|Give light and the darkness will disappear of itself. - Erasmus|
|Home How to Apply for a Loan Loan Terminology Loan Calculator|
Personal Loans and Secured Loans
Welcome to our online loan site. If you are a homeowner or a tenant and are looking for a secured or unsecured personal loan, whether you have good or bad credit, we can help.
Choosing the Right Loan
The first thing you need to do is determine how much you want to borrow and for what length of time. Almost all lenders offer loans for up to five years, but if you want a longer repayment period your choice could be more limited. The longest loans tend to be secured ones.
Secured Loans vs. Unsecured Loans (Personal Loans)
Secured loans are loans where you pledge some sort of collateral - some item of value which the lender gets to keep if you don't pay the loan back according to the terms you agreed to when you took out the loan. The item purchased, such as a home or an automobile, can be used as collateral. The lender will hold the deed or title until the loan is paid in full, including interest and all applicable fees.
An unsecured personal loan is where no collateral is required so you do not need to secure the loan with your assets. This type of loan is also called a signature loan or personal loan and can be used for anything that you want to purchase. Before banks offer unsecured loans and hand over cash to borrowers, they first assess your creditworthiness. With a personal loan, you are borrowing money strictly on the strength of your good credit and your ability to repay. Those who have lower credit scores tend to have less success in obtaining an unsecured loan, and if you can get one, you will probably be assessed much higher interest rates, because the lender is taking on more of a risk. Find your credit score.
Types of Loans
These are secured loans in which the collateral is the vehicle you purchase.
This is an unsecured loan which gives you a line of credit. You can borrow money as often as you want (make purchases or take out a cash advance) . The only limit is your credit limit.
These are usually unsecured loans made for a specific purpose. They are granted to you based on your financial integrity and ability to repay.
Personal Line of Credit
This is an unsecured loan that allows you access to money up to a fixed credit limit.
This is a secured loan where the property you buy is used as the collateral. Second Mortgages (come in two types):
Home Equity Loan
This is a secured loan for a fixed amount. The collateral is the equity in your home. (Equity = the current appraised value minus the amount owed on your house .) You will receive the cash in a lump sum when you close on the loan. In some cases, the interest on this type of loan is tax deductible.
Home Equity Credit Line
This is a secured, revolving line of credit. The collateral is the equity in your home. In some cases, the interest on this type of loan or a portion of it may be tax deductible. It differs from a standard home equity loan in that the borrowing may be done over a period of time, thus preventing you from borrowing more than you need. You also pay interest only on the amount you have borrowed.
If you have loans to pay off, you need to have life insurance, at least enough to cover your loans. If your income is not available to make payments, your family could be in dire straits. Plan ahead. For a reasonable amount of money, you can purchase life insurance to take care of your loved ones, should the need arise. Get Life Insurance quickly along with Life Insurance Rates!
Home Improvement Loan
This is a secured loan for a lump sum, fixed amount. The collateral is your home. The money may only be spent on home improvements such as maintenance or repair, additions or alterations . The interest on this loan may be tax deductible.
An honorably discharged veteran or their widow or widower (if they have not remarried) can get a mortgage from the Veteran’s Administration . The loans are made by an approved lender and are guaranteed by the Department of Veterans Affairs. These loans require a minimal or no down payment and offer lower interest rates.