Personal loans are tailored to fit your needs. They help you turn your plans into reality by giving you the money you need, when you need it, with terms that suit your situation. There are two types of personal loans: secured and unsecured.
A secured personal loan may only be taken out if you offer collateral to your lender. You can use your home, car, or a savings account as collateral. An unsecured personal loan does not require any collateral, and therefore it is a higher risk loan from your lender?s perspective. Due to this high risk that they are incurring, interest rates on unsecured personal loans are higher than on secured personal loans.
You should always think very carefully before securing a loan with your highly valuable property like your home, your car, or other real estate. By using these things as collateral, you are telling your lender that if you default on your payments, they are able to repossess your property to cover your unpaid debt.Taking out a secured personal loan may be time consuming, and it involves filling out a lot of paperwork. Since secured loans are secured against your property, your lender will need to assess the value of your property before they can disburse the funds to you. This whole process may take a few days.
Personal loans may be taken out for a variety of reasons. For example, you could use the funds to take a holiday, purchase a new car, or to consolidate your debt. Depending on the value of your assets, you may be able to get more money from a secured personal loan than you think, but it?s best to think carefully about the amount that you borrow so that you don?t end up in an uncontrollable amount of debt.
If you pay off your personal loan before the end of the loan?s term, you may be charged an early redemption penalty. This just depends on your lender and their policies. If you have a poor credit history, if you?ve changed addresses frequently, or if you are self employed, applying for personal loan may be difficult. However, there are lenders that are able to help you find a bad credit personal loan. If you take out one of these loans, the APR will be higher than if you had taken out a regular personal loan due to the increased risk that your lender is taking on by lending to you.
If you'd like help finding either a secured or an unsecured loan, take a moment to fill out our short questionnaire, and one of SimplyFinance's representatives will contact you shortly to introduce you to a personal loan lender that will search to find the best personal loan deal for you.