In today’s economy many people are spending their money more wisely, saving, and budgeting to make the most of what they have. Sometimes situations arise and people need a little extra money just to make it from week to week or to make a purchase that isn’t in their budget.
When that happens to someone taking out a personal loan might just be the answer, and it might not be. Finding out everything that there is to know about a personal loan might just be the smartest financial decision that one can make.
What Exactly Is Personal Loan
A personal loan is a loan that is granted for personal use such as; medical, education, vacations, repairs on home or vehicles, or personal purchases of things like computers for personal use, sports equipment, home appliances, etc.
Personal loans are most often small loans and are often unsecured loans. That is not to say that a personal loan is not always unsecured, many of these loans are secured with collateral that is equal to in value or more than the amount of the loan or they are secured with the help of a co-signor.
Another name for a personal loan is consumer loan or signature loan. This type of personal loan is given based on the borrower’s credit score, payment history, as well as their ability to pay the loan back in a timely manner
Poor Credit and Person Loans Is It Possible
It’s possible for anyone to have trouble paying their bills from time to time and with the failing economy more and more people today are falling into the poor credit category. Having a poor credit rating does not mean that a person doesn’t want to pay their bills. Most often it simply means that this person has had some bad times and needs to get caught up.
Today it is possible to get poor credit personal loans although one will sometimes pay the consequences for having a poor credit rating by paying a higher interest rate. These loans are usually very small and require that they be paid back quickly, but it could be a step towards a better credit rating.
Another way to get a personal loan with a poor credit rating is with a Home Equity Loan. A home equity loan is using the equity that has built up in a home by paying for it for years as the collateral for a loan. One good thing about a home equity loan is that in many cases it makes it possible for the home owner to refinance the home at a lower interest rate. Which in-turn lowers mortgage payments, which helps the home owner to get even further out of debt.
In order to get a home equity loan a person must:
• Have a certain amount of equity built up in the home
• Have been making mortgage payments on-time for a certain amount of time
• Be able to prove the ability to repay the loan
It is pertinent that if you are considering a home equity loan that you take into account the fact that if you can’t repay this loan your home could very well be placed in foreclosure and lose your home. There are thousands upon thousands of homes being foreclosed on everyday because people can’t pay. Taking a home equity loan is no small matter; it is something that should be thought about seriously before making the final decision.
A few other really good ways to get a personal loan or persons with poor credit ratings are:
• Cash Advance Loans – Normally very easy to be approved, but as with any other convenience the interest rate is usually extremely very high sometimes as much as $30.00 on $100.00.
• Car Title Loans – This type of loan is very popular because of the ease with which a person can be approved and the time frame that they are normally approved in. Depending on the value of the barrower’s cars these loans can reach into the thousands, and are paid back on weekly or bi-weekly terms.
• Online Community Loans – This type of loan is a very high interest loan and is determined according to the barrower’s social security number and credit score. The interest rates here could be as high as 21 percent or more.
The bottom line here is that it is possible to obtain a personal loan with a poor credit score. The different types of personal loans make it obvious that a poor credit rating doesn’t mean the end of the line for a person’s credit, just a dip in the road.
Get A Personal Loan Online And Save Time
In this modern age most of our business is done online because it’s faster, easier, and it leaves us free to do the things that we want to do with our time. Getting a personal loan online is so simple; there are millions of people who use the internet everyday to take out a personal loan and many other types of loans as well.
The internet has become the largest financial hub in the world, people from all walks of life and all nations use the net to meet and greet each other constantly in business and in normal day to day life situations.