If you need money, and do not have any collateral, such as a home, you may want to consider a personal loan.
Do you need collateral for a personal loan?
Many lenders do not require any collateral for a personal loan, which can be convenient for those just starting out, getting divorced or who do not wish to pledge collateral for any reason.
-- Credit Tip by FindLocalBanks.com
Federal law requires that all creditors must state the cost of their credit in terms of an Annual Percentage Rate (APR). This rate takes into account how the loan is repaid on a yearly basis, and allows you to accurately compare the cost of credit among lenders. For example: You borrow $1000 for one year and pay a finance charge of $100. If you can keep the entire $1000 for the whole year and then repay $1100 at year’s end, you are paying an APR of 10 percent. But if you repay the $1000 and finance charge (a total of $1100) in twelve equal monthly installments, you don’t really get to use $1000 for the whole year. In fact, you get to use less and less of that $1000 each month. In this case, the $100 finance charge amounts to an APR of 18 percent.
What is the Interest rate on a personal loan?
The interest rate on a personal loan is typically comparable to the interest rate a lending institution would charge on credit cards to its customers.
Is a personal loan like a credit card?
A personal loan works like a credit card in that it is a revolving line of credit -- when you pay down part of the personal loan balance,
you can borrow that money again. A lender may issue the borrower checks to use for borrowing money, and some may even offer debit cards for their customers to use to access funds.
-- Credit Tip by FindLocalBanks.com
Federal law requires that all creditors must state the cost of their credit in terms of an Annual Percentage Rate (APR). This rate takes into account how the loan is repaid on a yearly basis, and allows you to accurately compare the cost of credit among lenders. For example: You borrow $1000 for one year and pay a finance charge of $100. If you can keep the entire $1000 for the whole year and then repay $1100 at year’s end, you are paying an APR of 10 percent. But if you repay the $1000 and finance charge (a total of $1100) in twelve equal monthly installments, you don’t really get to use $1000 for the whole year. In fact, you get to use less and less of that $1000 each month. In this case, the $100 finance charge amounts to an APR of 18 percent.
Where can I get a personal loan?
Many banks and credit unions offer personal loans. Your ability to qualify for a personal loan will depend on your credit and the underwriting
standards of the lending institution. If you do not qualify at your local bank or credit union, you can always apply for a personal loan at a finance company--many have local offices across the country.
Credit.com offers a service that can help you get a personal loan.
Click Personal Loans
