| Loan Types | Personal Loans

Personal Loans

Personal loans are a different breed from cash loans, payday loans, and title loans. For one, a personal loan typically has more specific requirements than shorter-term forms of borrowing. Some lenders might require a solid credit rating, for example, in order to qualify for personal installment loans. Additionally, personal loans generally have longer terms than title and payday loans. For instance, a payday loan usually only has a term of a few weeks, whereas installment loans or a personal line of credit might extend for months or even years. Read on to learn what makes a personal loan unique and what form of the loan is right for you.

Features of a Personal Loan

A personal loan is similar to a title, cash advance, or payday loan in that it provides relatively small sums of money. However, personal loans generally tend to offer larger amounts than standard cash loans. Likewise, personal loans often stretch multiple payments over a longer period of time than payday loans. With installment loans, for example, a borrower might make monthly payments for 24 months. A personal line of credit would work much the same way. The qualification criteria for personal loans, also known as signature loans, may also be more involved and require a certain credit standing. By contrast, cash and title loans typically ignore credit history.

Borrowing Options

Personal loans come in a number of variations, but these different types have the same general characteristics and payment structures. One possible option is a credit line, which extends funds to a borrower up to a maximum predetermined amount. For instance, a lender might offer a line of credit of $2,000, which means the consumer may borrow any amount up to that limit, and he/she must repay with interest only the amount borrowed. Personal installment loans function in much the same way but tend to extend the full amount of the funds up front, unlike a credit line. For example, an installment loan, or term loan, might give the borrower $2,000 in cash up front to be paid back in specified monthly installments for a year.

Find a Lender

If you are interested in borrowing a personal loan, you can apply for one for free using the electronic form at the top of the page. The basic information you provide will be submitted to several lenders for preliminary approval and additional details on rates and terms. The form comes with no obligations and costs nothing to complete. Input your information now to see how competitive our lending partners' rates on personal loans are.