When looking for personal loans, some people ask what the best types are.  Basically, they want me to give them the best recommendation that I can.  I don’t mean this as a cop-out, but my answer usually starts with “it depends”.  Personal loans come in a few different flavors.  Picking out a type isn’t necessarily a matter of personal preference, and it’s not a matter of across the board efficacy.  Different types of personal loans are the best in different situations.

I’d like to go over a few different types of personal loans to illustrate what I mean.

Traditional Bank Loans

Unlike other types of personal loans, traditional bank loans can be hard to get.  Not only do you need to have good credit to these loans, there is also a lot more paperwork on top of a long waiting time for approval.  These loans are the best to get if you have good credit, time, and patience.  Because traditional bank loans normally have the best terms, they are the hardest type of personal loans to get.  Also, they tend to be secured loans, which means they are tied to collateral.

Payday Loans

Personal type loans are unsecured personal loans.  They are very easy to get.  This is because you don’t need good credit to get them, they require very little paperwork, and the approval time is quite short.  Typically, people get these loans for short-term expenses.  They are best to get when you find yourself in a bind.

Title Loans

Title loans are loans that use your vehicle’s title as collateral.  These personal loans are very easy to get, just like payday loans. However, if you don’t pay back these loans on time, it’s possible to have your vehicle repossessed.  Also, just like with personal loans, these are best to use when you have no other way to get money for your immediate needs.

Whatever you need money for, be sure check out our website’s services.  If you have any questions, feel free to contact us, or please leave a comment.  We at DrCredit.com would love to hear what you have to say.