When we are asked, "What do you want to see Mr. Jones for?" and you say it’s personal, you actually mean, "mind your own business". And personal loans are exactly that: The lender minds his own business: He grants you a loan, no questions asked. Sometimes there is a limited term, some specific interest or condition, but it will give you the freedom of using it for anything at all.

For Example

A new home mortgage is a loan to be used only to buy a new home. The "prize", so to speak, is a 20 or 30 year term to repay the loan and a very low interest. A car loan is good when you are using it to buy a car. The security becomes the car itself and you don’t need to worry about affecting your home, your business, or somebody willing to act as collateral.

They’re Just So Personal…

Personal loans on the other hand are a special kind of their own. The usual terms are between 6 and 36 months and interest rates are also intermediate, between the mortgage rates and credit card rates, which are the highest.

So, APR’s usually fluctuate around 6% to 8%. These conditions make personal loans accessible, but not too much and on the other hand, they have a fairly short payback term.

How Do We Know When…

…to apply for a personal loan and when to go for a different line of credit? Think of it in the following terms: Is there a better option for what you want it? If it is the case of a business you want to develop, then you have special "small business loans" that will get you better conditions based on your business plan, cash flow and market share.

A Car Loan

If it is a car you want, then better go to a car loan broker straight out. He’s got the best conditions as well as insurance and also the possibility to get you a good deal on the purchase itself.

Home Loans

These can be got through the line of mortgage loans and we all know how looooong they are to pay, although the interest is so conveniently low. Then, buying a home is not an option for a personal loan.

So, There’s A Lot To Choose From

Right, there are so many things to use a personal loan for, that the list would exceed the space here. So, to give just a few examples, you can change your furniture, get a whacking holiday, renew your wardrobe and so many other things that just can’t be used as collateral.

And That’s The Point, Precisely.

Many times, say, not considering bad credit, personal loans are granted, based on track records, good credit, good job, good bank reports and other good information that the lender can obtain.

The loan conditions are not so great, but you have the advantage of just signing for it and that’s it, besides the fact that you can use it for something that you just don’t need to declare. No questions asked.

Securities

If a signature is not enough, the lender will ask you for a security, to make sure you will repay. But no one will ever know what you did with the money and no one will ever care. Perhaps you want to pay for something too personal and you don’t want your family to know, or even a surprise for your family.

Get One Tailored For You

Check out on-line options. There will be one just right for you, I’m sure. Do your homework well and you’ll be very happy with your decision.