A wide variety of financial institutions provide personal loans to borrowers seeking funding. You can obtain a personal loan from a traditional bank, a local credit union, and from online lenders. While most institutions generally have very similar application processes, the convenience of working with online lenders might make their personal loans the easiest to get. With banks and credit unions, it may take more time to get approved and require several trips out of your home. Online lenders can make it possible for you to apply, be approved, and receive personal loans from the comfort of your own home.
While getting personal loans online may be easier than other, more traditional institutions, it is still wise to look into your other options to ensure you are getting the best deal. Comparison shopping is a good idea when trying to find the most competitive interest rates on personal loans. Just because something is the easiest solution does not necessarily mean it is the most financially advisable.
Personal loans are the most versatile lending product next to credit cards because they can be used for nearly any purpose. You can find small personal loans of only a couple hundred dollars with short-term lengths just to help you make it to your next paycheck. And you can find personal loans with amounts over $10,000 with much longer repayment terms. Depending on your unique needs and financial situation, you should be able to find what you are looking for.
All personal loans are typically unsecured, meaning you are not borrowing money against any kind of collateral. There are both benefits and drawbacks to unsecured loans. A significant benefit of an unsecured personal loan is that you don’t need to worry about an asset being seized because it was used as collateral. However, there being no collateral can also make it more difficult to qualify for a loan for those who don’t have good credit. Because of this, personal loans that are unsecured tend to have higher interest rates than secured loans, particularly for individuals with poor credit scores. Do some research on the interest rates you might be able to qualify for with a few different lenders before making a final decision.
