Small Low Interest Personal Loans: Everything You Need to Know

Are you looking for a quick cash infusion but unwilling to either leverage your house or gamble with cash advance loans? You are not alone. Low interest personal loans provide an answer to this dilemma. You can get amounts under $10,000 without collateral and with interest rates much far better than those offered by many credit cards. Here’s what you should know:

Who Can Get a Low Interest Personal Loan

Unfortunately, the great deal that low interest unsecured loans offer is not available to anyone who wants one. Because of the great interest rate, these loans are limited only to those with good credit ratings. Therefore, if you have bad credit, it is best to look for secured (collateral-backed) loans that can offer the same low interest rates while giving lenders some additional protections.

Finding a Low Interest Loan

Those with good credit scores need not look far for small low interest loans. Generally both traditional banks and employment-sponsored credit unions offer these loans. A great start is talking to the loan officer at your personal bank. Sometimes, holding a checking or savings account can entitle you to a small bonus (up to.25%) on your interest rate.

However, traditional lenders are only one option when looking for low interest personal loans. Many lenders online can and do offer better deals than traditional banks because they are not as adversely affected by the current economic climate. In addition, using the internet to find small personal loans is a great way to compare rates among lenders to make sure that you are getting the best deal possible.

Uses for Small Low Interest Personal Loans

There are many reasons that taking a small unsecured personal loan can be the right choice for you. Many of them have interest rates at around 6% which is better than most major credit cards. Consider if you can use a small personal loan for any of the following:

Consolidating Debt – put all of your credit card balances into one easy, payment. This will put you on an honest track to being debt-free and will also aid you in budgeting for each month since all of your payments are condensed into one.

Big Purchases – since these are personal loans, they can be used for purchasing anything you may need for your life or home. This can include appliances, furniture or car repairs.

Start an Emergency Fund – if you anticipate upcoming need for money on the spot, creating an emergency fund that is already in place will help you weather the storm without making rash decisions.

Home Improvements – if you need to fix a roof, replace a boiler or want to add a central air conditioning unit, personal loans can help to get those projects done without risking your home in a secured loan.

Make Wise Decisions

At the end of the day it is important to weigh the pros and cons of all alternatives in terms of loan offers, rates, fees and ultimate use. Only you know what you can afford, and as long as it is in your budget, then an unsecured low interest personal loan can be a great tool to help you help yourself.

Get $5,000 With Bad Credit Through a Personal Loan

Having bad credit can take a serious toll on a person both financially and personally. Credit checks seem to accompany everything from job applications to registering with a utility company these days. This is why many people with bad credit fear a time when they may need to take a personal loan to stave off certain disaster. The good news, however, is that there are in fact several lenders online who are willing to help you find a personal loan in amounts up to $5,000 despite a bad credit history.

Why Bad Credit Happens

There are several reasons as to why someone ends up with a poor credit score. In many cases, mistakes were made when you were young or an unexpected emergency, such as a medical issue, plunged you into debt that you could not avoid. It is difficult to get out from under this kind of financial pressure, but it is also a common problem among people today. Whether your bad credit is a result of poor judgment, bad timing or any other factor, there are lenders who understand and will work with you to get the loan you need.

Online Lenders

Over the past several years, online lenders have filled in many gaps for those with bad credit when it comes to finding a personal loan to help them through a financial hard time. Unlike the process of getting money from traditional sources, such as your home bank or local credit union, who are far more likely to say no to your credit application, online lenders specialize in serving those with poor credit in the past but who have hope for the future.

Reasons to Take a Personal Loan

There are many different reasons that an individual may have for taking a personal loan. Sometimes you are looking to consolidate debt as a means to improve your credit score. Other times, there is a medical emergency or car repair issue that needs to be taken care of immediately. Sometimes people simply take personal loans to finance luxury items such as vacations and weddings because the interest rate is lower than that of a credit card.

Regardless of the reason that you have for seeking a personal loan, online lenders will work with you. That is because they will generally not ask questions about intent as long as the loan amount is $5,000 or less.

Two Loan Options

If you decide that looking online for a personal loan is a good option for you, then there are two main choices that you will have in that respect. The first is to get a secured loan. These loans are taken out using collateral, such as a home or car, and are generally offered at lower interest rates. This is because the value of the collateral insures the value of the loan and gives the lender some additional assurance that you will repay the money you owe.

The other option is an unsecured loan. People who do not own property will need to avail themselves to this option. Because unsecured loans lack the guarantee offered by collateral, they will carry higher interest rates.

Getting a Loan with Bad Credit

Regardless of the reasons for your bad credit, the reasons for your loan, or the ultimate loan that you choose to take, it is nice to know that those with bad credit have the option of getting a personal loan online for up to $5,000. You can start your search today and have the money you need with little hassle and little worry.

Are You Shopping Around for a Personal Loan?

Everybody has experienced, at one time or another, the need for a quick infusion of cash. During these recessionary times it may have been difficult to set money aside for emergencies. Rainy day funds may have been depleted. And some folks are reluctant to approach friends or family for the needed cash.

The car may break down. A visit to the doctor may result in an expensive medication needed immediately. A utility bill may have been neglected too long. These are all legitimate reasons to seek out a personal loan lender. However, the ultimate use of the cash is entirely up to the borrower.

What Is a Personal Loan?

You will hear Personal Loans referred to as Cash Advance Loans, Pay Day Loans, or Short-Term Loans. It usually involves a sum of cash ranging from $100 to $1500. The most usually requested and received amount is around $500.

Such a loan usually comes due within 15 to 90 days after the release of the funds. The rates for such a loan can range from $15 to $35 per $100 borrowed, depending on state regulations and your financial circumstances. No, they are not cheap. But, they are quick and easy.

Where Do I Find a Personal Loan Lender?

You may find a company in your area that offers this kind of loan. They easiest way to contract one is by going online. Use your favorite browser an punch it to search for personal loans, payday loans, cash advance loans.

Whatever term you use, you will have access to plenty of online lenders willing to help you out with your cash flow problems. You may also want to check the Better Business Bureau and its directories. There you will find a comprehensive list of lenders along with their ratings based on customer feedback.

Is a Personal Loan Easy to Get?

They require no credit check, nor do they require collateral. If you apply online, the process is pretty simple. You will be asked to offer credentials such as: Bona fide photo ID (driving license, military ID, state ID, etc.). Social security number. Direct deposit bank account information. Proof of residency. Proof of employment.

Many online lenders can check your credentials using online resources. If they cannot, you will be asked to fax, or scan, documentation to the lender. Even with that added inconvenience, you can have your requested funds in your bank account usually within 24 hours.

Personal Loans Can Work for You

Since the market is pretty crowded with lenders who are willing to make short-term personal loans, it would behoove you to shop around. Careful shopping will help you find personal loan lenders with acceptable interest rates, affordable fees, and comfortable repayment terms. The more you shop, they more money you may save.

Before you go shopping for a loan, have a good idea of how much you actually need to sign for. Make a budget if necessary. Do not go after more than you need. Once you do land your personal loan, be sure to stick to your budget. Make sure you meet your obligation in the agreed terms. Do not ask for extensions, if you do you will be dragging yourself into deep debt. Successfully completed, a personal loan can help boost your credit scores.