20 Nifty Facts about Getting a Personal Bank Loan

You have probably considered at one time or another getting a signature or personal bank loan. Perhaps you are considering it right now but you are not sure what all a personal bank loan entails or how to get one. Here is a list of nifty facts that can help you gain an understanding of what a personal bank loan is and what it takes to get one.

Types of Personal Loans

  • A secured personal loan - These loans require collateral.
  • Unsecured personal loans - These do not.
  • Unsecured bad credit personal loans - These loans tend to have higher interest rates.
  • Guaranteed personal loans -This type of loan will require proof of being able to pay back the amount borrowed.
Other Nifty Facts

  • To get the best possible deal, keep the amount of a purchase financed to a minimum.
  • Paying off finance loans as fast as you can, this will cut down the amount of interest paid.
  • Using a personal bank loan to pay off credit cards debt is a good idea since the interest rate on personal loans is usually much lower than those of credit cards.
  • If you are having problems with out-of-control spending it probably is not a good idea to take out a personal bank loan against your house.
  • If you can wait for the money you would be better off to take out a loan when the economy is weak and rates are low.
  • Be sure to check the rate again before signing the loan documentation, if it has been several days since you first considered the loan the rate may have changed.
  • Make sure your personal bank loan application is neat and easy to read. This will make a better impression on the bank and possibly affect your chances of getting a loan.
  • Be sure to pay fees upfront.
  • Don't sign documents in a hurry. Be sure to read everything carefully.
  • Always keep a copy of every check you write out for your loan. Banks are run by people and all people make mistakes. You do not want to find yourself in a situation where they claim you did not make the payment and find out you have no proof that you did.
  • To assure the best possible interest rate on a personal bank loan you should check your credit report to make sure it is accurate.
  • Always compare lenders, not all banks will offer you the same rates.
  • When applying for a personal bank loan you should be aware of the three C's a bank will look at: Character (what are you like?), Capacity (what can you afford?) and Credit (How well do you pay back?).
  • The Internet can be a good source for finding a personal bank loan.
  • Not all online banks have a good reputation, research out any loan agency before taking out a loan.
  • Only take out the loan if you really need it. Chances are if you have the money sitting around you will spend it and put yourself into further debt, you do not want this loan to become a negative strike against your credit.
So if you are considering applying for a personal bank loan, consider these 20 nifty facts before you do.

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