What is a personal loan?
There are times in life when you need extra funds. Maybe you are looking for debt consolidation, need to cover a child’s tuition or there are unexpected home improvements that need to be handled immediately.
No matter the reason for your loan, a personal loan is a great way to get cash when you need it. These are typically unsecured loans that do not require collateral, using your credit score as a key factor when determining whether you are approved and what your interest rate will be. The interest rates are usually lower than the ones you would receive with a credit card or emergency loan, and you can repay your loan over time with monthly payments.
How can I get a personal loan?
You can receive a personal loan from three main types of lenders: a bank, a credit union or an online lender. Additionally, using an online marketplace can help you shop numerous lenders at the same time. To get started, you will need to provide certain information, such as your Social Security number, employment information and address history. Once you receive your offer, you can compare it against the others you receive to find the best APR and most favorable terms. It is also important to check the fine print for hidden penalties or payment requirements so you know what kind of arrangement you can expect long-term with your lender.
Are personal loans safe?
A personal loan is generally a safe way to receive a financial boost when you need one. It is important never to borrow more than you can reasonably repay because you will pay for this help in the form of mounting interest. High interest rates and unrealistic repayment terms from predatory lenders can quickly spiral you into more debt than you can repay. Not all lenders have your best interest at heart, so you should always do business with a reputable and reliable financial institution like the ones we recommend here.
When you exercise caution and find a reasonable interest rate with flexible terms that you can afford, a personal loan can be an enormous help in navigating life’s more serious bumps and bruises.