Personal Finance
Personal Loan vs Debt Consolidation vs Personal Line of Credit: What’s The Difference?
By ValueChampion  •  June 28, 2022
Getting a loan from a financial institution can be tricky for those unfamiliar with finance in general; since there are many different jargon and products and services that serve different purposes, it can be confusing to understand which is which fully. Aren’t personal loans and cash loans the same? What is the difference between personal loans, debt consolidation loans, and personal lines of credit? This article will go through the different types of unsecured loans and their benefits and drawbacks. Overview Between Unsecured Loan Variants Types of LoansPersonal LoansCash LoansDebt Consolidation LoansPLC (Personal Line of Credit)PeriodLong-TermShort-TermLong-TermShort-TermInterest Rates (EIR)11% to 14%400-576%6% to 14%12% to 30%Late Payment FeesYesMax Borrowing Amount4-8x Monthly Income$35,000>12x monthly income4-8x Monthly IncomePurposePersonal ItemsEmergenciesLower InterestFlexible PaymentCredit CheckHIgh Credit Score PreferedNo Credit CheckHigh Credit Score Required Secured vs Unsecured Loans Before we understand the difference between personal loans, cash loans, debt consolidation loans,...
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By ValueChampion
We distill sprawling marketplaces—for insurance, credit cards, bank accounts, and more—down to choices that represent a sweet spot for value—as in offering the features, returns, or experience we think you need for the smallest outlay. We ask: Is the return on a particular purchase or decision worth the cost or risk of that option, and how does the choice stack up against other options?
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