Types of Personal Loans

Personal loans are a type of loan that you might apply for when you need money for things such as car repairs, debt consolidation or home improvements. In some cases, you might apply for a personal loan if you just need some extra cash to pay the bills. With secured loans, collateral is required, and with unsecured personal loans, no collateral is needed.

If you are applying for personal bank loans, you are normally required to have a steady source of income and a good credit score. The life of the loan can range from a year to 30 years, and interest rates will vary among lenders. Make sure you read the terms and conditions of the loan.

You might be able to obtain a better interest rate if you apply for a secured personal bank loan. If you need a larger amount of money, a secured loan might be your best option. Many people take out these types of loans to pay for college expenses, start a new business or to consolidate debt.

If your credit is not great, bad credit personal loans are available. A cash advance, or payday loan, is a short-term loan in which you can receive up to $1500 in cash. No credit check is performed; therefore, your credit is not a factor. To qualify for personal credit loans, you need a steady source of income and a checking account.

If you have bad credit and need a larger amount of money, some banks are now starting to offer bad credit loans. It would be wise to check with your bank. If you are a loyal customer, they might be more willing to lend you money. Some lenders might want you to provide collateral.

In some cases, you will need to look for private personal loans. These lenders will be a little more difficult to find; however, they might offer you flexible terms and affordable interest rates. Before applying for a loan, you need to ask the lender about the credit requirements.

Personal loan rates fluctuate, so you need to shop around to find the best rate available. It is wise to use a personal loan calculator to estimate your monthly payment. You will then be able to get a better idea of how much you can afford. You can then apply for a personal loan, and get the financial help that you need.