When it comes to personal loans, the experts will tell you that loans are serious mattes and they should never be taken out for frivolous things. This is very true because loans can cause problems when it comes to paying them back. If you desperately need something or it will have a massive impact on your life, you should seriously look into obtaining finance in the most effective way. However, human nature being what it is, you’ll find that plenty of people will have taken loans out for matters and purchases that wouldn’t quite be classed as being essential items.
Some of these can be quite funny and as long as the person paid the loan back in good time and in full, there is nothing to worry about. However, what can seem like a great idea at one point may suddenly become a terrible idea in the near future, especially if the repayments start to impact on your life. This is why taking out a loan is a big decision and you should give it serious thought before making an application. Of course, when you read about some of the items that people have used a loan for, you’ll find that there can be a lot to smile about.
Some People have Weird ideas about what is essential
Every so often, you will find that major banking institutions will provide information about some of the stranger reasons they have received for people looking to take out a loan. Clearly the names of the people who have made the application have been protected but the information included in the application has been well worth reading at times.
Lloyds TSB hit the headlines when they went public with a list of the reasons that people had for applying for a loan. No matter what sort of thing you have an interest in, it is unlikely that you will have put too much thought or effort into buying a tiger. This is the sort of conversation that may arise after a night out in the pub but to actually move that conversation on and then apply for money to buy a tiger is another thing altogether. You would have to hope that the applicant had the means to look after and care for a tiger in case they were successful in their application. You would hate to think of a tiger being forced to live in the sort of premises that a large dog may struggle with!
There is a Lot to be said for making a Sound Investment
Some people believe that buying an item can be a sound investment, and there is a lot to be said for sinking some money into assets that will provide you with a great return in the future. In the modern era, it would be fair to say that plenty of people love celebrities and you could argue that some rare items of celebrity memorabilia could provide you with a great return in the future. It would be a gamble but you could find yourself making a positive return on your investment. However, the person who applied for a loan to be able to buy a dress worn by one of the Spice Girls probably wasn’t looking to make an investment that would put their kids through college or further education. Other great reasons listed by the bank include:
- Someone looking for funds to buy a robot
- Someone looking for support in baking the largest cake in the world
- Someone looking to place an online bid to win a date with a footballer
The bank tried to balance things out in the end by stating that the vast majority of loan applications were made for serious matters. Lloyds TSB stated that the top three reasons for making a loan application were:
- Home Improvements
Requests to borrow money to buy a tiger, build a robot and bake the biggest cake in the world were among the loan applications. If you are serious about needing finance, you may find that a guarantor loan is going to be a smart way to obtain finance.
A guarantor loan can offer a more attractive rate of interest due to the fact that someone is willing to act as your guarantor, which provides the loan company with confidence. If you really need a loan, and it is for a great reason, you’ll find that a guarantor loan can be of benefit.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.