Personal Loans and Lines of Credit

Personal Loans

Normally, a personal loan is unsecured meaning there is no collateral. When you obtain a personal loan, you borrow an amount of money for a set period of time and pay interest on the outstanding principal balance. Personal loans are often acquired to make a specific purchase, such as furniture, major appliances, consolidate other high interest loans into one monthly payment (debt consolidation), home improvements, and income taxes. Most personal loans are obtained from a bank, credit union, or savings and loan, and have a fixed term. If you make the regular payment each month, you will eliminate the debt within the term of the loan. Because personal loans are unsecured, you typically need to have good credit, unless the loan is a "payday loan" which is secured by a post-dated check and is normally granted with out any sort of credit check.

Personal Lines of Credit

A personal line of credit is a common alternative to a personal loan. When you apply for a line of credit, the lender establishes a credit limit which is always available to you. They are used just as a credit card would be used and typically used for unexpected expenses. You can pay off the balance each month to avoid interest charges and keep the credit line open for future needs. You may borrow what you need, as you need it, in any amount, as long as your outstanding principal balance does not exceed your credit limit. If you reach your borrowing limit, you can pay down the balance and then borrow more. Personal lines of credit are usually unsecured. Typically, there is no fixed repayment period as long as you make the minimum monthly payments and interest rates are normally lower than credit card rates. If your line of credit is with a financial institution, you likely access it with a check, a debit card, or a withdrawal slip. In most cases, banking institutions will link your line of credit to your checking account (often called an overdraft line of credit). As with personal unsecured loans, credit lines are easier to obtain if you have established credit.

Article submitted by Chris Robbins, founder of Direct Lending Solutions. Visit Direct Lending Solutions for comprehensive articles and frequently asked questions about various lending options, including Personal loans and Lines of Credit for Bad Credit.

---

Military Payday Loans ? When?s The Best Time To Avail Of These?

What are the opportune times to avail of military payday... Read More

Secrets & Benefits of Secured Loans

Borrowing money has become more and more popular in the... Read More

8 Point Checklist: Evaluating Online Vendors

Here are 8 things to consider, when evaluating lenders online:Website... Read More

Refinance Car Loans - Refinancing Your Car Loan Online is Convenient

Refinancing your car loan online is now more convenient. Your... Read More

Why Payday Loans Should Be Avoided

If you are considering getting a payday loan for the... Read More

What is Bad Credit UK?

Bad credit UK is a term that many people don't... Read More

How to Make Sure You Become a Profitable Trader

Regardless of your trading style; day trading, swing trading, or... Read More

SBA Loan: Qualifying and Applying

According to federal government research, small businesses provide about 75%... Read More

Applying for a Loan Online

If you want to apply for a loan online, you... Read More

Can A Pay Day Loan Truly Be Easy?

If you're looking to find an easy payday loan it's... Read More

Loans - Good or Bad Debt?

When borrowing money it is usually because we lack the... Read More

What is a Home Owner Loan?

A UK Home Owner Loan Can Unlock Your Capital To... Read More

All About Secured Loans

A secured loan is a loan agreement in which the... Read More

To Be Mr. and Mrs. Sometimes You Need Wedding Loans

The conception of wedding has changed over the years. Its... Read More

PayDay & Cash Advance Loans Online ? How Do Online Payday Loans Work?

How online payday loans or cash advance loans work? Online... Read More

Cosmetic Surgery Loans ? Discovering How It Feels to Look Your Best

Market research of UK's cosmetic surgery ascertains the fact that... Read More

Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a... Read More

Used Car Loans - 3 Tips For Financing Your Used Vehicle Online

Financing the purchase of a used vehicle can be done... Read More

A $500 Payday Loan Can Help In an Emergency

A $500 payday loan can be a real life saver... Read More

What Is A Payment Protection Plan?

A Payment Protection Plan is an insurance cover you would... Read More

Simple Tips On Getting Your Loan

So, you want to get a loan?Here are some simple... Read More

Bad is the Opposite of Good... Is It? Not with Bad Debt Personal Loans

'Bad' means 'bad' no matter where you go! It is... Read More

A Guide to UK Secured Homeowner Loans

Trying to find good UK secured homeowner loans might seem... Read More

Secured Loans Information

A secured loan is a personal loan which is generally... Read More

Holiday Loans Can Expand The Horizon Of What You See

Why do kids get all the breaks? Winter-weary adults, fed... Read More

Shopping for a Payday Loan

You wouldn't consider buying a new pair of shoes, a... Read More

Benefits of an Unsecured Loan

Listed below are some of the benefits of an unsecured... Read More

Guide to Bridging Loans

Here is a useful guide to bridging loans. This is... Read More

What is a Home Loan?

A Home loan is the generic term for a loan.... Read More

A Heavenly Wedding - Courtesy Wedding Loans

You always dreamt of walking down the aisle in style.... Read More

Secured Loans - UK Overview

Borrowing money has become more and more popular in the... Read More

What is an Unsecured Loan?

An unsecured loan is a personal loan where the lender... Read More

What is the Difference Between an Unsecured Personal Loan and a Secured Personal Loan?

This is a common question that many consumers have. Many... Read More