paying more. Generally the longer the tenor of the loan, the larger the total amount of interest paid is.
  2. Prepayment may attract more interest: Some lenders, other than Cashco Financial, levy a prepayment penalty on prepayment of your loan. So if you pre-pay the loan, you would be paying more in interest than if you were using the full tenor. Some companies may refuse to refund the processing fees if you prepay. Read the fine print and ask the agent for clarifications.

The benefits of a personal loan far outweigh the disadvantages, especially if it is a Flex loan from Cashco Financial. If you are a responsible spender, a Flex Loan is ideal for your needs. Try it out today.

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