Personal Loans Questions

Girl surrounded by shopping bags
Nov, 9, 2011
Since most personal loans are unsecured—meaning they are not backed by anything aside from a borrower’s promise to pay—their interest rates tend to be higher than rates for mortgages or auto loans. Because there is virtually no collateral for a lender to claim in the event of default, lenders reserve unsecured personal loans for borrowers with higher credit scores. Those they approve for a personal loan are then offered different rates depending on how good the applicant’s credit is.
Paper showing credit rating
Nov, 9, 2011
When it comes to obtaining the best possible loan price, nothing matters more than an individual’s credit score. In order to acquire the most amount of money for the least amount of payment, you will need to watch and nurture your credit score.   Some have great credit while others would rather deny its existence altogether. There is good news, though: You can always work toward improving your credit score. The Credit Report
Business man signing document
Sep, 21, 2011
When a borrower has poor credit, a co-signer can often be a good solution for getting approved for a larger loan amount with a better rate. The co-signer essentially backs the loan with his or her own personal finances. An individual who might not be approved for a loan based on his or her own credit score can be qualified for the loan they need if the co-signer has a high credit rating. The co-signer’s involvement in the loan can expedite the approval process, and especially helps if the borrower is applying for an unsecured loan that is not backed by collateral.
Man with "Questions?" sign
Sep, 12, 2011
A personal loan from a private source like a bank is a short-term solution for those in need of some fast cash to help them in a financial crisis. One situation may be overwhelming credit card debt. There are situations in which taking out a personal loan can help reduce payments and make credit card debt more manageable; however, there are many aspects of the process that might make this option less beneficial and even more expensive in the long run.
Open safe
Sep, 9, 2011
For individuals in need of cash fast, personal loans can be a quick short-term solution. There are two different types of short-term personal loans, secured and unsecured. If a personal loan is secured, the borrower has put up an asset, such as property, as collateral if he or she fails to make payments, in which case the lender can possess that asset as replacement payment. Most commonly, the asset is the borrower’s home or car, but it can be anything that he or she owns that is of a high enough value.
Computer mouse with a magnifying glass at the end of its cord
May, 23, 2011
Loan application processes are bound to vary according to the regulations and preferences of various lenders, though broad trends emerge in terms of what information and documentation borrowers will need in order to successfully apply for a loan. Personal loan applications place less emphasis on the details of the item to be purchased than other loan types, and focus on the borrower's personal circumstances and potential to repay the loaned amount.