When you are in a less than ideal financial situation, you might need extra assistance to get yourself back into a good situation. These kinds of instances are when you might want to consider applying for a personal loan. You might be able to get a helping hand from the right lender. However, if you do not have a whole lot of time, you may be wondering if you would be able to get the funding you need quickly with a personal loan.
What is a Personal Loan?
A personal loan is money that you borrow from a bank, credit union, private lender, online lender, etc., that you pay back. Payments are either made in fixed monthly payments (usually between two to five years) or in one single payment. Most personal loans are unsecured, but there are also a handful of them that are not.
Is Funding Quick with Personal Loans?
In most cases, yes. One of the popular aspects of personal loans is that anyone who is currently in a financial pickle can access the funds they need. Borrowers are often able to quickly get back on their way to financial success.
Some of the quickest loans that you can get are payday loans and title loans. However, there are plenty of other kinds of loans that are easy to get within 24 hours or less. Depending on your current financial needs and where you are in terms of your financial situation, there is an accessible loan available for you.
What Kinds of Personal Loans Are There?
When you find yourself in need of some extra funding, there are a variety of different personal loans for you to choose from, depending on what will best suit your needs and your current financial circumstances. Some of these different kinds of personal loans include:
A secured loan is a loan where you put up some form of collateral. Borrowers could use their house, car (or car title), or some other valuable asset they own so that the lender has a way to get their money back. If a borrower struggles to make their monthly payments, and they default, the lender would still have a way to regain their money.
Secured loans are good for a variety of things. But their most common use is for large items like houses, cars, furniture, and more. However, some secured loans can be used for financial emergencies like medical bills or home repairs as well.
An unsecured loan is a loan that does not require you to put up any form of collateral. These loans are often for smaller amounts of money (usually around $500 or less). But many of them (such as payday loans) can be obtained quickly if you need money now. Often times you are not required to have a good credit score in order to qualify for an unsecured loan.
Other Types of Personal Loans
Fixed Rate Loan
Fixed rate loans come with interest rates that are completely fixed for the duration of the loan. This can be good for someone working for salary payment. Borrowers can make the exact same repayments every time. They do not have to worry about the payment amount changing.
Unlike fixed rate loans, variable loans are kinds of loans where the interest rate can fluctuate. The lender can change the prices at their own discretion. Although the prices can some times go up, they can also come down as well.
An overdraft loan is pretty much exactly what the name implies. It is a loan used to ensure you have enough money to cover whatever you need in case of an emergency. One of the most popular aspects of overdraft loans is the fact that you will only have to pay interest on the amount of money that you spend from the loan.
Line of Credit
A line of credit is a kind of loan where you are allowed to withdraw extra cash from your bank account. Like an overdraft loan, you only have to pay interest on the amount you spend, rather than on the amount that you borrow.
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