One of the most popular loans is consumer loans in the United States. Americans call it a personal loan service. This refers to the funds that the borrower takes for his personal needs. This can be a large purchase or an expensive clinic treatment. The average rate is 6%. Specific conditions depend on factors such as term, amount, credit history, job seeker’s salary, etc.
Personal loans in the USA
Nowadays, issuance of a personal loan is a common service for residents of the United States. For most citizens, a personal loan opens all doors and they do not worry about the fact that the house, car, furniture, household appliances were purchased with a bank loan. This is a kind of lifestyle that allows you to enjoy all the benefits when you need it. Young people who are just beginning to climb the career ladder cannot afford expensive purchases. If you save money, denying yourself everything, you can achieve prosperity only by the age of 35-40. During this period, families are built up, children are born and grow up, who also have to be limited in desires. Personal loans as a security service provide an opportunity to avoid these problems.
Most American banks have a monthly interest rate of about 2%. The loan for the purchase of real estate is issued for 30 years. This makes it possible for a person with an average wage of $ 2,000 to purchase a house for a family worth about $ 130,000 without having problems with repaying the loan back.
The pitfalls of the American personal loan
It is not difficult to issue loans in the USA, which makes them very popular. And, nevertheless, banks make some requiements on clients. For large loans, a down payment is required. Its size directly depends on your credit history. For foreigners, the loan application is limited to a limited account of up to $ 3,000. Moreover, such an amount can be obtained only with the surety of a US citizen.
A credit score matters for every American. The existing rating of this indicator is taken into account not only when deciding whether to issue a loan. Unpaid loans, delays in payments can rsult in refusal to hire, rent real estate and even connect to the Internet. It is worth considering the high prices of medical services, which take a lot of money. Therefore, in addition to the credit score, US citizens sometimes have to get acquainted with such a definition as bankruptcy.
A citizen who does not pay debts on a loan is declared bankrupt, for which a special legal procedure is provided. At the same time, the state writes off all existing debts from him. There is no prison sentence for this offense. However, for the time specified by the law, a bankrupt not only cannot take out a loan, but also make large purchases for cash. For those who could not repay the loan for valid reasons, state support is provided.
The credit system in the United States makes it possible to enjoy all the benefits without spending time on accumulating funds. But neglecting a bank’s loan obligations can lead to a hopelessly damaged credit score.