Overview of Personal Loans
There are many specific types of loans. You may use a mortgage loan to purchase property, an auto loan to buy a car or a student loan to pay for tuition. A personal loan, on the other hand, can be used for just about anything.
If you are considering applying for a personal loan, count on Saint Louis Banking Rates to find you the lowest personal loan interest rates in the area. Here are examples of some types of personal loans to help you in your search:
Secured Versus Unsecured
A secured personal loan means you offer up collateral in order to borrow from a lender. If you default on your payment, you run the risk of losing the property you have secured your loan with. If you want to lower the rate of your personal loan and are certain you can make your payments on time, a secured loan may be best for you.
If you are not comfortable risking your property to obtain a loan, you may want to consider an unsecured personal loan. An unsecured loan places more risk in the lender’s hands, thus the loan rate tends to be higher. This type of loan is great if you want to pay a bit more over time in order to adopt less risk on your behalf.
No Credit Personal Loan
These loans are designed for borrowers who have not yet established a credit history. No credit check is required, though the loan interest rates may be higher than most.
These loans are intended to cover a gap in funds between pay periods, and are generally very short-term and paid back immediately. They can be used to pay for everything from groceries to the mortgage. If you only need a small amount of money to make ends meet for the week, consider a payday loan.
There is a spedific type of payday loan known as a military payday loan. Like a payday loan, these are loans offered by the U.S. military to assist qualified members of the armed forces access cash they need. Special terms of these loans include a low interest rate even if the applicant has bad credit and a repayment schedule chosen by the borrower.
Line of Credit
Like a credit card, an issuing financial institution determines the terms of your loan based on your needs, collateral available, and credit score. Payments are scheduled according to deadlines and if you pay down your loan in a timely manner, you may qualify for a higher credit limit in the future.