While some money loans are available for a specific purchase, like a mortgage, an auto loan, or a student loan, a personal loan can be used for just about anything. Unlike a mortgage, where your house is collateral, or an auto loan, in which your car is collateral, a personal loan often has no collateral, making it an unsecured loan. There are many things you can use unsecured personal loans for. You may be asking yourself, “Should I get a personal loan?” Whether you should take out a personal loan comes down to your specific financial situation and your end goals.
What Is a Personal Loan?
Personal loans can help you consolidate other debts or help to pay off bigger expenses. This type of loan gives you the opportunity to finance just about anything. Personal loans are often installment loans; you’ll receive a lump sum of cash and repay a fixed amount each month until your repayment term is over.
A personal loan is a fixed amount of money borrowed from a lender, usually a bank, credit union, or online lender. Typically, these are unsecured, meaning you don’t need to provide collateral (such as a car or house) to secure the loan. Personal loans can be used for different purposes, such as debt consolidation, home improvement, medical expenses, or other personal needs. They are repaid in fixed installments over a specified period, and interest rates can be fixed or variable. Because they are paid in installments, many people will refer to them as direct installment loans.
Types of Personal Loans
There are different types of personal loans for different reasons. The type of loan that works best for you depends on your financial situation.
- Unsecured personal loans
- Secured personal loans
- Fixed-rate loans
- Variable-interest loans
- Debt consolidation loans
- Lines of credit
The most common types of personal loans are secured and unsecured personal loans. Secured personal loans are backed by collateral, and if you’re unable to make your payments, your lender has the rights to claim your asset as payment for the loan you’ve taken. An unsecured loan is not backed by collateral. Lenders ultimately decide whether you qualify for a personal installment loan online based on your financial history, credit score and other factors. However, compared to the eligibility criteria for most banks and other traditional lenders, MaxLend’s loan requirements for their installment loans online are minimal.
When Should I Get a Personal Loan?
Personal loans are useful to help you in a time when you’re in a financial bind and need emergency funding. Remember, you should only borrow what you need and try to pay off debt as quickly as possible. You can use a personal loan for times including, but not limited to, when you’re:
- Struggling with credit card debt, as a debt consolidation tool
- In need of extra money to pay off expenses that cannot wait any longer
- In need of covering a medical procedure that insurance may not cover
- Making important repairs to your home
- Financing an essential purchase
If you are looking at installment loans online, you need not look any further than MaxLend, your reliable unsecured installment loan lenders. Before agreeing to any loan terms, make sure that the loan amount and terms align with your financial needs and ability to repay.
How to Apply for a Personal Loan
Small personal installment loans are useful under the right circumstances. When you’re ready to take out a personal loan, you can apply for cash online with MaxLend. We offer short-term installment loans that you can pay back over time in regular payments. If you’re seeking more information on how you can obtain installment loans online, contact MaxLend at 877-936-4336.
Honesty is the best policy. That’s why we encourage potential borrowers to read MaxLend reviews on Trustpilot or Best Company.