Many of us consider taking out a personal loan if
you need additional funds, but there are some hidden
dangers that can come with borrowing money. So here
with some helpful information is the co founder and president
of solo, the largest community finance platform in the
US Rodney Williams. Thank you so much for joining
us. Pleasure to be here. So you say
that taking out a personal loan is not for everyone
. How do you mean? Well, not quite
exactly. Ok. Uh What you should focus on
those the number of personal loans um and the the
cost of each, they're not all the same and
they're not all equal. And uh if you have
too many, it can cause problems. But how
does getting a personal loan even if it's just one
impact your credit score? Well, it will mean
a missed payment will negatively affect your credit score.
Um Your goal should be to pay that off as
soon as possible. I will say there are uh
full repayment, personal loans and there are like payment
plan, uh payment, uh personal loans. You
should stick with the ones that are payment plans versus
the single installment but some people think, ok,
this is a way to build credit by getting a
personal loan if, if they're paying it off on
time. Is that true? It is true.
But only the ones that allow you to pay over
time. Hidden fees are a big problem. Um
, there's the APR but you should pay attention to
the late fees or subscription fees or even annual fees
. Um, there are early, uh, expedition
fees if you want the cash today versus tomorrow.
Um, all of these fees need to be taken
into account when you're assessing the total cost of that
loan and you definitely wanna be careful of any prepayment
fees. You should be able to pay it off
whenever you want to. That's the worst one.
Right. Right. Right. Ok. So when
should you not get a personal loan? Because a
lot of people have a lot of excuses and reasons
, but when should you not get one vacation,
gambling investing, um, bills? Those are the
things you probably do not wanna use a loan for
? Ok. So let's find out the main three
things. That's, for example, that we need
to know before we get a personal loan. Take
into account the total cost that is every single other
, uh, cost. Uh, I think the
, the third point or the second point is the
duration, um, you wanna pay attention to the
duration because personal loans can have bearable or very different
durations depending on the loan type. And I think
the third is you don't have too many. And
where can we get more information? Well, you
can always find information uh with the largest community lender
solo funds uh at Solo funds.com uh or your,
your local bank. All right, thanks so much
. Great tips. Thank you.