http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/personal_loans/ http://www.debts.org/11/index/personal_loans/#When:13:13:00Z Personal loans are for people who need to borrow between $1,001 and $25,000 for any purpose, such as to consolidate debts, cover emergency costs or make home improvements. Repayment plans are usually flexible but it is possible to repay your loan over as much as 15 years if necessary. Where can I get a personal loan?Although the borrowing has been made a little tougher since the credit crunch – especially in regard to home loans – there is no shortage of lenders on the market willing to lend you money. More... Banks and credit unions may offer cheapest loans around so don’t overlook your downtown lender when shopping around, however, most people search online for loans. Shopping for a loan online is fast, effective and allows you to compare the best personal loans from the comfort of your computer.Personal loan alternativesIf you need to borrow up to $3,000 do not assume you need a personal loan. If you do not already have an overdraft facility on your checking account, consider applying for one.Alternatively, you could ask your checking account provider to extend your current overdraft. An overdraft is an effective way of obtaining credit because the repayment terms are flexible, ie how much and how often.A credit card may be a better form of borrowing if the APR is lower than the personal loan deal. A credit card offers more flexibility than a personal loan because you are not restricted to a repayment term or a fixed amount, but you will be required to make a minimum monthly contribution.Unsecured loansAn unsecured loan does not require you to offer an asset, ie your home, as guarantee you can repay the loan. Unsecured loans therefore represent a greater risk for the lender, which means you can expect to pay higher interest rates with an unsecured personal loan. A bad credit history may prevent you from obtaining an unsecured loan because you will represent a risk to a lender. In this case your best option is either a secured loan or a bad credit loan. Do note however, that a bad credit loan will contain significantly higher interest rates.Lenders consider the following people risky borrowers: 1) Tenants 2) Self-employed 3) Bad credit borrowersUnsecured loans have lower borrowing limits because they are not secured against a home guaranteeing repayment. If you would like to borrow more than say $20,000 you may need a secured loan, however this will largely depend on your credit score.See below for typical unsecured borrowing limits:Bad/Poor Credit Personal Loans to $1,500 Fair/Good Credit Personal Loans to $15,000Good/Excellent Credit Personal Loans to $25,000 – (Must have a credit score above 640.)Secured loansSecured loans attract lower interest rates because homeowner secure the loan against their property. Homeowners invariably get the cheapest loans as well as access to borrowing limits in excess of $25,000, but it comes at a risk of having to sell your home to repay the loan if you hit financial trouble.If you need to make some big investments in your home for example a secured loan will be the best credit solution.Remember to shop around online for the cheapest secured loans, or see what secured loan deals are on offer at your bank or credit union. The loan you are offered will depend on:a) Loan amount b) Property value c) Credit ratingRepaying a loanIt is important to ask yourself how you wish to repay the loan when comparing lenders. It may suit you to repay the loan over a short term or you may prefer to spread loan repayments across a longer time period. We advise you to repay the loan as quickly as possible by making the largest monthly repayments you can afford.Early payment penaltiesStudy the small print of your loan agreement so you understand the penalties should your repay your loan ahead of schedule. Some lenders tie in compensation if you pay off your loan within 6 months for example.Loan repayments and financial troubleIf you are unable to make your loan repayments on time you should contact your lender immediately. You lender will help if you are able to justify your reasons for not being able to honor your repayments, such as you lose your job or have had an unexpected financial emergency. It is possible that your lender will freeze repayments or extend the term of your loan.In the event you have a backlog or missed payments your lender may force you to sell your home to bring your loan up to date – especially in the case of a secured loan.Make yourself at home in our Forum and find out what everyone else in America thinks about personal loans. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory. Personal Loans 2008-07-24T13:13:00+00:00