Discover Personal Loans Survey 2017: Getting a personal loan enabled a majority of people to achieve financial goals

RIVERWOODS, III .– () – According to a recent 2017 survey by Discover Personal Loans, 68 percent of those who took out a personal loan said it helped them meet their financial goals. Additionally, 70 percent of people said that taking out a personal loan made them feel financially responsible.

The two main advantages of a personal loan were lower interest rates on demand and quick distribution of funds. Twenty-two percent chose lower interest rates compared to other loan options, and 21 percent said the funds will turn over quickly. Other benefits included no collateral required, fixed interest rates, and fixed monthly payments.

Ways To Use A Personal Loan

More than a third, 38 percent, of those surveyed have taken out a personal loan in the past. Of all respondents, 26 percent named high medical expense as the most popular potential use for a personal loan, followed by 22 percent for debt consolidation and 13 percent for small business finance.

Personal loans can be used in a number of ways to help people save money and meet their financial goals. For example, more than half of respondents have less than $ 5,000 in savings to cover unexpected or urgent expenses, ”said Dan Matysik, vice president of Discover Personal Loans. “A personal loan can be an intelligent financing instrument to cover these costs.”

Interest rates are top-of-mind

People consider several factors when deciding on a personal loan. According to the survey, 43 percent of respondents said it would be most helpful to know their interest rate before applying for a personal loan, followed by 16 percent about repayment terms and 15 percent interested in knowing the monthly repayment amount.

For those who have already taken out a personal loan in the past, knowing the interest rate was the most important factor in choosing their personal lender, one that was consistent across all age groups.

Outside of the interest rate, the answers varied based on age. Respondents between the ages of 23 and 29 chose fees (19 percent) or loan amount (18 percent) as the most important factor when choosing a personal lender.

In comparison, these points were not as important for those surveyed aged 65 and over, only 12 percent considered fees or the loan amount to be the most important factor.

“The bottom line is that when choosing a personal loan, all borrowers should consider borrowing costs, which include both interest rates and fees. Discover Personal Loans offers competitive loans – with fixed rates and no commitment fees – and useful resources such as the Check Your Rate tool, which allows prospective borrowers to determine their interest rate before applying. This allows them to better understand the total estimated cost of the loan, ”said Matysik.

Ultimately, borrowers want trust

A lender’s trustworthiness is also an important consideration. Outside of the interest rate, 18 percent of respondents who have taken out a personal loan in the past chose trustworthiness as the most important factor when choosing a loan.

“Having confidence in your lender is key to purchasing a personal loan. The first step in building that trust is education, and there are several credible sources from which borrowers can gather information, ”said Jeff Rose, founder of Good Financial Cents and partner of Discover Personal Loans. “You can get information from financial blogs or the lenders themselves. For example, Discover Personal Loans offers a variety of online educational resources and provides customer service seven days a week to answer questions and guide customers through the loan process. ”

About the survey

The national survey of 2,000 adults was commissioned by Discover Personal Loans and published by Rasmussen Reports, an independent survey research company (http://www.rasmussenreports.com), 28.-30. June 2017. The sampling error margin was +/- 2 percentage points with a confidence level of 95%.

About discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in the US financial services space. Since its inception in 1986, the company has grown to become one of the largest card issuers in the United States. The company issues the Discover Card, America’s pioneer in cash rewards, and offers private student loans, personal loans, home equity loans, checking and savings accounts, and certificates of deposit through its direct banking business. It operates the Discover Network with millions of merchant and cash access locations; PULSE, one of the leading ATM / debit networks in the country; and Diners Club International, a global payment network accepted in more than 185 countries and territories. For more information, visit www.discover.com/company.

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