What is a Personal Loan?
Personal Loan describes any loan where money that is borrowed is to be used for personal use. If you are taking out a loan to fund something to be of personal use, or to help you out with personal issues, then that is a personal loan. Personal loans can be used for any number of things: debt consolidation, home improvement, paying off high interest rate credit cards, car purchases, vacations, etc. Most personal loans are unsecured, meaning they do not require security or collateral.
What is an Unsecured Personal Loan?
An unsecured personal loan is a loan that does not require collateral to back the loan. Usually, the people who would be eligible for this type of loan would be people who do not own a home, or people with bad credit. An unsecured loan normally means less risk to the person taking out the loan. This is due to the fact that a person will not have to use their home as insurance for the loan. However, due to the lack of collateral, the interest payments on any unsecured loan tend to be a little higher than with a secured loan.
What is the difference between a Personal Loan and a Bank Loan?
There isn’t much of a difference between a bank loan and a personal loan, they are essentially the same thing. However borrowing from a bank generally requires a very good credit history. Shopping around and getting loan quotes over the Internet allows you to compare interest rates and find the best deals.
Can I get a Personal Loan if I have Bad Credit?
Getting a personal loan with bad credit is no problem. Unsecured Loans for $1000 or less do not require a credit check or collateral, so if your credit is in bad shape it is not an issue. The only requirement for a bad credit personal loan is that you have a checking account with a bank. For loans of higher amounts, you may be required to be a homeowner and put up some collateral if your credit is not perfect. However, this all depends on the loan company and the amount of money you want to borrow.
How do I find the Cheapest Loan Rates?
To find the cheapest loan rates with the lowest interest you need to shop around. Getting online loan quotes allows you to compare the rates and terms offered by several or more lending companies. Doing this online saves time and is a lot quicker.
How long does it take to get approved for a Personal Loan?
Once you have completed the online application and applied for a loan quote you will receive an instant reply. Depending on the type of loan you are interested in, the amount of money you want to borrow, and the lending company, it can take between a few hours to a couple of days before you receive your loan. Most unsecured personal loans $1000 and under can be processed overnight and your money can be wired directly into your checking account.