Personal Loans

Personal loans are offered by lending institutions such as banks and are so called because the lender requires no security for the debt. Depending on the individual personal loans lender some other purposes may also be excluded, for example the purchase of timeshare property. Below is a quick and easy guide to personal loans.

How long does it take to get approved for personal loans with your service?
You can apply for personal loans 24 hours/day. Once you fill out the application, one of our personal loans lenders will be contacting you shortly, and hopefully have you approved within 24 hours.
This site provides you with the facility to apply online for your personal loans. You'll notice that many of the most competitive products in the market place today are available to you through our personal loans application process. This will ultimately save you time as it means you won't need to contact the personal loan companies direct. We also hold details of personal loans designed specifically for applicants with a poor credit history or those who have difficult personal circumstances - whatever your circumstances we can help you to find the right product.

When you apply through us you will either complete a short application form via our secure server, be re-directed to the personal loans lender's website to enable you to follow their own application process or you will be asked to submit your details. Once your application has been submitted to us, the personal loans company will send you an e-mail or letter acknowledging your application. If you completed our application form it will be passed to your chosen personal loan lender in order that they may process it.

Fast Personal Loans Online

Personal loans and lines of credit are usually unsecured loans. Typically, personal loan interest rates are lower than rates for credit cards. Personal loans are commonly used for small to moderate purchases and loan consolidation. When larger purchases are involved, you can get better interest rates by posting collateral. Credit lines are often used for emergencies or in lieu of credit cards.

We have all seen the advertisements for them. I’m talking about personal loans. They claim to offer an easy way out of debt. One company even says personal loans are “your cash solution”. These finance companies make it seem like free money. Personal loans are also called high-risk loans, loan sharking or cash advance loans. Personal loans actually are short-term loans with very high interest and in most states are perfectly legal.

Personal loans appeal to younger consumers, people with limited understanding of finances and those who are deep in debt. According to the FTC, personal loans lenders usually look for people who are high in debt or have a history of using high-risk lenders.

In recent years a number of personal loans lenders have extended their risk selection standards to attract subprime loans. Among the various types of subprime loans, personal loans are now offered by an increasing number of insured depository institutions.

Personal loans are small-dollar, short-term, unsecured loans that borrowers promise to repay out of their next paycheck or regular income payment (such as a social security check). Personal loans are usually priced at a fixed dollar fee, which represents the finance charge to the borrower. Because these loans have such short terms to maturity, the cost of borrowing, expressed as an annual percentage rate (APR), is very high for personal loans.

Borrowers who obtain personal loans generally have cash flow difficulties, and few, if any, lower-cost borrowing alternatives. In addition, some personal loan lenders perform minimal analysis of the borrower's ability to repay either at the loan's inception or upon refinancing; they may merely require a current pay stub or proof of a regular income source and evidence that the customer has a checking account. Other personal loan lenders use scoring models and consult nationwide databases that track bounced checks and persons with outstanding personal loans. However, personal loan lenders typically do not obtain or analyze information regarding the borrower's total level of indebtedness or information from the major national credit bureaus. In addition, lenders generally do not conduct a substantive review of the borrower's credit history. The combination of the borrower's limited financial capacity, the unsecured nature of the credit, and the limited underwriting analysis of the borrower's ability to repay pose substantial credit risk for insured depository institutions.

Federal law authorizes federal and state-chartered insured depository institutions making personal loans to out of state borrowers to "export" favorable interest rates provided under the laws of the state where the bank is located. That is, a state-chartered bank is allowed to charge interest on personal loans to out of state borrowers at rates authorized by the state where the bank is located, regardless of usury limitations imposed by the state laws of the borrower's residence. Nevertheless, institutions face increased reputation risks when they enter into certain arrangements with payday lenders, including arrangements to originate personal loans on terms that could not be offered directly by the payday lender.

Personal loans are a form of specialized lending not typically found in state nonmember institutions, and are most frequently originated by specialized nonbank firms subject to state regulation. Personal loans can be subject to high levels of transaction risk given the large volume of loans, the handling of documents, and the movement of loan funds between the institution and any third party originators. Because personal loans may be underwritten off-site, there also is the risk that agents or employees may misrepresent information about the personal loans or increase credit risk by failing to adhere to established underwriting guidelines.

Personal loans may sound like a good source of quick and easy cash. But the truth is these types of personal loans may push you further into debt. Ask yourself these questions:

• What are the total fees, the payback plan, and the penalties if you don't pay the quick personal loan back on time?
• Why do you need quick cash for emergencies?
• How can you get a loan that is less costly? Can you borrow from friends or relatives?
• Do you need to talk with a financial counselor to solve your money problems?
• How can you save $300 in quick cash in a savings account that would be for emergencies?
• Can you delay paying a non-interest-charging bill such as utility bill and make payment arrangements with them instead?
• If you decide to borrow money from a personal loans lender, make certain to borrow only what you can afford to pay back from your next paycheck.

Here is a typical example of how personal loans works: the borrower requests a loan for a short period of time, usually one to four weeks. They provide the lender with proof of employment and identification. In exchange for the personal loans, they leave a postdated check with the lender that includes the loan fee. The cost might seem low; maybe the borrower paid $115 to borrow $100 for two weeks. While this may not seem like much, if you calculate the loan cost in terms of APR (annual percentage rate) that $15 explodes to 360 percent interest.

If the personal loans borrower continues to have financial problems and cannot payback the loan as promised, the interest keeps building and so does the debt.

The Federal Trade Commission’s recommendation is to avoid personal loans. Here are some safer options for short-term personal loans:

Try a small loan from a credit union.
Ask for a pay advance from your employer.
Consider a loan from family or friends (be sure to have the terms of the loan in writing).
Use a credit card advance.
Request additional time to pay the bill from your creditors.
Becoming aware of your options before you need a short-term loan is important. Remember that spending more than you make is ALWAYS a trap, and personal loans are an expensive solution to a money management problem.

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