10 Best Personal Loans
Anyone who is looking for a personal loan will be happy to know that there are many different types of personal loans available. Here we will look at the 10 best personal loans. Each is slightly different and offers different benefits for different people; however they can be considered among the 10 best personal loans for the options they provide.
Fixed rate loans – Fixed rate loans means that the interest rate remains constant for the life of the loan. This is very common with personal loans and is popular as the fixed rate offers more security for the person who is repaying it.
Variable rate loans – Variable rate loans means that the interest rate varies at intervals along the life of the loan, although the maximum amount is capped. This is riskier for the consumer, even though the interest rate generally starts out lower than the fixed interest rates.
Installment loans – Installment loans simply means that you will need to repay the loan in installments until the end of the loan period. There will be set periods for repayments. These are the most common types of personal loans.
Single payment loans – Single payment loans can also be known as bridge loans or interim loans. These loans are short-term loans for people who require temporary financing and they are repaid in one lump sum.
Secured loans – Secured loans are loans that use collateral – generally property or an asset – to secure the loan. This means that if you fail to meet your repayments, the lender will take your collateral. Because they are secured they generally have lower interest rates.
Unsecured loans – Unsecured loans are loans that do not require collateral. They are more risk for the lender and therefore generally come with higher interest rates.
Convertible loans – Convertible loans are generally used for businesses as they allow you to convert the outstanding principal of a loan into the equity position of the company of the borrower.
Car title loans – Car title loans are a type of secured personal loan that uses your car as the collateral. The lender takes over the lien of the car while you repay the loan and the loan amount is calculated based on the value of the car.
Payday loans – Payday loans are a type of unsecured personal loans that require no collateral and are based on the size of your paycheck. They are short term loans and can also be considered single payment loans. Because they are short term and more risk to the lender they have high interest rates. Do your best to avoid these.
Bank loans – Bank loans are considered to the among the most common types of loans available. They are more complicated loan solutions than many of the alternatives, but they are among the 10 best personal loans because banks are reliable and safe lenders.
Consider all aspects of the loan you require before you choose between the different lenders that offer personal loans. This includes interest rates, repayment schedules, the speed the loan is available and other conditions of the loan.