Finding the Best Personal Loans

Finding the best personal loans out there means you must research not only your loan options, but also your lenders. Every lender has one area in which they specialize. Knowing what that area is will help you narrow your focus, which allows more time to shop rates and terms between your lenders.

Payday Advance Loans

A payday advance loan is a short-term option that helps float you between paydays when you can’t make ends meet. A payday loan company is an obvious choice, but your bank may have another cash advance option to meet your needs. Direct deposit advance, available at some financial institutions, allows you to advance funds from your paycheck as long as you have an established history of direct deposits into your bank account. Both direct deposit advance and payday cash advances carry high rates of interest and are not the best personal loans out there unless you are in an emergency.

Auto Loans

An auto loan is a personal loan secured by the purchased vehicle. Although you can obtain financing at most auto dealerships, they are often not your lender. Instead, dealerships partner with auto finance companies that offer rates and terms to their customers, typically within an hour. You can also find auto loans at your bank or credit union that may have more favorable rates.

Unsecured Loans

An unsecured loan doesn’t require collateral and is among the best personal loans when you need a smaller dollar amount. Because the lender has only your guarantee to repay the loan in lieu of tangible collateral, your interest rate is higher than the rate of secured loans. Financial institutions are your primary source of unsecured loans, but you will also find finance companies in your town and online ready to meet your needs.

Home Equity Loans

A home equity loan is a special breed of personal loan because it uses your home’s equity as collateral, placing a lien on the property until you fully repay the loan balance. Depending on your state’s equity lending guidelines, you may only be able to obtain an equity loan through a bank or mortgage company. Keep in mind that equity options take longer to close than a standard personal loan.

Locating the best personal loans in your area is a matter of knowing what type of loan you need and finding a lender who offers the product.

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