Payday Loans

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, and sometimes a person will need a loan sooner than a traditional lender can give it, or they need the loan for a brief period of time, or they don't have the credit history necessary to qualify for the best 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.

The Traditional, Bank-Issued Personal Loan

For most people, a bank will be the first place they turn to when they need a personal loan. However, there's a major liquidity crunch going on, and banks have cut way back on loans of all kinds -- credit card limits, for example, have been slashed for even people with the best credit and payment histories.

Not only are they approving drastically fewer loans, but they're also charging higher interest rates for them. These rates vary by location, with the best rates in New York hovering around 16%. In Los Angeles the lowest is about 18%, but in Cheyenne, Wyoming a borrower could get a loan for as little as 9%.

On the plus side, banks are very often trusted names, and operate under stringent federal regulations. That sense of security is a welcome one when it comes to money.

Cashcall

Cashcall offers people living in New Mexico, California, Idaho and Utah loans with an APR of 139.34%. Their standard loan of $2,600 costs $75. Thirty-six payments of $298.94 later, the loan is paid off.

Clearly, this is going to be the loan of last resort for most people, but if circumstances are dire and there aren't any other options, then it's (arguably) better than nothing.

Check into Cash

Specializing in payday loans and payday advances (more or less the same thing), Check into Cash offers customers small loans (between $100 and $800) against their next paycheck.

On a $100 loan, for example, the fee is $15 - and the whole amount must be repaid (not $85, as you might think). Loans of this type are for people in a real jam, but like the jaw-dropping Cashcall loan, if they prevent something worse from happening then they're ultimately worth it.

Peer-to-Peer Lending

A booming new lending, loaning, and investing vehicle, peer-to-peer loans are made by individuals to other individuals, with no banks involved. Driven by the Internet, peer-to-peer lending is still experiencing growing pains, but the fact that they're growing so quickly suggests a promising future.

They're more of a risk for investors because there's always the chance that a borrower can default. For borrowers, however, they offer some of the lowest interest rates available. Two of the biggest names in peer-to-peer lending are Prosper and Lending Club.

• Prosper.com

Although not available everywhere, Prosper.com is currently advertising personal loan rates of 7.5% for people with credit scores over 640.

Prosper's auction process among lenders can also send your initial rate down if you're a particularly appealing loan prospect. Additionally, Prosper lets you make early loan payments and pay the bill off before it's due.

• Lending Club

Like Prosper, Lending Club brings investors together to offer borrowers personal loans at phenomenal prices.

Currently, Lending Club offers potential borrowers with the best credit scores loans with 7.89% interest rates.

With a less than stellar credit history and a limited amount of resources, paying for the emergency car repair is leaving you a bit shaken. You understand how bad the economy has been and you're nervous about how tough it might get, especially since it is increasingly harder to get a credit line these days. Your only option is to secure a personal loan and hopefully one that does not require a credit check in case your company decides to lay people off.

A no credit check personal loan is a personal loan that doesn't require a full credit check from the borrower to get access to cash. Usually a person needs to have some type of collateral (like a car, a house, or even a paycheck) to get a loan without their credit being an issue. No credit check personal loans are a useful way for low income or those with extremely bad credit to get money when they need it quickly and without a lot of verification.

Many times no credit check personal loans come in the form of a "payday loan." A payday loan is a small, short-term loan intended to cover a borrower's expenses until their next payday. They are also known as cash advances. Borrowers need not worry about a credit check but must be able to verify employment, a minimum monthly earning (it varies from lender to lender), and usually a checking account.

There are also no credit check loans that use the pink slip and ones that use the value of automobiles as collateral. Like any loan, if the borrower defaults on payments, then the borrower can lose his/her car by repossession by the lender.

A No credit check loan is a way for people who are in financial binds to get access to funds quickly. However, the interest rates are generally high and the enticing advertisements and promotions may not fully disclose the terms of these loans. It is very important to read all the fine print thoroughly before committing to a loan of any type.