Personal Loans

What is a personal loan? Typically the term personal loan refers to an unsecured loan or unsecured debt. Essentially this means that the loan is not secured by any valuables such as a home, car, boat, etc. Typically these loans may also be referred to as signature loans or unsecured loans.

Personal loans typically require a good credit score and with current economic times are becoming even more difficult to obtain. This is because the lender does not have any assets to foreclose, or repossess, if the borrower does not agree to the terms of the loan. A secured loan may be the route to go for some that have difficulty obtaining a personal loan.

Why choose a personal loan? A personal loan may be the route to go for you! Typically consumers will choose a personal loan to avoid the lengthy process of a home equity loan or other collateral loans. Personal loans typically do not require a formal closing and may require nothing more than a simple signature to complete. According to a study by prosper.com 49% of consumers will obtain a personal loan for the purpose of debt consolidation. Debt consolidation is a process of combining multiple debts into one monthly payment, typically with a lower interest rate.