Recently, many people applied for gadget loans. With many gadgets appearing in various markets, it’s really tempting to apply for one in order to purchase a choice gadget. While it’s easy to pick a gadget loan, there’s an alternative: personal loan. This type of loan is as flexible as gadget loan, and it’s issued by almost all banks.
Are you choosing between gadget loans and personal loans? You can compare them by analyzing these points:
Interest rate is the measuring factor of a loan’s popularity level. If the loan has high interest, most borrowers will avoid it like the plague. On the other hand, if the interest is tolerable, borrowers will flock around the loan. Typically, personal loans have higher interest than gadget loans. Perhaps one of the reasons for this is demand. Borrowers can use personal loans to buy gadgets, and they might gain rewards upon doing so. Gadget loans also offer the possibility of rewards, but this is not always the case. Take this factor seriously so it’d be easier to repay the loan after few months.
The next important factor is the repayment term. This is a bit tricky because lenders change their terms every now and then. Basically, a loan with a long repayment term will drain more money from your wallet. Personal loans have a typical window of repayment term: 3-5 months. On the other hand, gadget loans have terms that can exceed 6 months, depending on your chosen gadget. Calculate how much the lender will make from your principal. You won’t get accurate results, but the estimate can guide you accordingly.
Loan volatility is a factor ignored by many borrowers. This factor measures how volatile a loan can be over time. Based on numerous studies, gadget loans are susceptible to abrupt change. This doesn’t mean that personal loans are not volatile. They can change as well, albeit on a lesser scale.
Perks & Rewards
You’re now aware that personal loans and gadget loans have their fair share of rewards. But what are the common rewards that you’d get? It depends on the lender. For personal loans, you might get discounts, rebates, and consumer offers. For gadget loans, it’s possible to get product tie-ins, subscriptions, and data plans. Check the websites of popular lenders in your area. The sites will give you information about their rewards.
Gadget loans and personal loans are not entirely different. They are both debt instruments that must be paid off. They have interest rates and other connected fees. However, their importance will vary depending on your need and repayment capabilities. Don’t apply for these loans if you can’t repay them! Otherwise, you’d be in the bad books of a lender.