Types of Personal Loan
There are two types of personal loans available to those seeking to borrow money from banks and other financial institutions.
A secured personal loan is a loan that is granted with the borrower putting up some form of collateral. In many cases a person who has borrowed money to buy a new car or to buy a new boat will use that as their collateral.
You can also have someone, a parent or friend who can be a guarantor on your loan application. This means that should you default on your personal loan then they will be liable for the outstanding balance and associated bank fees and charges incurred by the borrower.
You can even have shares that you purchase with your personal loan used as collateral for your loan.
An unsecured personal loan is the other personal loan lending option offered by banks and financial institutions. This type of requires no guarantees and no security on the borrowers part. However, you will have to meet all the usual lending requirements to have your loan application approved.
Many of the banks important customers who have a sound financial history with the bank can receive these types of unsecured loans with a simple nod of the head from the bank manager.
Online Personal Loan
Applying for a personal loan has never been easier with all major banks and other lending institutions providing safe and secure web sites for their clients to submit online personal loan applications via the internet at their own convenience.
Not everybody has time during their busy day to stand around at a customer service counter waiting for a bank officer to serve them.
Lunchtime is the busiest part of the day for the banks with staff on their breaks and your standing their waiting your turn to have someone accept a personal loan application form over the counter, which can be done with the press of a button either at work or when you get home.
The same personal loan terms and conditions apply for an online personal loan as they would if you went into your bank and applied for a loan over the phone.
A key advantage when searching for the cheapest personal loan online is that you can compare personal loan interest rates offered by many different lenders which you won't have access to when applying for a personal loan in person.
Bad Credit Personal Loans
If you have had a bad credit history then you may want to enquire about a bad credit personal loan. These loans are available to those who have made errors in the past with their finances but have taken steps to rectify their poor credit rating.
There is only the one quick fix for people who need a bad credit loan. You can have a family member or friend co-sign your personal loan as a guarantor to help you have your loan approved but if you don't have this help available, then you are going to have to show the lenders that you have
made changes to your spending and savings habits.
You will need to show the lender that you have begun a continual savings program. Having a full time job with a regular salary with consistent savings will help you achieve your aim of gaining a personal loan and this will also help improve your credit rating.
The longer you take to begin your savings, the longer it will take for you to have a bad credit loan application approved.
Debt Consolidation Personal Loans
We all apply for personal loans for a variety of reasons. Some of the lucky ones will apply for a personal loan to buy a new $40,000 car. Some will apply for a $70,000 personal loan to buy a new boat, and then there are some customers who need to get their finances in order.
Mounting bills can be very stressful as you struggle to get on top of your finances. An outstanding credit card bill, a mortgage payment pending, the car needs repairs or you will be catching the bus, the kids school fees are due, a debt consolidation personal loan can be literally a life saver if you need to ease the financial pressure.
Not everybody is financially well off and there are times when we all seem to be swamped by bills, bills and more bills. A debt consolidation loan can give you some respite and make life a lot more enjoyable again.
High Risk Personal Loans
High risk personal loans generally are charged at a far greater rate of interest to the customers who seek them. Banks may take some risk in providing you with your loan funds but you will have to pay for the service that they provide you.
Your financial situation may be such that you need a personal loan and simply can't negotiate the fees involved, due to the fact it is more important that you receive the loan than the fees that you will pay for it.
In any case, it is always best to shop around for the cheapest personal loans available. While one lender may not give you a loan because they consider you to be too high risk, another may be just as keen to accept your business.
Personal loan Finance Broker
Finding the cheapest personal loan may be too hard and time consuming for some people. If you are one of those who wants the cheapest personal loan but don't really want to spend the time and effort searching for it, then you might be interested in hiring a personal loan finance broker to do the work for you.
A personal loan finance broker has many contacts within the banking industry. They are generally affiliated with a host of banks and financial institutions and have access to the cheapest interest rates available.
Your financial situation will determine what bank will approve your loan and the personal loan finance broker will be able to get this loan organised for you without you having to waste your valuable time making phone calls and waiting at customer service counters.