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How Do I Get a Personal Loan?

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  • Written By: Tricia Ellis-Christensen
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  • Last Modified Date: 09 July 2014
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There are lots of ways to get a personal loan. The highest number of choices in where to go typically belong to those with verifiably very good to excellent credit. Fewer choices exist as credit score drops. Yet even with bad credit it is possible, although possibly no advisable, to get small loans.

At the top of the list in how to get a personal loan are banks, credit unions, savings and loans and institutions called peer-to-peer lending. With very good credit, people may be able to apply at their bank, credit union or the like and get a decent offer on a personal loan. This usually takes a few days for approval, but interest rates especially at credit unions can be good. Those who want to get a secured loan with better rates can take a longer route and obtain an equity line of credit, which is removed from equity in a home or other property or they can refinance a home and simultaneously remove some equity.

Another option is joining a peer-to-peer lending group to get a personal loan. This allows borrowers to get small loans at fairly low interest rates. People invest money as lenders or they request a loan and become part of a network of borrowers or lenders. Some people find this type of group a good option for investing. Credit scores required to participate are usually quite high.

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If the loan amount required is small, a person could get a personal loan by obtaining a credit card account with a balance needed to accommodate the amount of a personal loan. Again, people might obtain this through a bank, but they can also look online at credit card offers to find the most advantageous ones. This option won’t be available to everyone unless they have excellent credit. People who need much higher loan amounts might not be able to get what they need with a credit card.

Those who don’t have great credit history might look into the credit card option too. This is still more available to consumers than is getting personal loans from banks or peer-to-peer lending, which might require a fairly high credit rating. Alternately, borrowers can look to other lending companies that will give what is considered a “higher” risk loan that has correspondingly higher interest rates.

For those unable to get credit cards with a high enough amount or to get a personal loan of any other type, another option is the bad credit or payday loan type. These may be available in amounts up to about $1500 US Dollars (USD), but they can charge huge fees to originate the loan and during payback, especially if the loan is repaid in installments. An additional option would be to try to obtain loans from family members or friends, with a clear contract on repayment.

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anon222059
Post 13

I'm looking for a lender to build my project with a small capital estimated at 1,500.00 euro. The lender will share 1 / 3 (one third )of the profits of the project in the form of a permanent and continuing for five years to pay him every month or every six months, according to his desire and also has the right to recover the loan in case of dissatisfaction with the benefits.

Summary of the revenues of the project during the five years

The first year: 2,550.00; Share of the lender: 850.00

Second year: 3,240.00; Share of the lender: 1,080.00

Third year: 3,960.00; Share of the lender: 1,320.00

Fourth year: 4,680.00; Share of the lender: 1,560.00

Fifth year: 5,550.00; Share of the lender: 1,850.00

The conditions: Mutual trust and the lender must keep a copy of the process of transferring money from his account to my account and this to his advantage, of course for use as evidence against me in court in cases of theft, fraud, failure to pay or late payment.

suntan12
Post 7

Crispety- That's really true. I got a home-equity line of credit a few years back to buy property because the property that I wanted to buy was an ineligible for financing due to the high foreclosure rates in the building.

The only way I was able to get financing in order to buy this vacation property was to take out a home-equity line of credit on my current home. The bank offered a variable rate which was .25% above prime or 3.25%.

Interest rates were so low that we decided that this is the best option. For me, this was the best place to get a personal loan.

I have 10 years to pay back the initial loan, and have the option to extend the loan an additional 10 years.

In addition, you can pay off the loan whenever you want, and leave the line open in case you need the money again. I also did not pay closing costs which was great.

Crispety
Post 6

Sunny27- If you want to learn how to get a personal loan from a bank is very easy. For example, if you're looking to obtain a home equity line of credit, he would need to fill out an application with the bank.

In addition you will need proof of income like a W-2 as well as proof of homeowners insurance. The bank will then perform an appraisal to determine the equity that you have any home.

Based on this information as well as the equity that you have in your home the bank will then decide to grant you a home-equity line of credit or home equity loan.

It doesn't matter what you use this money for. It can be to fund a vacation, buy a car, or even buy another property. The bank is only concerned with you paying back the loan.

Sunny27
Post 5

Latte31- Let me answer that for you. Getting a personal loan with bad credit is not easy. The best thing to do is to contact a mortgage broker.

A mortgage broker can tell you about all kinds of products that might be able to help you get a loan.

Understand if you have bad credit your interest rate is going to be significantly higher than the market average.

Depending on your credit rating your interest rate might be double digits. There are also more restrictions these types of loans so you have to be careful.

latte31
Post 4

SauteePan- How to get a personal loan with bad credit is what I want to know?

SauteePan
Post 3

The writer is absolutely right. The best place to get a personal loan in the credit union or bank. Credit unions usually offer the most competitive rates because they are nonprofit organization and put the profits back in to their banking products, in order to provide the best service to its members.

When getting a personal loan, like a home equity line of credit or home equity loan,it is best to shop around. Sites like Bankrate can offer you the average rates nationwide.

To get a personal loan online, you can fill out an application with companies like Lending Tree which promises to submit multiple offers to you in order to get a personal loan now.

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