Personal Loans – Explaining Secured and Unsecured Personal Loans

Every now and then some of us may need a personal loan Running out of cash can happen at any time and that is when a personal advance can come in handy

Personal loans are also known as signature or unsecured advances This kind of finance can help when there is a need for money and you won't have to go through a long process or put up your home or car for collateral Personal loans online can be a convenient way to get this type of financial assistance Additionally, personal advance loans can be a good way to get cash that you need right away They are made for any purpose and do not have to explained as to the reason for needing them in order to get the financing

To be clear, the primary types of personal loans that exist are secured (protected) personal loans and unsecured (not protected) personal loans An individual loan that is safeguarded by collateral that was put up as surety is secured In other words, it requires back-up by some kind of financial asset like a person's boat or even someone's wedding ring If there is no repayment, a repossession will be made on the boat or ring or whatever item was used as the guarantee Check out online personal loans; they are convenient and the process is quick and easy

A loan, by an individual, that is never protected or backed up by anything is not secure; except by the signature of the person who wants the loan In most cases, this kind of advance for a person is based on their credit worthiness In addition, with an advance such as that, that is not secured, there is a higher interest rate and that is because of the additional risks associated with it There are several benefits that come with a personal loan: 1) easier to quality for and 2) the process to getting a loan is not as long It is important to note that there are two main benefits with a loan for person or individual: having a fixed monthly payment and a fixed loan term

Because the interest rate never changes, a person's monthly payment stays the same Most importantly, a fixed payment gives a person a feeling of stability; especially when it comes to their monthly budget The fixed loan term is yet another benefit that comes with this type of advanced financing Having a fixed loan term can help a person deal with their overall financial concerns This can lower a person's stress and give them a more confident feeling that they can pull themselves out of their financial dilemma

Personal Loans with Bad Credit There are options for people to apply for even if they have bad credit Financial lenders are aware of the many reasons people have fallen into that crevice of a low rating in the credit bureau: loss of jobs, identity theft, the primary paycheck in the family might stop, or starting a new job that causes a late payment to be sent in weeks after the due date There is nothing like the feeling of security with money in the bank, especially for an emergency Don't listen to the rumor mill, clients are approved every day for personal types of loans for bad credit To apply for a personal loan takes a few minutes to fill out an application

The lender must know what type of income is being received by the client It can be social security, disability checks, alimony or a financial settlement There are personal loans for bad credit that will fit a client's budget The financial information is vital for a loan officer to make a determination of how much money they will approve for a personal loan with bad credit Lenders must be certain that the amount of income received is enough to handle the re-payments of the loan

Be aware the personal loans for bad credit that are approved might have a high annual percentage rate or APR Some lenders will help the client by extending the length of time to repay the loan The lender helps the client with due dates that can be met with ease Read all the information and ask questions so there is a complete understanding about all aspects of the loan Remember the lender is there to help the client to secure a personal loan

When the loan is approved the funds are direct deposited in the client's bank account or a check is sent out through snail mail The bonus is when payments are made on time and the loan is repaid, the lender informs the credit bureau and that boost's the client's credit score The lender knows the clients history and will offer the client the opportunity to apply for another loan

Source: Youtube

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