Ways to get a personal loan
There are lots of ways to get a personal loan. The highest number of choices in which they should address typically belong to those with proven very good to excellent credit rating. Fewer choices exist as credit score drops. But even with bad credit it is possible, but perhaps not advisable, to get smaller loans.
At the top of the list of how to get a personal loan are banks, credit unions, savings and loans and institutions called peer-to-peer loans. With very good credit, people can be able to apply to their bank, credit union or the like and get a decent deal on a personal loan. It usually takes a few days for approval, but interest rates especially in credit unions may be good. Those who want to get a secured loan with better prices can be a longer route and get an equity credit line removed from the equity of a home or other property or they can refinance a home while eliminating some equity.
Join a peer-to-peer loan group to get a personal loan
Another option is to join a peer-to-peer loan group to get a personal loan. This allows borrowers to get smaller loans with relatively low interest rates. People invest money as lenders or they request a loan and become part of a network of borrowers or lenders. Some people find this kind of group a good choice for investing. Credit scores required to participate are usually quite high.
If the loan desired amount is small, a person can get a personal loan by getting a credit card account with a balance needed to accommodate the amount of a personal loan. Again, people can accomplish this through a bank, but they can also look online on credit card offers to find the most advantageous ones. This option will not be available to anyone unless they have excellent credit rating. People who need much larger loan amounts may not be able to get what they need with a credit card.
Those who do not have great credit history can look into the credit card option as well. This is even more accessible to consumers than it is to get personal loans from banks or peer-to-peer loans, which may require a relatively high credit rating. Alternatively, borrowers can look at other lending companies that will give what is considered a “higher” risk loan that has similarly higher interest rates.
For those unable to get credit cards with a high enough amount or to get a personal loan of any other type, another option is bad credit or payday loan type. These may be available in amounts up to about $ 1500 US Dollars (USD), but they may charge large fees to the loan and during repayment period, especially if the loan is repaid in installments. An additional option would be to try to obtain loans from family members or friends, with a clear agreement on repayment.