At some point, you may find yourself faced with the prospect of paying for a loved one’s funeral when there are no funds set aside for this purpose. One financial tool that you may be evaluating is a funeral loan.
What is a funeral loan?
A funeral loan is a personal loan that is used to pay for funeral or burial expenses. Loans for funeral expenses are available through banks, credit unions, and other alternative lenders.
Some funeral loans are designed so that the proceeds are sent directly to the funeral service provider. Others allow you to use the funds at your discretion. This type of loan can be riskier since you will still be responsible for paying funeral expenses should you use the money for some other purpose.
Regardless of the type of loan you secure, you are responsible for repayment at the terms specified in the lending agreement.
Funeralwise has partnered with LendingUSA to offer our visitors a reputable option for funeral financing. LendingUSA offers a low-cost funeral loan and will provide a no-obligation quote to help you decide if this is the right financial tool for you.
LendingUSA works with the funeral home to make sure that your payments are processed. This frees you up to spend time with your family as you honor the life of your loved one. The National Funeral Directors Association exclusively endorses LendingUSA’s funeral financing program.
To get more information and to find out if you are eligible for a LendingUSA funeral loan, click on the “Apply Now” button above.
Funeral Loans: Advantages
The biggest advantage of funeral loans is that they are readily available and funds can be secured quickly. You can spread payments over time, and with a fixed payment loan, your monthly expenditures will be predictable.
Depending on the terms of the specific loan, you can likely pay the loan off early will no penalty. Because they are personal loans, funeral loans do not typically require collateral. Instead, they are granted based on your good credit or track record with the lending agency.
Funeral Loans: Disadvantages
Personal loans can carry high interest rates. Since they are normally unsecured, the lending agency will require a greater return on their investment.
This type of loan is granted based on your creditworthiness. That means that they are among the most difficult type of loan to secure. Another factor that makes this type of loan more difficult to get is the fact that it will be used for a service that cannot be repossessed for non-payment. While you may be able to get a funeral loan despite having poor credit, it will likely carry a higher interest rate.
Funeral Loans are a Good Option
Paying for a funeral is a significant challenge for many, and perhaps most, families these days. Taking out a loan from a credible lender is a good option to consider. Your personal financial circumstances will affect whether or not using a personal loan for funeral expenses is right for you.
Be sure to evaluate all of your financial options before finalizing your decision to borrow. As with all loans, you need to make sure that you understand all the terms and take the time to read the fine print.