Just as the name implies, personal loan is an unsecured loan used for personal expenses. The proceeds of a personal loan may be used to cover expenses such as paying for your child’s school fees, purchasing a car, a vacation or any other personal expenses Even though other alternatives may be available for personal expenses, an unsecured loan is sometimes preferred due to its fixed rate and term. The other often overlooked benefit is the minimal time required to qualify (sometimes minutes) and get access to the funds. Making this an ideal approach to obtaining quick cash.
Qualifying for Personal Loans There are no set in stone rules and guidelines for unsecured personal loans. These loans are generally made by private lenders who tend to have various requirements. Some may have an underwriting engine that focuses on your income and others might emphasize your credit rating. Thus, in our opinion it’s best to apply through a vendor that recognizes your strengths and automatically matches your application to a lender with suitable guidelines. One such service provider is GetMoney.com. The proceeds of a personal loan The proceeds of such loans are generally delivered right to your account electronically. You may be able to request a check once your loan is approved. Majority of personal loans generally range from $100 to $2,500. The interest rates tend to vary significantly based on a number of factors such as income, credit history, bankruptcy and etc. What can I do with a personal loan? Once you have the cash in hand, you can do with it as you please. The lenders don’t monitor your expenditures. However, it’s unwise to obtain a personal loan for unnecessary expenses. A personal loan should be a tool for covering expenses that cannot wait to bail you out of a jam. The only person who is qualified to decide what is urgent and what is not, is you. Some common uses are paying for:
- Medical expenses
- Auto repair
- Emergency Cash
- A family obligations
What should I consider prior to applying for a personal loan?
- Run the numbers. You have to know how much you need and what you have to make a sound financial decision.
- Review your liabilities and make sure you can financially afford additional obligations.
- What is your best course of action? Is a personal loan the best option for you?
In conclusion, a personal loan is a tool for quick access to cash. The interest rates tend to be higher, but if you don’t have a choice and need access to immediate cash to get back on your feet, a personal loan is something you should consider. Prior to making the ultimate decision, you may want to consider applying for a loan and making decisions based on actual numbers.