Every once in a while, life throws us a curveball – – an unexpected medical expense or loss of work that leaves us short on cash.  When that happens, a personal loan may be needed to help provide us with the funds we need.

A personal loan is money that you borrow, usually from a bank, credit union, or other lender, that you repay in monthly installments.  No collateral is needed for a personal loan, which makes it similar to a credit card – – it’s not tied to any property like your house or car.  You can use a personal loan for any purpose. Some of the most common uses for a personal loan are to refinance existing debt at a lower rate, or to help make a large purchase when you don’t have enough funds.

Find a Loan That Works for You

Getting a personal loan may be a better option than using a credit card because the interest rates are frequently lower.  The interest on a personal loan, known as the annual percentage rate (“APR”), specifies the rate of interest a borrower pays over the course of a year when repaying the loan.  For example, if the APR is 10% on a loan of $1,000, a borrower can expect to pay $100 of interest per year. If you use a personal loan to consolidate your credit cards that have higher APRs, paying less in interest every month can allow you to pay off your debt faster.

Get a Personal Loan Offer Here

The APR and the amount of money available to you through a personal loan are mostly determined by your credit rating.  In general, the better your credit rating, the lower the APR you will be able to receive from a lender if you are approved for a loan.  Even if your credit is not great or established, it may be to your advantage to get a personal loan to help build your credit history by making on-time, monthly payments.

Check Your Credit Score Here