Sometimes we need extra money to finance a special project, like a trip, an anniversary gift or just to go shopping. Other times the need of extra money comes from an emergency like a broken car or an almost due bill that must be paid. Whatever the situation is, a personal loan can be a good and fast solution.
What Kinds Of Personal Loans Are Offered?
We can start by separating personal loans into two categories: long term loans and short term loans. Within long term loans, you have secured and unsecured loans. Repayment terms vary according to the requested amount, you can have one or two months terms or up to ten years. It may vary, and will also depend on the chosen loan and the lender’s conditions. Short term loans, in the other hand, are meant to solve urgent needs, these loans’ repayment terms are no longer than a few years 貸款.
Long Term Personal Loans
The most common of these loans are secured and unsecured personal loans; secured loans are based on a collateral that works as a security measure for the lender. Collateral may be, depending on the requested amount, a house, a car, or any other item that may cover the amount of the loan is something happens and you are not able to repay it.
These loans are also based upon your credit records. If you have a good credit score you will be able to request a higher amount of money than if your credit is not so good. The good thing if your credit is not good enough, is that even when you cannot borrow a huge amount of money you will still be eligible.
Secured loans can have very convenient interest rates and fees. You may also find great repayment conditions. You just have to search for different lenders and decide which loan is more like what you are looking for.
Remember to get to know all the terms and conditions of that loans that you are thinking to apply for. Some lenders may charge you a penalty fee if you intend an early repayment.
Different from secured loans, unsecured loans do not require a collateral to secure the repayment. These loans are usually a little more expensive, since the lender is taking more risks. The borrowed amount will always be lower than the amount offered with a secured loan, and this will also depend on your credit score. Generally, repayment terms offered for unsecured loans are shorter than those terms offered for secured loans.
Short Term Personal Loans
As said before, these loans are meant for those unexpected situations that need fast solutions. In this group we can place, short term personal loans and payday loans.
Short term personal loans are designed to offer a limited amount of money, that is around $20,000 depending on the lender, and usually have to be repaid in no longer than five years. Depending on the lender, you can be requested to place a collateral or not, in order to apply. These loans have higher interest rates than long term loans. As higher your credit score is, better will be the loan conditions you will be able to get.
Payday loans are the other option in short term loans. These kinds of loan’s terms are no longer than two weeks, and the borrowed amounts of money are not very high. As repayment terms are no long, you will be eligible even with bad credit. Of course, with a good credit record, you will get better conditions.
You can search for a lender on the Internet and apply from your computer. The response is almost immediate and you can have the requested money in your bank account the same day you fill in the forms. The only requirement is to provide your bank account details. You can either repay the money in your lender’s office or give your permission for taking the money back from your bank account on the loan’s due date. Some lenders may also require you to leave a signed check for the loan’s amount as a collateral.