When you’re considering a loan, it’s important to understand how the interest rate will impact your monthly payment. Use our free loan calculator to find your monthly payment for a variety of balances, interest rates and term lengths.
About Personal Loans
Personal loan is the broad term that covers an array of needs. Everything for the individual or family falls under this term, from adoption financing to funding a vacation is under this umbrella, all but auto loans and home loans. The needs behind this type of loan are broad, with many who need the assistance applying to various lenders. Comparatively few are successful, but there are some personal loan tips to help get yours approved.
1. Know Your Credit: Personal loans depend a great deal on your credit rating. This is a result of most being unsecured loans. A secured loan requires the signer of the loan to place something of theirs as collateral to the loan. In the event they do not pay it back, their collateral is forfeit. An unsecured loan has little to recommend it to the lender as a good prospect but your credit.
2. Beware: There are plenty of unscrupulous lenders out there, as well as those who are just plain crooks. The payday lenders fall on this end of the integrity spectrum as well. For those with poor credit, being cautious is especially vital. Simply stated, unless they ask for collateral or a cosigner, any lender that offers you money is no one you should deal with. With interest rates of 300% or more, your position could quickly go from difficult to desperate.
3. Know What You Are Signing: Before you settle on a personal loan or pick up a pen to sign, make sure you know that offer from top to bottom, including the fine print. Make sure you understand what would happen if you miss a payment or if more extreme financial set backs occur. Do you know your monthly payment? Is there a fee for paying off the loan early? If you are not 100% about every part of that document, do not sign it.
Learn more about personal loans at Nerdwallet & Bankrate.