Personal loans are issued by banks, credit unions and other lending institutions. The interest rate for personal loans is usually a tad higher than for credit cards, but it’s still cheaper than most other types of debt. If you have good credit, you can save more money by getting a low-interest personal loan rather than continuing to use your credit card(s) to finance your purchases. Here are some other advantages:
A personal loan can be structured with a fixed or variable interest rate. If you don’t want the hassle of worrying about paying an adjustable rate or fluctuating interest rate, then you’ll want to opt for a fixed rate.
Qualification for the loan:
- Must be at least 18 years old.
- Must have steady income that you can prove with pay stubs, etc.
- Must be a U.S citizen or meet the legal requirements to get a loan in your state, usually this means being a green card holder or citizen, but there are some states that do allow non-citizens to get a personal loan. If you’re not a citizen and want this kind of loan, you’ll want to double check with your state’s laws regarding non-citizens and personal loans before applying for one and bearing the higher interest costs associated with it.
- Can’t have been in bankruptcy within the past two years or can’t currently be going through bankruptcy and many such terms.
Some tips before you apply for a loan are:
- Apply online, this is the fastest way to get approved and start borrowing money.
- Make sure you read all the terms and conditions of the loan agreement before signing it as well as any other documents that indicate that you have accepted them. You are not obligated to sign any documentation that you do not agree with, so don’t be pressured into it (in fact, never sign anything that isn’t a true reflection of your own wishes).
- Ask your Lender for a copy of your credit report for review before you apply for the personal loan.
- It’s important that you know what type of personal loan you might qualify for.
Personal loans are the fast and convenient way to fund your shopping spree. Just make sure you keep in mind that this type of loan has a higher interest rate than a credit card but doesn’t require collateral, which can cause problems later on if you have to accelerate the monthly payments. So, all in all , a personal loan can really help to access money when you need it and get yourself out of debt quickly.