There are as many uses of personal loans as there are people who borrow them and most lenders will be happy to allow you to borrow for whatever purposes you desire. However, there are a couple of general principles that you should apply when deciding how much to borrow, what type of loan to take out, and how long you want to take to repay the loan.
If you want to read more about these general principles regarding a personal loan, I suggest that you go to the Loan Info Center, where you can read this article and hundreds of other articles related to loans and personal finance.
Tuesday, June 13, 2006
Sunday, May 07, 2006
Personal loans – a fast and easy solution
What is a personal loan? A personal loan is money that a financial institution, like a bank or an internet lender, lends to an individual for a specific personal purpose.
A personal loan is an amount of money offered on the condition that it will be paid back at some later date. Personal loans are available in a multitude of formats and can start as low as $1000. The amount and interest rate of the personal loan depend upon the purpose of the loan. Interest rates also depend on the presence of collateral. In case no collateral is used, an unsecured personal loan, the interest rates are likely to be higher; oftentimes as much as a full percentage point.
When looking into personal loans, you should consider a number of factors. Comparing the interest rates and terms on a selection of deals will ensure that you get access to cheap personal loans so you can enjoy lower monthly repayments. And if you go online to browse deals and apply personal loans lenders can offer instant quotes as well as really competitive interest rates.
The Internet has fast become the leading source of cheap personal loans. Many financial consumers that are looking for personal loans for a variety of reasons tend to go online to get a great deal. Not only can you check out the various deals on personal loans online, but you can also apply for personal loans online. This can help to speed up the process and can result in an instant decision in many cases.
You borrow an agreed sum of money for an agreed length of time, anywhere between six months and ten years. The interest rates can be fixed or variable. Unless the personal loan is taken in the form of a line of credit, you will receive a lump sum, equal to the amount of the agreed personal loan and in return you agree to make regular (mostly monthly) payments. Repayments normally cover both the interest due and a partial repayment of the outstanding capital.
If you are considering a personal loan to run alongside other forms of personal credit such as overdraft and credit cards, you must give careful consideration to whether you will be able to afford the total of your payments. When considering the situation it is wise to take into account your ability to pay should you lose your employment or were you unable to work due to illness. And what the consequences would be of not being able to make you monthly payments for a certain period of time.
Making repayments under personal loans is the same as paying off any debt you may have. If you find that you have difficulty in making your repayments, seek advice from your lender at the earliest opportunity. The earlier you tell them of the difficulties the more sympathetic they are likely to be. They may, for instance, accept a reduced repayment until your circumstances improve.
Karin Boode is the founder of the Loan Info Center, and the author of many loan related articles. Her Personal Loan Info page provides personal loan related articles and her blog is available for personal loan related questions and comments.
A personal loan is an amount of money offered on the condition that it will be paid back at some later date. Personal loans are available in a multitude of formats and can start as low as $1000. The amount and interest rate of the personal loan depend upon the purpose of the loan. Interest rates also depend on the presence of collateral. In case no collateral is used, an unsecured personal loan, the interest rates are likely to be higher; oftentimes as much as a full percentage point.
When looking into personal loans, you should consider a number of factors. Comparing the interest rates and terms on a selection of deals will ensure that you get access to cheap personal loans so you can enjoy lower monthly repayments. And if you go online to browse deals and apply personal loans lenders can offer instant quotes as well as really competitive interest rates.
The Internet has fast become the leading source of cheap personal loans. Many financial consumers that are looking for personal loans for a variety of reasons tend to go online to get a great deal. Not only can you check out the various deals on personal loans online, but you can also apply for personal loans online. This can help to speed up the process and can result in an instant decision in many cases.
You borrow an agreed sum of money for an agreed length of time, anywhere between six months and ten years. The interest rates can be fixed or variable. Unless the personal loan is taken in the form of a line of credit, you will receive a lump sum, equal to the amount of the agreed personal loan and in return you agree to make regular (mostly monthly) payments. Repayments normally cover both the interest due and a partial repayment of the outstanding capital.
If you are considering a personal loan to run alongside other forms of personal credit such as overdraft and credit cards, you must give careful consideration to whether you will be able to afford the total of your payments. When considering the situation it is wise to take into account your ability to pay should you lose your employment or were you unable to work due to illness. And what the consequences would be of not being able to make you monthly payments for a certain period of time.
Making repayments under personal loans is the same as paying off any debt you may have. If you find that you have difficulty in making your repayments, seek advice from your lender at the earliest opportunity. The earlier you tell them of the difficulties the more sympathetic they are likely to be. They may, for instance, accept a reduced repayment until your circumstances improve.
Karin Boode is the founder of the Loan Info Center, and the author of many loan related articles. Her Personal Loan Info page provides personal loan related articles and her blog is available for personal loan related questions and comments.
Sunday, April 30, 2006
Personal Loans
A personal loan, as the name suggests, can be for any personal reason. Examples could be a son or daughter going to college, a new car, or any other sizeable purchase you may need to make. Personal loans can, instantly, provide you with the required means, without anyone’s help.
Once you decide that you want to take out a personal loan, you need to look into which bank or company to go to. Government, private banks and loan companies can all be a resource to you. First step is to find out where the interest rate is most favorable, although this is not the only parameter that is of importance. Amount of paper work involved and service provided, may play a role in your decision also.
Generally speaking, there are three types of personal loans:
1. Secured personal loans. For this type of personal loan, banks will keep some kind of security, like your house or your car, depending of the amount of the loan. This kind of security is called collateral. If you are unable to repay your loan, the collateral can be confiscated by the bank giving the loan. So, if you are not absolutely sure you can repay the loan in the appropriate timeframe, realize that you are putting your house or car on the line, But having collateral has it good sides also. Interest rates are usually lower, since the loan in secure.
2. Unsecured personal loans. As the name suggests, no collateral is required for this type of loan. They can be obtained quickly, but because of the risk the lender is taking, the interest rates are normally higher, and the amount of money you can loan is generally lower.
3. Line of credit refers to setting up a limit to the amount that will be available to you, without paying out the full amount at the time of close. You have the flexibility to take out as much as you need, obviously with a limit. Credit cards, in essence, are an example of a line of credit. Interest rates will only apply to the amount you withdraw from the credit limit.
As the above indicates, interest rates vary with the type of personal loan chosen. If time is of the essence and interest rates are not your main concern unsecured personal loans seem to be your best bet. Lines of credit can be useful, e.g. when you are doing a construction project and you do not yet know the exact costs involved.
Regardless of the loan you choose, make sure you know the interest rate and the length of the loan. Calculate the monthly installments, and assess whether this is realistic for your situation. The lender should give you upfront the number of skipped monthly payments and/or bounced checks they can accept. Make sure that you do not exceed this number for there can be very serious legal repercussions. If you can adhere to the agreed payment schedule, a personal loan can be a blessing in a time of need.
Karin Boode is the founder of the Loan Info Center, and the author of many loan related articles. The Loan Info Center strives to provide valuable information regarding any type of loan. She has a blog specifically for personal loan related questions and one that focusses on secured loans.
Once you decide that you want to take out a personal loan, you need to look into which bank or company to go to. Government, private banks and loan companies can all be a resource to you. First step is to find out where the interest rate is most favorable, although this is not the only parameter that is of importance. Amount of paper work involved and service provided, may play a role in your decision also.
Generally speaking, there are three types of personal loans:
1. Secured personal loans. For this type of personal loan, banks will keep some kind of security, like your house or your car, depending of the amount of the loan. This kind of security is called collateral. If you are unable to repay your loan, the collateral can be confiscated by the bank giving the loan. So, if you are not absolutely sure you can repay the loan in the appropriate timeframe, realize that you are putting your house or car on the line, But having collateral has it good sides also. Interest rates are usually lower, since the loan in secure.
2. Unsecured personal loans. As the name suggests, no collateral is required for this type of loan. They can be obtained quickly, but because of the risk the lender is taking, the interest rates are normally higher, and the amount of money you can loan is generally lower.
3. Line of credit refers to setting up a limit to the amount that will be available to you, without paying out the full amount at the time of close. You have the flexibility to take out as much as you need, obviously with a limit. Credit cards, in essence, are an example of a line of credit. Interest rates will only apply to the amount you withdraw from the credit limit.
As the above indicates, interest rates vary with the type of personal loan chosen. If time is of the essence and interest rates are not your main concern unsecured personal loans seem to be your best bet. Lines of credit can be useful, e.g. when you are doing a construction project and you do not yet know the exact costs involved.
Regardless of the loan you choose, make sure you know the interest rate and the length of the loan. Calculate the monthly installments, and assess whether this is realistic for your situation. The lender should give you upfront the number of skipped monthly payments and/or bounced checks they can accept. Make sure that you do not exceed this number for there can be very serious legal repercussions. If you can adhere to the agreed payment schedule, a personal loan can be a blessing in a time of need.
Karin Boode is the founder of the Loan Info Center, and the author of many loan related articles. The Loan Info Center strives to provide valuable information regarding any type of loan. She has a blog specifically for personal loan related questions and one that focusses on secured loans.
Friday, April 28, 2006
A Personal loan or your credit card; what is the best choice?
Should you take out a personal loan or are you better of charging your credit card? If you have a short-term cash crunch and you have a credit card that offers a low fixed or introductory rate, you may be better off charging your needs instead of taking out a guaranteed online personal loan. Because personal loans are unsecured, the rates tend to be higher than other types of loans even at traditional lenders, much less at payday lenders. Want some guaranteed loans advice? If your credit card rate has a lower rate than what you can get on a personal loan, use the credit card. HOWEVER, you must pay the card off before the introductory rate expires. If there is no introductory rate, you must pay the card off within two years. That means paying much more than you would if you were paying the minimum rate alone. Figure out what your monthly payment would have been for the personal loan, and pay that amount or more each month to pay off the debt.
If this is helpful, you may be able to find more helpful articles in the Loan Info Center.
Personal Loans.
If this is helpful, you may be able to find more helpful articles in the Loan Info Center.
Personal Loans.
Monday, April 24, 2006
How to identify a legitimate personal loan
Personal loan question:
I did receive a question today from someone, who was wondering how to seperate a legitimate personal loan from a scam. Here are some tips that can help:
Personal loans.
I did receive a question today from someone, who was wondering how to seperate a legitimate personal loan from a scam. Here are some tips that can help:
- Don't believe the promises that are too good to be true, like "you'll get a personal loan, guaranteed, even if you have no credit or bad credit".
- It is against the law for telemarketers to ask for payment in advance, while claiming to guarantee a personal loan, or implying that there is a strong chance of one.
- While there is no similar law for loan offers on the Internet, no legitimate lenders, online or offline, will guarantee a loan before you have even submitted your application;
- Morgage lenders may ask for payment for a credit report or appraisal, but legitimate lenders won't ask you to pay anything upfront for personal loans.
Personal loans.
Friday, April 21, 2006
Variable Rate Personal Loan.
What is a variable rate Personal Loan?
With a variable rate, the interest is tied to prime rate and can increase and decrease when prime fluctuates. The Variable rate is equal to prime rate + a spread. A one-year term is available with an amortization period of up to 25 years, depending on the amount, purpose, and the applicant's ability to pay. During the term, blended payments of principal and interest remain the same. * Please note, a Variable rate loan may be converted to a fixed rate anytime, without any charge. To provide freedom from the worry of unpredictable events, you may also consider an optional Personal Loan Insurance Plan which includes, Life Insurance, Disability Insurance and Payment Protector Insurance due to involuntary loss of employment.
Personal Loan Center.
With a variable rate, the interest is tied to prime rate and can increase and decrease when prime fluctuates. The Variable rate is equal to prime rate + a spread. A one-year term is available with an amortization period of up to 25 years, depending on the amount, purpose, and the applicant's ability to pay. During the term, blended payments of principal and interest remain the same. * Please note, a Variable rate loan may be converted to a fixed rate anytime, without any charge. To provide freedom from the worry of unpredictable events, you may also consider an optional Personal Loan Insurance Plan which includes, Life Insurance, Disability Insurance and Payment Protector Insurance due to involuntary loss of employment.
Personal Loan Center.
Thursday, April 20, 2006
Fixed Rate Personal Loan
What is a fixed rate personal loan?
With a fixed rate personal loan, the interest rate and term of the personal loan are fixed at the time of application. The minimum term usually is 1 year, whereas the maximum term is five years, in most cases. The maximum amortization period is 20 years (240 months), depending on the amount, purpose and applicant's ability to pay. However, the amortization period and term must be equal for personal loans amortized for 60 months of less. To create freedom from the worry of unpredictable events, one should also consider an optional Personal Loan Insurance Plan which includes, Life Insurance, Disability Insurance and/or Payment Protector Insurance due to involuntary loss of employment.
Personal Loan Center.
With a fixed rate personal loan, the interest rate and term of the personal loan are fixed at the time of application. The minimum term usually is 1 year, whereas the maximum term is five years, in most cases. The maximum amortization period is 20 years (240 months), depending on the amount, purpose and applicant's ability to pay. However, the amortization period and term must be equal for personal loans amortized for 60 months of less. To create freedom from the worry of unpredictable events, one should also consider an optional Personal Loan Insurance Plan which includes, Life Insurance, Disability Insurance and/or Payment Protector Insurance due to involuntary loss of employment.
Personal Loan Center.
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