Personal loan options are many and varied as to terms and requirements. Determining factors in what options are available to you would depend on what you intend to do with the loan proceeds, the length of the loan, etc. Those factors and many others help lenders determine what your loan is going to cost.
When you start investigating your options, consider a home equity loan-
In this type of loan, the lender uses the amount of collateral you have in your home as security and to decide how much you will be able to borrow. A huge plus for this type of loan is that it will usually carry the lowest interest rate available and require minimal qualification. The other great thing about home equity loans is that they usually can be drawn out over a longer period of time, which also serves to give you a lower repayment rate.
In addition, these loans carry tax advantages that other loans do not. So it is very possible that you can end up being able to deduct the loan interest from your taxes—a very smart way to borrow indeed!
Signature loans are unsecured by collateral of any kind. As you would expect, the interest you pay for one of these loans is going to be higher. Plus, because of the higher risk involved for the lender, it is much more difficult to qualify for these loans, and your credit score weighs heavily in determining your eligibility. These unsecured personal loans are viable for those who own nothing of value to offer as collateral, as long as there is no problem with their credit rating.
Because the only recourse a lending institution has with this type of loan is through the court system, higher interest rates are charged, and the tendency is not to lend any more than $25,000, if that.
However, in some instances, the higher interest rate with this kind of personal loan is more than outweighed by its advantages, which entail no tying up of personal property and no necessity of providing a financial statement or tax returns.
Normally though, even if you have bad credit, if you have assets of value to offer a lender as collateral, it is usually better to go for a secured loan to reduce not only the interest rate, but also the monthly payments because of the longer loan terms, which are not the case with unsecured loans.
Basically these signature
loans are loans you can use for anything
including fast cash or personal loans for financing
on a Panasonic plasma big screen tv for example.
Spend the money as you wish. To get the lowest
possible interest then you want an secured personal
loan where you use your house or property to obtain
the money. Signature loans are normally small
personal loans ranging from $100 to $5000.
Cash advances via credit cards -
Of course, credit cards are widely used for "loans," and there is nothing wrong with that—as long as you do so for only a short period of time. Ideally, you would use a card with an "introductory" rate of interest that is lower than normal (no interest in some cases), and that is probably going to be for a year or less. If so, it is possible that you will pay nothing for your loan ... but only if you do, in fact, pay it off in the allowed amount of time.
If you do make such use of a credit card with an introductory interest rate, you also may qualify for other perks, like points that can be redeemed for merchandise, or cash back, or even airline miles.
Car title loans which are pretty easily had, either via a dealership or a lending institution, are merely personal loans using the collateral you have in your vehicle to secure the loan. These loans can be easy to qualify for as well. But car title loans cannot be had unless you own the vehicle outright, which means it has to be paid off first. Dealer incentives are usually offered if the dealership does its own financing, but should you opt to go this route, be wary of hidden charges.
Other secured loans
Although a bit more rare, collateral other than homes or vehicles can be used to secure a personal loan. This would include major assets like rare paintings, antiques, jewelry, coin and stamp collections, stocks, and anything else of high value that is marketable.
Pay day loans - If you are one with a bad credit score, you may be able to get a short-term loan, which is usually referred to as a "payday" loan. And by short term we're talking about a two-week term, which will hinge on your employer's payday schedule. Realize that these loans do not come cheaply! Payday loans carry the highest cost of any personal loan available today. Use them only if you have no other alternative, and pay them off as soon as possible.
Most "payday" lenders will ask for a post-dated check in the amount of the loan, including the lender's fees. Most of these post-dated checks will be for the date of your next paycheck. The lender's fees are state regulated in many cases, but the general range is $15 to $35 per $100 lent. If you do not meet your commitment, these fees can go up.
Installment loans are a great alternative to those pressure-ridden payday loans. Although similar, installment loans give you the option to pay them back in smaller payments on each pay day, instead of having to take the whole amount out of your next check. This is a God-send for financial emergencies!
Also, bad credit is no problem with installment loans, as they require no credit checks in most cases—and they usually take just a few hours for approval as well.
Bad credit loans
There actually are designated bad credit loans available today because of the mounting number of people who have bad credit scores. But beware and do your homework, because that attractive interest rate that you see advertised online or elsewhere is not necessarily the rate you will end up with at that particular lending institution, and that is because lenders are allowed to advertise their cheapest interest rate so long as that is the rate that at least two-thirds of their loans carry. You may fall into the unlucky one third!
There are a lot of bad credit loans online, and as with anything else involving money online, you need to be especially cautious in this area. Before you go loan shopping, look at all options. Decide beforehand the amount you wish to borrow and, more importantly, how much of a regular payment you can fit into your budget.
Learn about personal loan options with our online guide to credit.
One caveat: Do not apply to many places, because credit bureaus record each time an inquiry is made. This alone can negatively impact your credit score. Narrow your choices down before you make the first inquiry by choosing the optimal loan for you, based on your own personal needs. One size does not fit all here!
Additional Personal Loans available: