Fixed rate personal loans – Pros and cons

A fixed rate personal loan is great for certainty and budgeting. A fixed rate personal loan can be secured against an asset, like a car, or unsecured. An unsecured personal loan will often have a higher interest rate.

A fixed rate personal loan has the same rate for the entire term of the loan, so you know what you will be paying in advance. Of course you also know that the rate will never go down.

Check the comparison rate to ensure you are looking at and comparing the total cost of each loan product. A fixed rate personal loan can sometimes be a good idea for debt consolidation.

Source: Bankheadlines.com.au

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