A wedding is probably the biggest occasion in a person’s life and, generally one of the most expensive ones too. Hence, planning for it is always an overwhelming task. The list of things to do and buy seems eternal and so do the expenses – pre-wedding ceremonies and parties; invitations and gifts; wedding clothes and other essentials and accessories; church and reception arrangements and decorations (music, food, wine and cake) and honeymoon arrangements.
As it is a once in a lifetime event, my friend – Danielle – wanted to celebrate her ‘big day’ in a grand style. But, at the same time cost-effectively. So, before her wedding shopping, she did some credit shopping. I had heard a lot about the growing reliability and convenience of the online loan bazaar. So, I suggested her to first check out the online credit market.
We all know that research and cost comparison always help in getting the best possible deal. Loan products are no different. Instead of relying on a single source, she took advantage of the user-friendly online application forms to gather a few competitive quotes from different lenders.
The most basic loans in the world of credit are the personal loans. Available in both secured and unsecured form, these loans can be availed for any personal need. As both sub-categories have pros and cons, it pays to compare loans and choose the most suitable one. Basis of comparison should be monetary requirement and urgency; capability or willingness to pledge collateral; and APR and other loan benefits.
As Danielle was interested in a small-scale wedding, her credit requirement was limited. Hence, there was absolutely no need for her to get into property related legalities or risk her property for a small amount. As a secured loan can only be availed by pledging collateral and is suitable for a big monetary requirement, she opted for an unsecured loan deal.
She got the desired amount with benefits like no collateral (no deposit against the loan amount), less paperwork (no red tape), quick service (fast loan processing) and no immediate risks in the event of repeated defaults or non-repayment.
As the stakes are normally high for the lender, unsecured loans lack flexible features of secured loans. So, Danielle had to compromise with high APR and fixed payback terms and conditions. But, it helped her to plan her wedding in advance and make it the most memorable day of her life.
