PERSONAL LOANS » Get Cash Today

When it comes to finding the right personal loan, the bottom line for most people is going to be a favorable low interest rate. However, individual circumstances vary: Sometimes a person will need a loan sooner than a traditional lender can provide it, only need the loan for a brief period of time or they don’t have the credit history necessary to qualify for the best personal loan interest rates.

As a result, different lending options have emerged that cater to different circumstances and each will offer different interest rates. Read on to get an idea of how these different personal loan lenders compare.

If an unexpected or emergency expense is making you panic, a small personal loan may be the perfect thing to get you over the cash hump. Personal loans are generally:

• Unsecured, meaning collateral isn’t needed (although secured loans are available)
• Simple to apply for and easy to obtain approval
• Once the process is completed, individuals will have their money very quickly

Every day, we alert visitors to the awesome savings and CD account interest rate deals that banks have to offer, and even dig up the best checking, auto loan and money market account rates every week. However, one area that doesn’t receive a lot of focus is the personal loan.

That’s why we’re shining the spotlight on them today. Personal loans are a great financial tool that can help you accomplish so many things. Lots of people take out small personal loans to build their credit, while others obtain them to cover their expenses when payday isn’t soon enough. If you’re interested in securing a personal loan of your own, be sure you understand both the risks and rewards, as well as where to find affordable loan rates.

Your credit history is often considered a barometer for your financial health. A lender will use your credit score number to determine your risk as a borrower. The lender will then decide the total amount for a personal loan you qualify to obtain. Lenders also take into consideration the length of the loan and the amount of money they will loan out–this may be reflected in the interest rates.

For example, those with low credit scores will only qualify for bad credit personal loans that are smaller, have a higher interest rates and a very concrete payment schedule. Those with a good credit history will be able to get the best rates, the highest loan amounts, and the most flexible repayment schedules available. 

It may be difficult deciding between using a line of credit from a credit card or securing a personal loan of some type to help get through the rough patch when the time comes. Every now and then people need access to money quickly to cover unexpected expenses.  Each option has both advantages and disadvantages associated with them based on what you need to use the money for and how you plan on paying back the debt in general.

What Type of Loan?

New data from peer-to-peer lenders like Lending Club and Prosper Marketplace shows that many borrowers are taking on unsecured personal loans in this arena to avoid the high interest rates they’re facing with other lenders. While peer-to-peer lending is still a relatively new concept, it is gaining ground in popularity due to its low interest rates and simple processes.

What is Peer-to-Peer Lending?

It is true, with a personal loan you can get the financial resources to buy whatever you want or need whether in either good or bad times.

Perhaps you are a consumer who is having problems managing an ever-growing mountain of debt. A personal loan is a fast way of borrowing cash and to set up a debt consolidation program. Or maybe you have been working as a consultant and forgot to put aside a portion of your paychecks to cover your income taxes, this type of loan can provide you with the resources you need to stay on the IRS’ good side.

Uses of Personal Loans

Peer-to-peer lending giant Lending Club has managed to capture 80 percent of its market by issuing more than $10 million in personal loans per month to prime borrowers — all of this after just turning three years old.

In a press release issued by the lender, it noted how much peer lending has grown. It notes that now, both lenders and borrowers feel good about the process as well. Creditworthy borrowers are now able to request loans of up to $25,000 and lenders feel comfortable making investments of this magnitude. The company hopes to continue its growth and extend more loans to deserving borrowers (PR Newswire).

If you live in Arizona and are looking forward to taking out a payday loan, you may want to look elsewhere for financial assistance. Beginning July 1, payday lenders will be forced to follow banking procedure by capping their interest rates at 36 percent annually.

This is considerably lower than the rates many payday lenders charge, which is sometimes as high as 460 percent annually. With the cap in place, most payday lenders say they won’t be able to stay in business. Those that do say they will likely shift their focus to auto title loans — which can legally push rates to 204 percent annually (AZ Central).

A recent study from FindLaw.com, a legal marketing and information site, has found that college graduates are struggling more than ever to obtain personal loans. After over 130 bank failures in 2009, many financial institutions have shied away from handing out personal loans unless they feel comfortable that they will get their money back. The only problem is that many college graduates have not had a chance to prove that they’re capable yet.

No Credit History, No Personal Loan