If you are looking to borrow money over a period of less than
ten years, whether you need the money for a purchase or perhaps
to repay existing debt, then a personal loan may be suitable for
Unlike a home or auto loan, your personal loan is usually
unsecured. This means that there is no collateral provided and
the only guarantee that a borrower can give the lender is his
reputation for good credit. This is also one of the main reasons
why they have interest rates that are higher than most other
Personal loans borrow an agreed sum of money for an agreed
length of time, anywhere between five months and ten years. The
lender offers you a personal loan because they make money by
charging interest on it, though the interest rate can be either
fixed or variable. In most cases you'll get a decision within 24
Getting a secured loan can be tricky, but below are some steps
that can make securing a personal loan easier.
If at all possible, start off with a secured personal loan.
Secured personal loans will first, allow you to secure a higher
amount of money on your personal loan at a lower personal loan
rate. They may also give you more incentive to pay back your
personalloan regularly since property may be at risk if you
default on your personal secured loan.
Research Your Loan
Getting a personal loan is a lot like getting a car. You need to
find out as much information from as many personal loan
"dealers" as are available. The internet is a great place to
begin your search for a personal loan. It's secure and easy to
use, and when things start getting frustrating you can just turn
off your computer or follow another research method for your
Get as many free quotes for your personal loan as you can. Don't
just look around where the best you can do is find teaser rates
listed in bright flashy letters. Sit down online for some time,
fill out some forms, and make the loan officers compete for your
business. Many websites offer same-day responses on your
personal loan request. Use the Internet to your benefit by
applying online for your personal secured loan to see what you
will qualify for.
Make a Plan
Take your quotes and use them to make a budget for your loan
payments. If the plan just doesn't look right, don't accept it.
You can always do more research. Use the loan officer as a
resource - ask as many questions about your personal secured
loan as possible. Ask what the rates were a month ago, ask what
you would need to do to qualify for a better rate, ask anything
that will help you get a better rate, a better amount, and a
When making your plan, remember that larger loans will result in
a longer repayment term. It is not uncommon for the purchase of
a car to established with a repayment term of 3 years while the
term for home improvement loans can be for much longer terms,
sometimes as long as ten years.
Making repayments under personal loans is the same as servicing
any debt you may have. If you find that you have difficulty in
making your repayments, seek advice from your lender at the
earliest opportunity. The earlier you tell them of the
difficulties the more understanding they are likely to be.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the www.directonlineloans.
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