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Personal Loans

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What is a Personal Loan?

A personal loan is money you borrow from a lender for your own private use. The
lending institution can be a bank, investment broker, or private lending
company. You can apply for such a loan in your home town or on the internet.
Personal loans can be used for a variety of needs including a vacation, vehicle
repairs, education, medical expenses, home repairs or remodeling, legal bills,
and debt consolidation.

The average personal loan maximum is $15,000. The amount you are eligible for
will depend on the lending institutions guidelines for such loans, your income,
and your overall credit rating. A personal loan is often confused with a line of
credit. The major difference between the two is that a personal loan is a lump
sum amount of money issued to you by the lender. A line of credit is similar,
but you have access to funds up to your credit line that you can access all at
once or just what you need, when you need it.

Personal loans can be either secured or unsecured. Secured loans mean you will
offer the lender some type of collateral that they can claim in the event you
don't repay the loan. This can be a vehicle, land, or other asset you own.
Unsecured personal loans mean there is no collateral. The interest rates for
unsecured loans are higher because there is a greater risk of non-payment.

The terms of a personal loan are generally one to five years. The terms of your
loan will depend on the lender and the amount of money you borrow. It is
important that you understand the loan terms prior to accepting the funds.
While a longer loan term will result in lower payments, you will end up paying
more for the loan over the life of it due to the amount of interest. Keeping
that in mind, only borrow the amount you need for your specific purpose and pay
it back as quickly as you can. Make sure the set monthly payment is something
within your reach on a regular basis so you are not likely to default on the
loan.

The most common use of a personal loan is to consolidate other debts. This is a
great way to have one monthly payment and reduce your monthly expenses. However,
this scenario only works if you are willing to set a budget and life within the
boundaries of it. Too often, a person who gets a personal loan to consolidate
their debt racks up huge debt again quickly. Then they not only have that debt
to pay again, but now they have a personal loan payment to meet each month as
well. It is wise to enroll in a debt management course if you feel you may be
at risk to continue the cycle of accumulating more debt. These can be taken for
free at many non-profit credit counseling centers around the Nation.

Personal loans are a great way to access the money you need quickly. The
application process is simple. You will generally need to verify employment,
income, and residence. The lender will pull a credit check. You will likely
still qualify for a personal loan if you have bad credit or no established
credit. However, be prepared to pay a higher interest rate and have some type
of collateral to offer.

Uses of Personal Loans

Personal loans can be used for most any purpose you would spend money on, the
choice is yours. The most common use for personal loans is to consolidate debt
that has accumulated, such as credit card debt. Individuals may find themselves
scraping by each month with minimum payments, realizing the debt is going to
take forever to pay off this way, as well as cost a fortune in interest.

To help loosen up some cash flow each month as well as pay off the debt in less
time, personal loans can offer a great solution. Start by determining the amount
of money needed to pay off each credit card and other debt you want to include.
Make sure the interest rate on the personal loan will be less than the average
of your credit cards and other debt. It is also important to look at the
monthly payment and how long it will take you to pay off your debt this way. It
is generally year's less than paying minimum balances on a credit card.

Unexpected medical bills can take a toll on any household. Those who don't have
any type of health insurance because they couldn't afford it may feel the crunch
the most. I call this class of people the working poor, as they work for all
they have, yet barely get by. In addition, they are told they earn too much
money to be eligible for public assistance or medical assistance.

A personal loan can offer you financial relieve regarding medical bills,
especially if they are threatening to take your to court or garnish your wages.
Since personal loans generally have a maximum loan amount of $15,000 this will
only benefit you if the medical bills are under that amount.

Most of us at one time or another have experienced getting behind on a bill or
two. This is the result of many things including changing jobs, layoffs, and
unexpected expenses. Personal loans can provide you with the opportunity to get
caught up on your bills and start living within a budget again.

As a society that is always on the go, having your vehicle break down can
really put a wrench in things. Most families in our society are living paycheck
to paycheck, so there are no funds put aside to cover the cost of such repairs.
A personal loan can help take care of getting your vehicle repaired and back on
the road for you very quickly.

Some individuals choose to use a personal loan to take a trip they have always
wanted or a family vacation. Out of town weddings and family reunions are
important to people, so this type of loan can assist with getting the funds you
need to allow you the opportunity for such travels. There is debate over if this
type of use for a personal loan is justified or indulging. However, I take the
view that life has to have a balance. You have to include some relaxation and
fun in your life for such travel experiences. Children are only young once, so
if a personal loan makes that trip to Disney World possible for all of you to
enjoy, then I say go for it.

Education can be expensive, yet is often necessary. Personal loans are becoming
more common for educational expenses because student loans aren't available for
all types of classes, and courses. Since taking such educational classes can
promote your career, this could be a good investment on your part. Relocating
for personal reasons or professional ones can be expensive. Especially if you
will have to cover all the cost out of pocket. A personal loan can help you
cover deposits, travel arrangements, and rental trucks to make such relocation
possible.

Personal loans are available to offer funds for a variety of sources to
individuals. It is important to completely understand the terms of personal
loans and to use them wisely. However, they serve a much needed purpose for
many of us in society.

Uses of Personal Loans - 2

Personal loans are obtained for a variety of reasons. A personal loan has a
very easy application process and generally has an approval or denial within a
few days. Many individuals find it easier to obtain a personal loan than a home
improvement loan or small business loan. There is less information required to
determine eligibility. Our society has come to apply for personal loans for a
variety of needs. Some are necessary such as medical bills while others are for
leisure, a vacation for example.

The choice to take out a personal loan should be done only after researching
your other options. The most popular reason a person applies for a personal
loan is to consolidate other debt. Often this is done because the amount of the
other debt is consuming a larger portion of their disposable income than they
would like. The interest you will pay on a personal loan is much less than what
you will pay on high interest credit cards by the time you pay them off. If you
take out a personal loan for this reason, it is important to put your credit
cards away. If you start charging on them again you will soon find yourself
with many monthly payments again as well as the personal loan payment.

A personal loan is a great way to purchase an older vehicle that the bank won't
finance. This can be a vehicle over 10 years old that you want for a few
thousand dollars. This can also be for a classic car you want to restore. Most
lending institutions aren't going to give you $7,000 to by that 1969 Chevy
Camaro that isn't even drivable. By accessing a personal loan you can choose to
get such vehicles without any problem.

Education is very important. Sometimes individuals don't qualify for financial
aid, yet can't afford to take the course without it. Using a personal loan to
pay for education classes is a great idea. Especially if the class is going to
help you further your career. We all know tuition and text books are very over
priced.

Medical bills and emergency surgery can leave you will a very heavy cost that
is consuming your monthly income. Even if you have health insurance your
portion can be out of your budget ability. A personal loan can often help you
pay such bills while having a smaller monthly payment than you would have
otherwise.

Some individuals use personal loans to put a down payment on a home because
they don't have the amount needed to cover it. Home improvements are often
needed out of necessity or desire. A personal loan can help home owner's make
these improvements happen. Others use personal loans for moving expenses or
even to pay the rental deposit on an apartment. The cost of deposits for
rentals and utilities can add up to a large amount of money that most of us
don't have.

A personal loan may be the only way for you to pay for the wedding you have
always wanted. Some people find this extravagant, but people do it all the
time. You will need to plan your wedding and come up with some figures so you
will know how much money to borrow. Make sure you will be able to afford the
monthly payments as you don't want to start your marriage off with financial
stressors. Most of us work so hard and we rarely are able to take a long
vacation. Personal loans can help you take that cruise to Alaska or trip to
Italy that you have always wanted. Too often, individuals put off such dreams
because they can't afford them. However, it is important to try to achieve your
dreams. Taking such a vacation can do wonders for your mental health as well.
You can return to work rejuvenated and with wonderful memories of your vacation.

Personal loans are available for many uses. I am sure there are many more that
I haven't mentioned. They are used for bills, necessities, hobbies, vacations,
and even weddings. The key is to be financially responsible and make sure you
can realistically pay back any personal loans you take.

Types of Personal Loans

Personal loans are easy to obtain for most individuals. Even those individuals
with poor credit or who haven't established a credit rating can generally get
one. You will need to verify income, employment, and residence when you apply.
Personal loans are a fast and convenient way to get the money you need for a
variety of needs. The funds can be used for essentials, travel, education, or
to pay other loans. The choice is yours.

There are two types of personal loans, secured and unsecured. It can be hard to
decide which one is best for you. Secured loans come with a lower interest rate
than unsecured loans. However to get that lower interest rate you will have to
offer some type of asset to the lender in the event you are not able to repay
your loan. In many cases, the one you will choose will depend on what you are
eligible for. Unsecured loans are generally available to those who have a good
or outstanding credit rating and a steady income. Secured loans are usually the
only option for those with poor credit, no credit history, and an unsteady work
history.

Secured personal loans are a great way to establish your credit. They payments
are often low, but your interest may be off the charts. To offset, this use it
to your advantage. Only borrow what you need. Too often applicants hear the
dollar amount they are eligible for and run with it.

Know before you apply what amount you are looking for as well as what you plan
to use it for. Then stick to that. Don't let a high pressure lender talk you
into taking more than you really need. If this personal loan is your
opportunity to establish your credit history, then don't blow it. Use it
wisely. Make all your monthly payments on time. If possible pay the loan off
sooner to show you are responsible. Doing so will make the process much easier
the next time you need to apply for a loan. Secured loans can also be a second
chance for those with poor credit to redeem themselves.

It is important that you don't miss any payments with a secured loan. If you
find you can't make a payment for some reason, contact the lender immediately
to work out a solution. This is very important if you have lost your source of
income. Most lenders will try to resolve the issue before reporting the
personal loan as being in default. Since you have secured the loan with some
type of property you own, you are at risk of losing that item if you can't
repay the loan. It is in your best interest to find a solution to stay on track
with the payments of a secured personal loan.

Unsecured personal loans have a higher interest rate, but you will have the
peace of mind that nothing you own is tied to that loan if you default on it.
However, it is still very important for you to take responsibility for the debt
and pay it as outlined in your loan terms. The same rules apply here as with a
secured loan. Only borrow what you need and pay it back early if possible to
keep your credit score high and reduce the amount of interest you will pay on
the loan.

Personal loans are a great resource for those who need money fast for a variety
of reasons. It is important to consider the obligations of both secured and
unsecured personal loans before committing to one. Most lenders are glad to
take the time to explain which one will work best for your needs and why. Make
sure to ask questions if you don't fully understand the process for a personal
loan. Do your best to make your payments on time or ahead of schedule. Your
credit is a serious matter than you should always work hard to maintain.

Things to Consider when Searching for a Personal Loan

Obtaining a personal loan is a great way to pay off other debts, afford a
vacation, pay for a college course, or pay for anything else that has become a
financial issue for you. While personal loans are easy to obtain, there are
many things borrowers need to consider before accepting the terms of a personal
loan. Too often, borrowers are in a hurry for fast money and accept the first
personal loan they are offered. The result is suffering with the consequences
of that poor choice for the term of the loan.

The first order of business is to realize that there are two types of personal
loans, unsecured and secured. Secured loans are available to individuals with
poor credit or no credit. This type of loan requires you to put up collateral
in the event you default on the loan terms. Unsecured loans are offered to
those who have good credit and a solid income. There is no collateral involved,
but the lender will take you to court if you default on the loan terms.

All loans have an Average Percentage Rate, known as APR. Most people think all
APR does is affect your interest rate. However, it also shows the lending fees,
set up costs, and any other hidden fees of the loan. Each fee has to be itemized
and identified by order of the Federal Trade Commission. This is the best method
for determining the true cost of a loan. Therefore, it makes the perfect tool
for comparing personal loan offers to find which one really is offering you the
best deal.

Carefully consider the amount of money you need to borrow. Make sure you can
afford the monthly payment on a regular basis. Most lenders will approve your
loan amount for more than you need to entice you to borrow more. This way, they
will earn more money from you in interest over the life of the loan. It can be
tempting to take what is on the table, but remember that it isn't free cash.
This is money you are responsible to repay. If you have a secured loan you will
need to remember that your assets are tied up in that loan as well.

While it is recommended to repay a personal loan as quickly as possible to save
interest fees and establish good credit, make sure you thoroughly read all the
terms of the loan. Do not accept one that will charge you fees or penalties for
early payoff of the loan.

Your credit rating will follow you for the rest of your life. It can be a
blessing or it can haunt you depending on how you run your affairs. Be prepared
for the unexpected to help you repay your personal loan. There is insurance you
can take out that will cover your monthly payments if you lose your job or
can't work due to an injury. This is worth looking in to.

If you find yourself unable to make a personal loan payment, contact the
lender. They will do all they can to work with you. They want to get the money
back and keep you from getting a bad credit rating. Hiding from creditors or
ignoring letters from them is the wrong thing to do in such a situation. Accept
responsibility and see what can be done.

Personal loans are a great source of funds when you need them. Take the time to
comparison shop, only borrow what you need to, make your payments on time, and
let your creditors know of any situations that arise. Following these tips will
ensure your personal loan transactions go smoothly and that your credit is not
damaged.

If you have questions about personal loans, the internet is a great source of
information. You can also contact a lending institution for brochures or a one
on one discussion. It is in your best interest to have all the facts beforehand.

Personal Loan Officers

Most lending institutions offer personal loans. There are personal loan
officers that will assist you with the process as well as let you know your
options. It is not uncommon for loan officers to be trained in more than one
type of loan. If possible, look for a lender that has personal loan officers
that specifically deal with that type of loan only. That will ensure they have
the latest information available in that area and know exactly what your
options are when a personal loan is in the works.

Being a personal loan office involves being able to work well with the public.
It also requires excellent processing and organization skills. The job won't
always be easy as there will be many loans you have to deny. I am sure telling
that to the applicant is never an easy part of the job. Personal loan offices
have to be well trained in the field of such loans as well as willing to keep
up with the information that emerges in that field.

Excellent communication skills are absolutely required as you will need to find
ways to translate the technical business side of the loan process into simple
common language terms for applicants to comprehend. Since personal loan
officers have access to applicant's personal information, confidentiality is
very important.

Personal loan officers are often in a line of work similar to that of a
salesman. They often talk with those interested in personal loans on the phone
or in personal. They work hard to establish good report early on. They also
encourage the applicant to proceed with the application. Personal loan officers
are often instructed by the lender they work for to tell the applicant the
maximum amount of personal loan they are eligible for rather than just the
amount they requested. This is to encourage the applicant to accept more money,
thus generating more revenue for the lending institution in the form of interest.

Once a loan application has been submitted, the personal loan officer will
review the information. They will also verify employment and other pertinent
information. If there is additional information needed to finish processing the
application, the loan officer will notify the applicant. After all that is in
place, it doesn't take long to access the applicant's credit score and
determine if they are eligible. The personal loan officer will analyze the
credit information and the application to determine the amount of risk
associated with approving the loan. Once this is done, the entire application
and information is passed on to an underwriter. Here the final say on approval
is decided as is the amount that the applicant is eligible to borrow.

Personal loan officers generally work 40 hours per week and have weekends off.
However, more and more lending companies are starting to offer services on
Saturdays to meet the needs of the customers. Overtime many be required of the
job if there is a high volume of applications to process. Often volume will
increase when rates drop. That will depend on the policies of the lender you
work the personal loan officer works for.

Most loan officers are required to have at least a bachelor's degree in an area
of business such as finance or economics. The specific education and work
experience needed will depend on the institution. There are no licensing
requirements to be a personal loan officer. In some companies, individuals who
have worked hard but don't have a formal education will be trained on the job
to be a personal loan officer. The pay for personal loan officers varies by
agency and region. However, it is likely to be at least double the minimum wage
for that area. This field is in high demand, with over 300,000 loan officers in
the Nation.

Personal loan officers have a job that requires organization and communication.
Their job is to assist applicants for personal loans with questions as well as
the lending process. This can also include assistance with completing the loan
application. Most personal loan officers have an educational background in
business that they can use to build a solid foundation as a personal loan
officer on.

Questions to ask Lenders before Committing to a Personal Loan

Personal loans are those that can be used for a variety of uses including
vehicles, home repairs, vacations, education, and many more endless
possibilities. Personal loans can be obtained from banks, financial investors,
and other lending institutions including those found on the internet. It can be
confusing to decide who to conduct business with. There are some questions you
need to ask potential lenders before making any type of commitment on a
personal loan.

First, it is important for you to understand that as a customer or potential
customer, you have the legal right to ask lenders questions. Do not conduct
business with any lender who is willing to answer your questions in detail. Be
wary of lenders who tell you not to worry about the details or who try to rush
you through the process. Both of these should be red flag indicators that
something isn't right. Quality lenders who have nothing to hide are more than
happy to answer any questions you have about personal loans.

Too often, customers are hesitant to ask questions out of fear that the lender
will look down on them or that they will be wasting the lenders time. As a
consumer, you need to prepare yourself with the proper information to make
informed decisions. This is very important in the area of your finances.

If it is not clearly stated, find out the maximum amount the lender offers for
personal loans. This way you can find out if the lender will even be able to
meet your needs based on the amount of money you are looking for. Next, ask
questions about the personal loan terms. This will help you determine if the
payment is going to fit your monthly budget.

Most personal loans are decided within just a few days. Ask the lender what
verifications you will need to provide as well as how soon they can have a
decision after you provide all the necessary documentation. The verifications
will vary but should include ID, income, tax returns, and a completed loan
application.

Many personal loan lenders will push the loan rate at you, especially if they
are offering one that is lower than the competition. However, you should ask
them to show you exactly how much the loan is going to cost you. Lenders can
give you an itemization of all fees of the loan. You will want the information
to compare with other lenders information.

Don't forget to ask the lender about prepayment. If possible, you will want to
pay your loan off early to save on interest you pay over the life of the loan.
Some lenders will charge you a payment for prepayment. If you plan to pay the
loan off sooner than it matures, then do not work with a lender who requires
prepayment penalties as part of the personal loan offer.

With security issues being so huge in our society, inquire how the lender will
be using and securing your personal information. You want their guarantee that
your name and personal information won't be sold to other solicitors. If they
do, expect to start getting telemarketing calls and lots of pre-approval offers
in the mail. Most lenders will use encryption and a firewall for their computer
storage of your personal information, but ask about it anyway. It is also a
good idea to ask them how they inform customers if they feel security has been
breached. Good lenders have such plans in place for your protection.

Taking the opportunity to ask questions from potential lenders before making a
commitment to a personal loan takes time and effort. However, you will be glad
you did. It is important that consumers arm themselves with the best possible
information as this is the only way to make important decisions based on having
the proper knowledge. I can't tell you how many people have learned the hard way
that asking questions makes a world of difference when it comes to financial
issues.

Personal Loans vs. Home Equity Loans

Personal loans are a great way to get money quickly for most anything you need
it for, even a well deserved vacation. These loans are generally easy to obtain
and require a minimum of verification including residence, income, and
employment. However, personal loans also come with a higher interest rate than
most other loans out there. In many causes you will be required to put up some
asset you have collateral on your loan.

An alternative to applying for a personal loan is to apply for a home equity
loan. This type of loan is only available to those who are buying or have paid
off their home. You are borrowing money against the equity you have built up in
your home. This loan method will likely allow you to borrow more money than a
personal loan based on the dollar amount of equity you have in your home.
Equity loans are available at a much lower rate than personal loans. The price
for that comes with your home being attached to the loan.

For most people, it really isn't a big deal because they already have a
mortgage to pay each month. Adding on a longer term to repay that loan doesn't
bother them at all. However, if you don't repay the funds, you may end up
losing your home so make sure you take out home equity loans responsibly. In
many cases, the interest portion of a home equity loan can be deducted on your
Federal income tax. This is not possible with personal loans.

In making the choice between a personal loan and a home equity loan, there are
many things you will want to consider. First, decide exactly what the loan is
to be used for and the dollar amount you need. Most personal loans won't exceed
$15,000 so if you need more than that you will have to secure more than one
personal loan or look at the home equity loan option. Next, take a realistic
look at your credit. Personal loans are easier to get with poor credit than
home equity loans are.

As will any loan, take the time to research your options and know what is
available and the total cost of that loan to you. The best way to do is by
taking a look at the Annual Percentage Rate, known as APR. It is required of
lenders to show not only the loan interest rate associated with APR, but all
the fees of the loan. This means everything you will be charged for in the loan
you choose will be listed and itemized for you to review.

This is a great method for comparing different types of loans. For example,
home equity loans generally have lower interest rates so you would assume that
is a better option than a personal loan. However, the additional fees required
to secure that home equity loan may cost you more than the additional interest
you will pay over the life of the personal loan.

Personal loans are a great method of getting the money you need quickly and
efficiently. However, they may not always be the best loan for your particular
situation. It is important that you discuss your loan options with the lender
you intend to use. It is also important that you conduct your own research on
various types of loans you may be eligible for. This will assist you in making
informed decisions while ensuring you get the best loan available.

Personal Loan Insurance

A personal loan is a great opportunity to have the funds to consolidate your
debt, take a college course, repair your car, or even take a vacation. Personal
loans can be secured or unsecured. Secured loans are much riskier because they
involve providing the lender with collateral to ensure repayment of the loan.
If you fail to meet that repayment, the lender will legally own your property,
vehicle, or what ever asset you used to secure the loan.

Personal loans offer plenty of opportunity for individuals to improve their
overall financial situation if the funds are used in conjunction with good
money management skills. However, we all know things take place in life that we
have no control over including death of a income source for our household,
losing employment, or medical issues. These circumstances can all affect our
ability to repay a personal loan. If that loan is secured, then you will lose
your asset tied to it as well. To protect yourself from such horrible
possibilities, consider purchasing personal loan insurance.

Personal loan insurance is the best protection you can have for repayment when
the plan you outlined to cover the loan develops unexpected bumps in the road.
The cost of such insurance varies, and is generally determined by the
outstanding balance of your personal loan. The type of personal loan insurance
coverage you choose will also affect the premium. However, this insurance can
offer peace of mind for borrowers, especially those who have a secured personal
loan.

There are three types of personal loan insurance coverage to choose from. The
specific dollar amounts of coverage will depend on the laws in your State and
the dollar amount of your loan. It is important to discuss personal loan
insurance with any lender you are considering pursuing a personal loan with.

Personal loan death insurance will pay up to a certain dollar amount in the
event of the death of one of the individuals on the loan. In the event that the
personal loan only had one person's name on it, then the loan balance will be
paid in full up to the maximum dollar amount. Most personal loans only have a
maximum loan amount of $15,000 however it is not uncommon for individuals to
take out more than one personal loan.

Disability Plus personal loan coverage is the coverage most often purchased for
personal loan protection. It will pay your monthly personal loan payments up to
a certain dollar amount. In addition you will receive a cash payment of a
percentage of your loan amount each month to help you with the cost of living
expenses.

Involuntary Unemployment Coverage Insurance for personal loans is very popular.
This type of insurance will pay up to a certain dollar amount per month in
personal loan payments for up to a set amount of months.

Personal loans are a great financial tool when used properly. Personal loan
insurance is a very responsible invest to help ensure your payments will be
made regardless of medical issues, unemployment, or in the event of death. The
insurance is especially important for individuals with a secured personal loan.
Not only with their credit be negatively impacted, but they will lose valuable
assets that are tied to their personal loan.

Personal loan insurance is very affordable and can often be purchased through
the lender. It is important that you educate yourself in the area of personal
loan insurance and inquire about it at the time of looking into such personal
loans. Most lenders are more than happy to discuss this option with you as it
further assures them they will receive the funds you borrow.

Personal Loan Collection Officer

Personal loans are a great way to obtain the funds you need to pay for many
different financial endeavors including vehicles, home repairs, vacation, and
education. It is important to pay back such personal loans as outlined in the
terms of your loan. If you fail to do so, you will likely be hearing from a
personal loan collection officer.

The job of a personal loan collection officer is not an easy one. They are
human, so they will feel bad for the position many borrowers are in. However,
it is their job to work hard to ensure the lending institution is repaid the
money that was borrowed. It is in a borrower's best interest to work with a
personal loan collection officer from the very beginning. They are willing to
help you find a solution that will work for both parties. However, if you
refuse to answer their questions or return calls to discuss the reason for
non-payment, they can't help you.

If the personal loan officer and the borrower can work out the issues with the
payments, then both will go their separate ways. This may include the borrower
catching up on the payments or the loan being re-written with lower payment
amounts. Some lending institutions will waive late fees if the borrow agrees to
discuss their finances with a financial counselor. This is to help prevent the
situation from appearing again down the road. Generally, the financial
counseling involves taking a look at your budget and finding ways to reduce
spending. These are classes held at no charge through the lending institution.

In situations where the personal loan office can't negotiate acceptable terms
with the borrower collateral on the account will be seized. There will only be
collateral associated with the loan if the loan is secured. After the
collateral is seized, it will be sold to repay towards the loan. If there is
still an outstanding balance, then the personal loan office may move forward
with turning the account over to a collection agency or take the borrower to
court.

In the event there is no collateral on the loan because it is an unsecured
personal loan, the personal loan officer will follow the same procedures above.
The account will either be turned over to collections or taken to a court of
law. If the borrower had a co-signer on the account, they will be contacted
prior to the account being processed further. If the co-signer does not accept
the responsibility for the loan then they too will be turned over to
collections or taken to court.

Defaulting on a personal loan is a serious issue. It can have grave affects on
your credit, affecting your ability to obtain loans in the future. A personal
loan collection officer will try to work with those who loans are in default to
come up with a logical solution. If one can not be found, further action will
have to be taken. To prevent this from happening to you only borrow money when
you have to. Budget your personal loan payment each month and stick to it. If
you can't make a payment, contact the lender immediately. They are more likely
to work with you if they are kept aware of the situation as it unfolds.

Online Personal Loans

Personal loans can be used to assist you will most any kind of debt you desire
to use the funding for. This can be a great way to get your debt under control
with a monthly payment that fits your budget better. There are many places to
apply for personal loans including banks, investment companies, and loan
companies. With the popularity of the internet these days, it is not surprising
that you can easily secure a personal loan online. The application process is
easy and you will generally have a response in a few minutes or a few days
depending on the lender.

Online personal loan applications are very simple to complete. You will need to
provide your personal information including name, address, phone number, and
social security number. Most applications will ask you the loan amount you are
looking for. There is a section to complete about your employment history and
your income. Since you really can't sign your online personal loan application,
most will have a terms and conditions section that you will need to agree to.

It is very important that you take the time to read this section. Do not agree
to it if you don't agree or you don't understand any part of it. You would be
amazed at how many people simply click the "I Agree" button and go about their
day. However, there is important information in this section that you need to
be aware of. One of the most important portions of this area includes your
rights regarding the loan and the lending process. Make sure to complete all
sections of the application completely, accurately, and honestly.

With so many online lenders to choose from, it can be difficult to know which
one to go with. Make sure you know what you are looking for in a personal loan
and the amount of money you want to borrow. To start, consider using the
internet to compare various types of personal loans. Often you can get a great
comparison on many online lenders of personal loans. You can also get
information regarding their lowest interest rate, find out if they offer
secured or unsecured loans, and find out the maximum loan amount. Knowing this
information will help you find a few that meet all of your personal loan needs.

You may be really to jump right in and start filling out personal loan
applications. Let me caution you about doing that. It is not a good idea to
submit an application to more than one personal loan lender at a time. This is
because each one will pull a credit report on you. The more your credit report
is accessed the worse your credit looks. This can also be a red flag to lenders
that you may borrow more money than you are able to repay. Another reason you
aren't ready to submit any personal loan applications yet is because you need
to research the company you are thinking of applying with.

In this day and age, anyone can make a website appear to be legitimate. Don't
put your trust in a lender because their website says they are the best in the
industry. Start by checking their name with the Better Business Bureau. This
will give you information on any complaints other customers have filed against
that lender. If you see a pattern of issues, avoid applying for a personal loan
with that lender. Next check the internet for reviews from other customers. You
will likely find them to be both positive and negative, but read them both to
get a good idea of who you are dealing with. If you don't find any information
for an online personal loan business, steer clear of them. They may be running
a scam on unsuspecting individuals like yourself. Once you have found a company
to be legitimate and offering good service, you are not ready to complete their
online application for a personal loan.

Applying for an online personal loan is quick and easy. However, taking the
time to complete the process properly is going to require an investment of your
time. This is well worth it to ensure you are dealing with a reputable company
for your personal loan needs.

Educate yourself about Personal Loans on the Internet

The internet is a wonderful place to find information. You can educate yourself
about personal loans on the internet. There are many great sites that explain
the types of loans to you. Here you will find definitions for terms pertaining
to personal loans. You will also find sites that offer you tips and pointers
for getting the best possible personal loan. If you are interested in comparing
personal loan rates, the information is at your fingertips.

You can use the information on the internet about personal loans to educate
yourself about the dangers of scams in the area of personal loans. This is
valuable information that all of us can learn from. You can access the Better
Business Bureau online to help you investigate a lender about possible issues
prior to pursuing a personal loan with them.

Many websites offer you valuable tools for personal loans. The information is
very comprehensive and the site is well designed. There are two sections on the
site that allow you some great comparison shopping for personal loans. One
section is for secured loans and the other is for unsecured loans.

There are consolidation tools that allow you to enter the amount of money you
own on various loans as well as the interest rate. The tool gives you the total
amount you will pay overall to repay that debt. This will give you a number to
use when deciding if a personal loan to consolidate your debt with be cost
effective.

Another great tool found on the internet will help you find the lenders who
offer personal loans that meet your profile. This means you will be able to
apply for a loan with a lender that is more likely to approve your loan than
just randomly choosing a lender. To use this tool, answer questions with the
drop down option that best matches your criteria. The questions will be about
your credit rating, employment, the loan amount you are looking for, the length
of repayment you are interested in, the purpose of the loan, and what types of
collateral you have available.

Informing yourself about personal loans before you apply for one will help
ensure you are approved for the loan you need at the best possible rates. Using
the tools available online helps you make an informed decision about such loans
as well as prevent you from falling victim to the scams out there. The online
tools will help you find out if you can benefit from a personal loan for debt
consolidation as well as help you locate the lenders that are likely to offer a
personal loan that fits your personal profile.

You can find the information on personal loans as well as the wonderful
calculation tools for free on many websites. Don't waste your money paying for
such services when you can find it for free. If you have questions about any of
the information you find on the internet regarding personal loans, consult a
financial institution. This is very important to do if you are finding
conflicting information on the internet. In addition to educating yourself on
personal loans, consider looking up information on budgeting and financial
planning to help ensure you will have a healthy financial history and credit
score down the road.




Debt Management for Personal Loans

Personal loans can offer individuals a way to have the funds for an array of
uses. Some are necessary while others are for pure enjoyment. It is important
that you consider the financial obligation that comes with personal loans. Too
often, individuals access money quickly then struggle to repay it. If you don't
have a good budget in place you may find yourself unable to make the payments on
your personal loan.

An area where many individuals get into trouble with personal loans is debt
consolidation. Within a year most people who use personal loans for this find
themselves in even worse financial shape. This is because they have not altered
their spending habits any. The result is they charge their credit cards up to
the limit and now have those payments to make again as well as a personal loan
payment. They may soon find they are drowning in the swimming pool of debt.

Enrolling in a debt management plan may be a great alternative for you to help
you meet your financial obligations. Most debt management plans involve working
with your creditors to reduce interest rates as well as working with the
individual to establish a realistic budget and work to change spending habits.

The first step in the process is to do some research on the debt management
programs available. Find out how long they have been in business and check for
any reports from customers with the Better Business Bureau. Once you have
chosen one, call to discuss your situation with them and schedule an
appointment. You will need to bring statements for all of your bills as well as
verification of your income.

With a debt management counselor you will discuss your monthly obligations.
They will work with your creditors to reduce the interest on your debt. This
will reduce your monthly payments. You will then make one monthly payment to
the debt management agency. They will then disburse the funds to your
creditors. You will continue to get monthly statements from your creditors for
your records.

It is important that you understand you can't use any of your credit cards that
you place into a debt management program. Keeping that in mind, you might want
to choose one with a very small limit that you pay separately. You will avoid
making any additional charges on that credit card unless it is an absolute
emergency. You will want to discuss this with your debt management counselor.

Most creditors are willing to accept the terms of a debt management program
because it shows you are accepting responsibility for your debt. They want to
recoup the money you owe so this is a very realistic way for that to happen.
Most debt management agencies have policies in place about missing payments.
Generally, if you miss two payments in a row they will drop you from the
program. It is important you notify the debt management agency if you are
having difficulties with making a payment.

Obtaining credit is often too easy, yet repaying it can be a struggle you have
for a large portion of your life. If your personal loans and other debt have
spiraled out of control, contact a debt management program to see if they can
help your situation.

Collection Process on Personal Loans

Personal loans are available for a variety of uses. Most individuals who obtain
them have every intention of repaying them as outlined in the terms of the loan.
However, we all know that life can have plans for us that differ from what we
envision for ourselves. There are also individuals out there who suck the life
from any financial resource available, with absolutely no intention of repaying
the funds.

There are many courses of action lenders can take in an effort to collect
unpaid personal loans. If you find yourself in a situation where you can't
repay your personal loan, it is in your best interest to contact the lender
immediately. They are more willing to work with you than to turn you into
collections. Being honest about your situation will help them explore all the
available options with you. In some cases, you can revise the loan to have
lower payments or even skip a few payments without it causing a negative impact
on your credit report.

The collection process for each lender is different. It is an area you should
familiarize yourself with prior to accepting the terms of the loan. If you
obtained a personal loan using the assistance of collateral attached to the
personal loan or a co-signer than you in a dire situation that requires your
attention to remedy it as quickly as possible.

Most creditors don't care who repays the loan, as long as the funds get paid.
Therefore, they have every intention of holding a co-signer liable for the
balance due on the loan when the borrower is in default. The creditor may still
desire to pursue legal action against the borrower. This can be done by taking
the borrower to
court. However, due to the time and cost involved they will likely just choose
to pursue the co-signer for the funds. If a co-signer refuses to pay, then the
creditor is likely to take both the borrower and co-signer to court or send the
account to a collection agency.

Neither option works well for the borrower or co-signer. Court costs are
expensive and you may need to pay for legal representation. The court can
mandate you pay a set amount of money each month, or face the consequences of
the legal system. Collection agencies generally will continually hound both the
borrower and co-signer with phone calls and letters. They can also choose to
garnish your paycheck, greatly reducing the amount of take home income you have.

Secured personal loans that go into default mean the creditor will be taking
the asset you tied into the loan. This can be property, a vehicle, or other
type of asset. Keep in mind that just because they have that asset, your loan
may not be settled. Often, they will sell the asset for whatever amount they
can get, and then apply that amount towards the balance due. The remaining
balance will still be your responsibility, thus it could result in court
proceedings or collections.

To prevent your personal loan from spiraling out of control, make sure you only
borrow the amount of money you absolutely need. This will help keep your monthly
payments low. Budget each month for repayment of your personal loan. If you have
extra funds, consider paying in advance or placing the money into a savings
account for emergencies.

Lenders find court proceedings and collections a costly and time consuming part
of doing business. They will also collect on any collateral you put forth to
secure the loan. They don't enjoy it, but will take such action as means of
recovering the money they lend. It is very important that you contact your
lender immediately if you are not able to make a payment. This will allow them
to work with you before the issue gets out of control. If you find a lender
can't help you, consider contacting a consumer counseling agency for further
assistance.

Personal Loans for Bad Credit

Personal loans are easy to obtain. They can be used for a variety of financial
needs. However, the worse your credit is the harder time you will have getting
a personal loan with decent rates. There are two types of personal loans,
secured and unsecured. Unsecured personal loans mean no collateral is needed to
secure the loan. If you have bad credit, you will only be approved for a secured
loan because you are considered high risk. The forms of collateral accepted
include vehicles, property, and other tangible items. The collateral has to
have a value sufficient to cover the balance due on the loan.

There are many reasons people have bad credit. It can be that they have been
reckless with their money and finances. For most people this isn't the case.
Back credit can be the result of a death in the family resulting in loss of
income. Layoffs or getting fired from a job often come without warning. Medical
emergencies also lead to bad credit as can divorce. Regardless of the reason a
person has bad credit; they are still going to need to apply for a personal
loan at one point or another.

There are many lenders out there that understand bad credit can happen to good,
responsible people. Therefore, they may be willing to give you the chance to
prove you will be responsible again and repay the personal loan. You will
likely have a high interest rate associated with your personal loan, and that
can leave a bitter taste in your mouth. Take it in stride and look at the
positive side of things. Getting a personal loan at any interest rate can help
you rebuild your credit. Make sure you pay the payments on time. To save on the
interest you pay, consider sending extra payments whenever you can.

Be cautious when applying for a personal loan online. There are scam artists
out there who prey on those in need of a personal loan, especially if they have
bad credit. Never agree to pay any processing fees or other types of payments.
It is against the law under the Federal Trade Commission for any lender of
personal loan funds to ask for processing fees. Many individuals with bad
credit are sucked into these scams because they need the loan so bad. It is
important to check out the lender with the Better Business Bureau. If you are
suspicious of anything, do not move forward with the loan process.

Don't forget to check with the smaller lending companies. Most large lenders
are very impersonal and base your eligibility on a computer generated decision.
Smaller lending companies are more likely to take the reasons for your bad
credit into consideration along with other factors. If you can establish that
you are responsible and that you have income sufficient to repay the loan, then
this may be the opportunity you have been hoping for.

Personal loans can be a godsend, especially if you have poor credit. Make sure
to take your time before committing to any personal loan offered. Be prepared
to provide collateral and to pay a high interest rate as a penalty for your
poor credit. Try to view the circumstances as an opportunity rather than as a
punishment.

Personal Loan Scams

Personal loans are a great way to generate the revenue you need for a variety
of needs. Such loans can be secured by banks, loan companies, private
investors, and online lenders. It is important that you are aware of personal
loan scams and how to avoid them. This type of scam was ranked #5 in the United
States for the year 2000. On average, each person scammed lost $464. As a
result, the Federal government has been working hard to educate the public
about such scams.

The advanced fee personal loan scam is the most common method of taking your
money and running. Most victims of such a scam never report it to the
authorities because they are embarrassed that they feel for such a ruse.
Victims also feel angry. They obviously needed money or they wouldn't have
applied for a loan in the first place. They now have less money than they did
to begin with. Those who do report the scam are often frustrated because the
perpetrators are very seldom caught and brought to justice. It is very
important that you do report any such instant of advanced fee personal loan
scam. If you don't, you are further enabling the predator to do it to others.

Advanced fee personal loan scams work on those who are desperate for a loan,
over trusting, uneducated, and who have bad credit. More than half of advanced
fee personal loan victims are under the age of 30. The lender tells the
applicant that they guarantee they can work with their situation, but that
there is a loan processing fee involved. This can be a fee hundred dollars or
more. With the technology available now, it is not uncommon for the operators
of these scams to have websites and even 800 numbers for you to call. They will
send you letters that look so official, you won't give them a second thought.

The stories of those victimized by such advanced fee personal loan scams will
break your heart. One woman had been laid off and was about to be evicted. She
found another job and applied for a personal loan to get caught up on the rent.
She paid the lender almost her entire first paycheck for so called processing
fees on this loan they guaranteed she was eligible for. She was understandably
upset when she was evicted as well as found out the lender had taken off with
her hard earned money.

To protect yourself from falling victim to advanced personal fee loan scams, be
careful who you attempt to borrow from. Make sure they are a reputable company.
If they are an online business, check them with the Better Business Bureau.
Make sure you enter there business name exactly as they list it. A well known
practice of this scam is to use a name very similar to an actual reputable
lending institution that applicants may be familiar with the name of.

For those of you with bad credit or no credit, don't believe something that
sounds too good to be true, it likely is as the saying goes. You may have to
pay a higher interest rate if you have bad credit or no credit, but you should
never have to pay any fees up front to apply for a loan or to have it
processed. Some personal loan scams will call the fees you pay the first month
payment or a high risk deposit. Applicants need to be aware that no such things
exist. As a matter of fact, any lender must allow you to have access to the
funds for minimum of seven days before they can collect a first payment. You
can check the legitimacy of any fees charged by a financial institution with
the Federal Trade Commission. If you are facing financial difficulties, look
for advice from a reputable non-profit credit counseling service rather than a
lender.

Personal Loan Research

Taking the time to research the area of personal loans can be exciting for
those interested in finding the best rates and lenders to work with. While this
can be time consuming, it also levels the playing field. It can often give you
the leverage to negotiate the personal loan types you want from a reputable
lender. This is also a great way to prevent yourself from being taken advantage
of by a few scrupulous lenders.

One of the best places to start for your personal loan research is the going
rates of the industry at the time you are looking to secure such a loan. This
will give you a solid comparison when you start looking at the rates individual
lenders are offering. There are several things to take into consideration
regarding the loan rate.

First, make sure you do an updated search in this area if a period of time
lapses between your initial research and when you start looking into a personal
loan as rates change often. Next, make sure you are aware of your credit history
and credit score. You can expect an interest rate very similar to the industry
rate if you have good to excellent credit. However, if your credit has some
damage be prepared for that rate to increase on your particular personal loan.

Personal loans may have fees associated with them. It is important for you to
understand that it is against the regulations of the Federal Trade Commission
for lenders to take any money upfront for a personal loan application or
processing fee. Any such fees must be included in the loan. The Federal Trade
Commission is an excellent resource for you to look at. Here you will find all
the possible personal loan fees that are allowed to be assessed. Make sure you
ask any potential lender for a disclosure of all fees, allowing you to find out
the entire cost of a personal loan. You have the right to report any violations
of these regulations to the Federal Trade Commission in writing, over the
phone, or online.

There are many lenders out there offering personal loans. This includes banks,
investment brokers, and other financial institutions. Over the years, internet
lends have cropped up on every search engine. It is important that you research
the lender you anticipate working with. To start, make sure the lender doesn't
have ongoing issues with customers.

You can check this information at no charge. Simply review online postings from
other consumers as well as checking with the Better Business Bureau. You will
also want to find out how long the business has been established. Further
research can help you find out information pertaining to lenders including
interest rates for personal loans, terms and conditions, maximum loan amounts,
and repayment terms.

Personal loans offer financial relief and aid to many individuals. The funds
can be used for a variety of needs. People often apply for them when they need
money in a hurry. However, it is in your best interest to conduct research on
the personal loan industry before applying for such a loan. There is wonderful
information available regarding the going personal loan interest rate as well
as individual lender information. Taking the time to conduct research of
personal loans can help ensure you get the right loan for your needs at an
awesome interest rate.

Being a Co-signer on a Personal Loan

Being a co-signer on a personal loan for a friend or family member is a very
generous offer as it will likely mean the difference between them being able to
qualify for such a loan and not being eligible. However, the decision of being a
co-signer for a personal loan should not be made lighter. It is the
responsibility of potential co-signers to educate themselves about how this
situation affects them, especially with regard to their responsibility to the
loan should the borrower default.

Most co-signers don't realize that this loan is going to show up on their
credit report. Keep in mind that this might affect your ability to get your own
loan down the road as the personal loan you co-signed on with by used to
calculate your debt to income ratio. It can also affect the interest rate you
get your own loans at. If you feel it is a good idea to co-sign a personal loan
for a friend or family member, do so with the understanding that after a set
amount of making on time payments the borrower will attempt to redo the loan
under their own name only. The more money you co-sign for, the longer you can
expect to be a part of that loan.

Since the loan can both positively and negatively impact the credit rating of
the co-signer it is important to set the loan up so that they co-signer can
access the account information. This will allow you to find out what has been
paid on the loan and what is still owed. Make sure the lender will inform you
of any late payments or non-payment issues with the borrower as soon as they
happen. Too often co-signers aren't aware there was an issue with the loan
until it has already impacted their credit.

While co-signing a loan for a friend or family member can help them, be aware
of how it will affect not only your credit but your relationship as well.
Nothing can sour relationships faster than money issues. It is important for a
co-signer to look at the circumstances that lead to the individual needing one
in the first place. If it comes down to simple money mismanagement, then you
aren't doing them or yourself any favors. However, it is the result of
circumstances they had no control over you may want to consider it.

To minimize your risk as a co-signer, don't make it habit of offering to do so
for friends and family. The word will spread like wildfire with more requests
heading your direction. If you don't feel your own credit and finances can't
hold up if the borrower doesn't repay the loan, then do not co-sign for a
personal loan. It can be difficult to say no, but it is important you are able
to.

You might consider having the borrower provide your with verification that
payments are being made including regular statements or cancelled checks. To
further reduce your risk as a co-signer insist the borrower purchases personal
loan insurance that can cover loan payments for a particular amount of time due
to unemployment, illness, or death.

Co-signing a personal loan for someone is more than giving your signature. You
are putting your financial history and worthiness on the line for that person.
It is important that you carefully review the borrowers need for the money as
well as their spending patterns. If they owe other people money or continually
live beyond their means, walk away with a clear conscious. There are times that
being a co-signer on a personal loan is the right thing to do. Only you can make
that decision. If you decide to go forward with it make sure you can afford the
cost of any missed payments and that the lender is going to keep you informed
on the payment status on the personal loan.

The Federal Trade Commission and Complaints against Personal Loan Practices

The Federal Trade Commission works hard to protect consumers against many types
of fraud, including personal loan practices by dishonest lenders. The Federal
Trade Commission is a government regulated agency developed to help protect
consumers. Since 1914, the FTC has been working hard to be a safety net for
consumers. Congress have given the FTC a great amount of authority to assist
consumers.

There are several distinct divisions of the FTC including Advertising
Practices, Consumer and Business Education, Enforcement, Financial Practices,
Marketing Practices, Planning and Information, Privacy and Identity, Consumer
Protection, and Economics. Each division has rules and regulations in place
that businesses much abide by to ensure equality for consumers. The Financial
Practices Division focuses on the area of personal loans as well as other types
of lending issues.

If you believe you are the victim of unfair personal loan practices by a
lender, it is very important that you report it to your local authorities and
to the FTC immediately. Not reporting such incidents allows the predator to
continue doing so to others just like you. Many people choose not to file a
complaint because they don't want to get involved with a government agency or
because they are embarrassed. Consumers need to know the FTC is an advocacy and
voice for them.

State laws very as to what action will be taken for those lenders who have
participated in unfair personal loan lending practices. However, it is often
difficult to apprehend them and take action, especially if the lender is an
online predator. They move very quickly and know how to manipulate computer
systems so that they can't be effectively tracked down.

To file a complaint with the FTC about improper personal loan lending
practices, you may do so online, over the phone, or in writing. The FTC will
obtain as much information about the situation from you and conduct an
investigation. They will look for patterns with similar reported cases. Often a
perpetrator of personal loan lending victimizing has devised a scheme that is
repeated over and over again in various areas, especially the internet. It is
very quick and easy for such a person to change the name of their company on
their website and continue the cycle.

The FTC investigates thousands of personal loan lending scams each year. The
average victim loses about $450 to the scheme. The FTC is working hard to
educate consumers to help protect themselves from such scams working in the
first place. Make sure you are working with a reputable lender who has
verifiable history with customers. You can check this information online by
looking for consumer reviews and by checking with the Better Business Bureau.

Most personal loan victims are young people under 30 years of age. They often
need the funds quickly and urgently, so they agree to whatever the lender tells
them without giving it a second thought. Consumers need to know that it is
illegal for a potential lender to charge you processing fees or bad credit fees
prior to approving your loan. This is how a lot of victims get roped in. They
are told by the lender that the personal loan is guaranteed, but they first
must pay a processing fee of several hundred dollars.

The FTC works hard to protect consumers in many areas including personal loans.
It can be a tremendous help to you for education about the types of personal
loan scams out there as well as when you need to file a complaint after falling
victim to a personal loan scam.

Secured Personal Loans

Personal loans provide borrowers with the opportunity to access funds for those
areas in their life that need some assistance or where additional funding would
work to their benefit. A secured personal loan is a type of personal loan that
involves the borrower having to provide some type of collateral to the lender
as assurance that they will repay the loan. This is due to the borrower falling
into a high risk category. There are pros and cons to accepting a secured
personal loan that we will explore further.

High risk in regard to loan repayment can mean a variety of things. It can mean
you have an unsteady income, including self employment where the amount of
income you have coming in varies each month. While the lender can see you have
an income source, it is not considered to be a reliable as getting a regular
paycheck. The decision will depend on the regulations of the lender, length of
time you have been self employed, and the loan amount you are requesting.

High risk in terms of a secured personal loan generally imply the borrower has
either poor credit or has not established enough of a credit history for a
decision to be made. Poor credit can be the result of poor money management or
circumstances that took place in your life which you had no control over. Some
individuals think it is very unfair to be penalized for not having an
established credit history. I agree that it can be frustrating, because you
can't really be expected to establish a credit history if no one will give you
credit.

In either situation, use the opportunity of a secured personal loan as a way to
prove yourself worthy of lenders working with in the future. Your credit is an
area that is going to make or break you down the road, so use your opportunities 
wisely. A secured personal loan that is repaid as scheduled or sooner can help 
you on the road to re-establishing your credit worthiness or start your newly 
documented credit history of to an amazing start. Secured personal loans can 
offer opportunities to those individuals who would not be eligible for any other 
types of loans the chance to have the funding they need.

On the flip side, secured personal loans can be risky. It is very crucial that
you understand that risk. Since you will be required to provide collateral for
the loan, any default could result in you losing your home, other property,
vehicle, whatever it was that you used as collateral on the loan. While
entering the contract of a secured personal loan, no one really anticipates the
loss of their collateral. It can be very damaging to an individual when the
lender comes to collect that collateral.

To protect yourself, be realistic with your financial endeavors. You will need
to ask yourself some tough questions and be honest with the answers. If you
have a pattern of not being able to fully commit to financial obligations, then
do not create further financial hardships for yourself or your family by
becoming involved with a secured personal loan.

As yourself exactly how much you need to borrow and for what purpose, then
stick to those terms. It can be tempting to borrow more when you need $5,000
and the lender tells you that he can approve the loan for $10,000. Don't let
your common sense and judgment be clouded by dollar signs.

Secured personal loans can be a great means of generating necessary revenue for
those in need. They offer an opportunity for individuals to establish or
re-establish a good credit rating. However, caution should be taken to protect
against losing the collateral for this type of loan from being lost to the
lender. If you are eligible for an unsecured personal loan, it involves less
risk though you will incur a higher interest rate.

What to do if you are Turned Down for a Personal Loan

Obtaining a personal loan can be very important if you have a financial need
and you have looked into other resources. It can be very upsetting if you are
turned down for the loan. There are several things you can do to prevent that
from happening. Since you never know when you may have to apply for a personal
loan, always keep your eye on your credit report. It can take a very long time
to get any errors corrected, time most of us don't have when we need a personal
loan. Know what your credit rating is. Be realistic about your chances of
getting a personal loan based on your credit.

It is important that you fill out the loan application correctly and
accurately. Provide all required information including residence verification,
income, and employment verification. If you have experienced circumstances
beyond your control that may have blemished your credit report, consider
attaching a letter. Keep the letter short and to the point. Explain the
situation, take responsibility for your credit report, and also document how
you have worked hard to make the situation better. This information can help
the loan officer and underwriter with the loan decision.

Be prepared to offer collateral if the only way you can get a personal loan is
to have it secured. While it is best not to secure personal loans because of
the high risk, it may be your only option if you are in a situation where you
really need the loan. Collateral can be a vehicle, property, or other asset
that is legally yours. If you default on the loan, remember that you will lose
that collateral as well.

You may be able to get a personal loan if you have a co-signer. This is someone
who signs the loan agreement with you. If you default on the loan, that person
is legally responsible for repaying it. Asking someone to co-sign a loan for
you is giving them your word that you will not place them in a financially
difficult situation. If you have a co-signer to get a personal loan, you should
pay that loan before anything else every month. You can seriously damage the
relationship you have with a co-signer if you fail to make your personal loan
payments.

While it is never a good idea to apply for credit in multiple places, you just
might want to approach another lender if one has denied your personal loan
application. Each lender has different formulas they use to determine loan
approval. If your credit is not good, consider approaching a lender that
specializes in personal loans for those with bad credit. It is very important
that you verify they are a legitimate lender and not a scam set up to prey on
those desperate to obtain a personal loan. While you will likely pay a higher
interest rate with this lender, you will at least have the access to the funds
you need. Use this opportunity as a way to start improving your credit score by
making all your payments on time.

It can be a huge let down if your personal loan application is denied. Do all
you can to ensure that your application is approved the first time. Do not lie
on your personal loan application. This can create many other issues for you
that aren't good. Be honest as well as describe any issues that you think the
lender might see as a red flag. Work hard to maintain good credit so that you
won't be denied future loans because of a poor credit history.

Repayment of a personal loan is very important. You will want to make it a top
priority in your budget. Down the road, you will likely need to borrow funds
again. Most lenders will help you if they see a history of responsible
finances. If your personal loan has collateral or a co-signer attached to it,
you have an even greater responsibility to repay the loan on time.

Unsecured Personal Loans

Unsecured Personal Loans are those that do not have any collateral attached to
them. This type of loan is often easy to get, but know in advance you will be
paying a higher interest rate on the loan. This is because there is a great
risk of non-payment due to the no collateral issue. Most unsecured personal
loans are for amounts up to $15,000. You may find some loan companies that
offer a higher amount, but that is a standard loan amount in the industry. If
you know you will need an unsecured personal loan for more than $15,000 you can
try to secure two or more such loans from different companies.

Unsecured personal loans can be used for many things. Sometimes a person takes
out such a loan to improve their credit rating. If this is the case, then it is
very important that you make all payments on time. You will want to pay the loan
off early if possible. Not only will this look great on your credit report, but
you will save yourself money in interest. Other uses for unsecured personal
loans include a vacation, home repairs, remodeling, vehicle repairs, education,
or medical expenses. The possibilities are endless.

One of the biggest uses for an unsecured personal loan is to consolidate other
unsecured debt. This is often credit card debt. The amount of interest you will
pay for the unsecured personal loan is generally going to be less than you will
pay overall if you pay off each of the credit cards you are considering
consolidating. You will only have one payment to make each month. It is very
important that you don't run up more charges on your credit cards after
consolidating them with an unsecured personal loan. If you do, financial
disaster is likely to be just around the corner for you. Make sure you have a
solid budget and financial plan in place.

There are many places to secure a personal loan from. You may do so at the bank
you have established accounts with or even one of your credit card companies.
There are many unsecured personal loan companies on the internet. You can fill
out a form on a website and have a response in just a few minutes regarding the
status of your loan application. This process is fast, secure, and is a great
choice for those who are embarrassed to go to a loan officer and ask for money.

Be careful if you decide to apply for an unsecured personal loan online. There
are many reputable companies out there, but there are just as many scams. They
often prey on individuals looking to borrow money. You can check up on an
online loan company by checking with the Better Business Bureau. You can also
search the internet for reviews by other users of this company.

If you can't find any information about the business anywhere, stay away from
it. There is a good possibility that the business is running a scam and
continually changing its name to avoid being caught. An internet loan company
should never ask you to send them an application fee or processing fee. If you
are asked for one, end all contact with that business.

Unsecured personal loans are a great way to generate money for other needs.
They are generally easy to get regardless of your credit history. Shop around
for a good rate. Remember that the rate is going to be slightly higher than
that of a secured personal loan. As with any type of loan, make sure you use
the funds wisely. Financial security is very important. Just because there is
no collateral attached to the loan doesn't mean you have an easy out for not
repaying it. Doing so will severely cripple your credit rating and credit
score. It will also affect your ability to secure an unsecured personal loan in
the future.

Ways to Generate Funds without taking a Personal Loan

Obtaining a personal loan can be great, but don't forget that monthly payment
that goes with it. If you are uncertain if you can meet the monthly obligation
of a personal loan, don't take the risk. This is especially important if the
only type of personal loan you are eligible for is one that is secured. A
secured personal loan means that you have collateral attached to it. There are
other ways to generate funds without taking out a personal loan. It will depend
on the amount of money you need. If nothing else, you may be able to come up
with a portion of the money, reducing the amount you need to borrow.

One of the easiest is to borrow from a friend or family member. However, only
do so if they are understanding of your situation. If you will have a hard time
repaying such a loan then you don't want the relationship to suffer. Parents are
sometimes willing to extend a loan with terms that are loose depending on the
child's needs and the parent's disposable income.

Consider selling things you already own to generate funds. This can be
vehicles, property, and art work, anything you have of value. You can also
consider having a yard sale to earn some extra money. Every little bit you can
generate will help you to avoid taking out a personal loan. Old books,
especially college books and CD's sell well on the online auction sites such as
Ebay and Yahoo Auctions.

Depending on your schedule, it may be possible for you to obtain some type of
work as another income source. You can do this temporarily until you have saved
up the funds you are needed. This can be working on the weekends or evenings at
a retail or convenience store. You may even try your hand at telemarketing. If
you are going to college consider tutoring or typing papers.

The internet offers many employment opportunities that you can do from your
home. There are sites that allow you to make money by typing papers, conducting
research, proofreading, and even transcribing. You can do as little or as much
work as you are interested in. The pay is very good as well. However, there are
some work from home scams out there. Don't sign up for any such program that
requires you to send them money or purchase a start up kit.

For those of you who interact with many people socially, selling Avon or Mary
Kay products can be a very easy way to generate income. You simply leave books
with interested people and place their order for them. Both can be very
profitable.

For most of us, simply cutting our expenses can generate a considerable amount
on money on a regular basis. Consider switching to store brand soaps and
shampoos rather than name brands. Clip coupons and watch for store sales. Make
a menu and stick to it. Only purchase the items on your grocery list. Carpool
to work to cut down on the expense of gas and vehicle maintenance. Make your
coffee and lunch at home rather than purchasing it. Eat your dinner at home
rather than eating out. If you smoke or chew tobacco, quit. You will be amazed
at the amount of money you are able to save when you no longer purchase such
products.

Applying of credit should be done so wisely. Rather than rushing out to apply
for a personal loan, consider ways you can generate more income to cover the
expense on your own. It won't always be easy, but you will feel better knowing
you accomplished the feat on your own. You will also avoid another monthly
payment that can lead you to financial stress.

Ways to Eliminate Debt with a Personal Loan

There are many ways to allocate the funds you receive under the terms of a
personal loan. One of the most popular uses for such loans is to eliminate
debt. A personal loan offers a great alternative for individuals who are
struggling to make monthly payments on too many accounts. The idea is to pay
off such debt with a personal loan, then only have one monthly payment to make.

The monthly payment is often much less than you were paying before on all your
outstanding debts. Having only one loan payment can also improve your credit
score. This is especially true if the other debt was mainly credit card debt
with the balance being very close to the credit limit.

The first step is to make a list of all of your outstanding debt. Make columns
for information including the creditor, the balance due, and the interest rate.
In the last column calculate the total amount you will pay on that debt making
your current payments. There are great calculators to get this information
online. These calculators are free and easy to use. To do this, simply type in
the balance, interest rate, and monthly payment. In many cases you will be
shocked to see how much that debt is going to end up costing you.

Once you have completed that task, add up the totals in each column. You will
need to know the balance due to pay off the debt as this is the amount you will
need your personal loan to be for. You also want to remember that overall cost
total. It is very important that before you agree to the terms of a personal
loan that you have made sure the overall cost of that loan will be considerably
less than if you continue to make minimum payments on the debt you already have.

If the cost is fairly close or more, than don't take out the personal loan. It
will do more damage to your current situation than good. Find out what the
monthly payment will be as well. Imagine your shock if it ends up being more
than what you are currently paying out.

This is a good time to take a realistic look at the reason why you have debt
that you are having a hard time meeting the monthly payments for. It may be due
to a change in circumstances that you had no control over. However, if the
reason is that you have poor spending habits then you need to address this
issue before taking out a personal loan. Nothing is more upsetting than getting
a personal loan to cover your debt, then realize six months down the road that
you have ran up a large amount of debt again. The situation with be much more
grim now because in addition to paying off that debt you also have a personal
loan payment to cover each month.

Enrolling in a debt management course or budgeting class can help you identify
areas where you are not using your income wisely. There are also many excellent
online resources to assist you. A good exercise is to have every family member
write down all the money they spend over a week's time. You will be amazed to
see the pattern of things that are draining your wallet during this exercise,
including that daily cup of coffee and eating on the run. This is a great way
to get all family members involved in the budgeting process as well as involved
in finding better ways to manage money.

Personal loans can be a great way to eliminate other types of debt if used
correctly. It is your responsibility to do your homework first. Make sure
taking out a personal loan to cover your other debt is going to offer you a
solution, not result in more financial stress.

Books on Personal Loans

Personal loans and all the terminology that goes with it can make your head
spin after awhile. However, it is very important to educate yourself with the
ins and outs of personal loans if you are considering obtaining one for any
financial reason. Doing so can help ensure you get the right loan for your
needs as well as prevent heartbreak down the road for you.

There are many wonderful books on the market today offering information on
personal loans. Several of these books are a great investment for ensuring you
will make solid financial choices in the area of personal loans after arming
yourself with the facts of the industry.

The "Beginners Guide to Real Estate Investing" by Gary W. Eldred is of course
geared towards real estate. However, it does have excellent information
regarding personal loans. If you are considering a personal loan for real
estate related issues including fixing up homes, then this book will give you
quality information in both areas.

"The Book of Inside Information" explains the world of personal loans in very
simple terms, making the process much easier to understand than books full of
industry jargon. This book is a great financial resource. In addition to
providing you will information about personal loans, it discusses the areas of
family finances and managing family spending. One of the newest books out there
is "The 21st Century Family Legal Guide: The Law You Must Know to Protect
Yourself and Your Family". This book is more technical, but still offers
excellent information regarding personal loans.

In addition to quality books offering you information about personal loans,
there are a few that provide you information on how to pay off debt, including
credit cards and personal loans. "Live Debt Free" (3rd Edition) is full of
level headed advice for doing so. This isn't a book that promotes pyramid
schemes or get rich quick schemes. Instead, the book offers forward budgeting
and money management tips to help individuals devise a realistic plan that fits
their income. The plan will help individuals reduce their debt in the areas of
credit cards and personal loans.

Quality magazines including Reader's Digest and Money Today often run articles
on types of loans. You can research the internet to find great articles from
these magazine and many others that discuss personal loans. Don't forget to
look for reviews including those published by the National Consumer Council on
the issue of personal loans.

Personal loans are a great financial tool when used properly. Take the time to
read some quality books in the area of personal loans to establish a strong
understanding of how the process works. To get the best results, choose books
that are unbiased. You want to read the good, the bad, and the ugly about
personal loans. The more you know, the better decisions you can make regarding
your financial dealings with personal loans.

If you already have personal loans, consider reading books that provide
excellent information for ensuring those loans are repaid as well as how to
eliminate personal loan debt with effective debt management systems. The
information is very straightforward and worth investing your time and energy
into reading. The internet is a great place to search out such important books
on the issue of personal loans. You can also ask for them at your local library.





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