Personal Loan Tips
Do you have an issue or financial problem that has you needing extra cash in a hurry?
Considering a personal loan is probably the fastest way to accomplish your needs for money in short order. Personal loans for a short term are quick, easy and instant ways to get a bit of financial assistance right when you need it. Most personal loans are unsecured, so you won’t need to put up your home or automobile as collateral or security.
There are several advantages to getting a personal loan as opposed to a secured loan:
- Personal loans are accomplished relatively rapidly and they can be applied for online or on the phone. The funding is usually offered within a day.
- There is less paperwork than a secured loan as most of those will require the deed to your home or title to your car and this may involve a title search or house appraisal.
There are, of course, disadvantages to anything and personal loans are no exception to this rule. As a general rule, interest rates are higher when the loan is personal, since the risk to the lender is greater. Also as a general rule of thumb a personal loan from a loan company will involve a higher interest rate than one that you get from a bank, by virtue of the fact that this is the only way the loan company has to make money. You will need to take care and research the places from where you can get your personal loan carefully so that the interest is not exorbitant and more costly than it needs to be.
- A personal installment loan, which means that you will receive a one time sum.
- A personal line of credit.
With the former type of loan, also called an installment loan, you get the entire amount that you asked for at one sitting and your payments will be exactly the same amount of money each month so that you know ahead of time what you owe. Your payments never change unless you miss one.
The second type of loan is a personal credit line, which means that you may borrow different amounts at different times and be permitted to simply write a check that is provided to you by the loan company or bank. You will receive a total amount that you are eligible to borrow and be able to write a check for as little or as much as you like until you reach that amount. As you pay down the loan amount you will again be eligible to write another check. In other words you can use the loan over and over again.
See what this YouTube video has to say about financial planning and personal loans: