When you need cash, one of your options is a personal loan. A personal loan can be used to pay off more expensive credit card debt, debt consolidation, a vacation, business needs, a wedding, and much more. If you have a good credit score and good credit history, you can most likely qualify for a personal loan.
There are two types of personal loans those that are secured by some form of collateral and others that are unsecured. An unsecured personal loan is often referred to as a signature loan, since the lending institution basically agrees to loan you money based upon your signature on the loan agreement. Since unsecured loans are more risky, they tend to have higher interest rates.
Secured personal loans are backed by an asset used as a form of collateral. A financial institution will loan you more money and at a lower interest rate if there is collateral involved. If you fail to repay the loan, the lender can then take possession of your asset. The lender will sell the asset in an attempt to recoup its losses.
If you have a good relationship with your bank or credit union, begin by approaching them for a personal loan. Your financial institution, which knows you as a customer, will be more likely to approve you for an unsecured personal loan. They may also be more likely to offer you more money and lower rates on a secured personal loan.
Generally, to qualify for a personal loan you will need to have a steady source of income that is verifiable as well as a good credit history. If you do not have a credit score of at least 640, you will find it very difficult to get a personal loan even from your own bank or credit union.
If you do not have the credit history necessary to obtain a personal loan, consider an alternate type of secured loan – a car title loan. If you own a vehicle that is paid off, you may qualify for this type of loan. Most car title loan companies – such as Embassy Loans of Florida – do not need to check an applicant’s credit history.
Car title loans do not require a lot of the paperwork that conventional loans do either making it possible to get your hands on much needed cash pretty quickly. At Embassy Loans, borrowers have access to their money within 24 Hours.
If you have good credit, you may qualify for a personal loan. If not, consider a car title loan in order to access cash.