Signature Personal Loan

Personal loan rates, how do you know what is a fair offer for you to pay

Personal loans are one of the best types of loans that you can get from a bank. These are useful for general purposes and you can use them as you wish. These loans are generally unsecured in nature; you do not need to use an asset as collateral. If you default on the loan, the lender cannot take over your asset as payment which makes personal loans more difficult to be approved.

The amount of personal loans that are offered can be anywhere between $1,000 and $50,000 and depends on your credit rating. Also, the better your credit score, the lower is the interest rate. Loan repayment periods are in set of months like 12, 24, 36, 48, and 60. Long periods mean lower monthly payment but higher interest rate and vice-versa.
If you are applying for a personal loan, you can approach the bank that you already have an account with. The bank may inquire what you are using the loan for and may have better customized loans for your requirement.

Given the market conditions and bad credit situation these days, banks are more wary about giving personal loans and have made a good credit score as important factor before giving personal loans. But every bank does have its procedure in place while giving out loans. While some giving priority to the credit score, others verify the stability of a person in the job, the income etc.

One of the best ways to get to get personal loans approved quickly is by securing some physical asset or property as collateral. This way the lender gets security that he is able to get back the money in time. This is known as a secured personal loan, which has a higher chance of approval.

Credit unions are also known to offer good deals in personal loans, with better rates and lower fees than banks. If the loan amount is small, the personal loan from credit union can be quite helpful. To be at a better position while applying for a personal loan and getting a fair offer, find out your credit score. You can it for $16 from FICO or one of the three major credit bureaus. You can also get a free copy of your credit report once a year or at annualcreditreport.com Find out if there is any discrepancy in your report and if it is there, bring it to the attention of the credit bureau. An error in the credit report can get your loan application rejected for no fault of yours.

To get a fair loan offer, shop around. You can also go to a comparison shopping site for personal loans and find out which one offers lower rate of interest and the terms and conditions thereof. Read the reviews on various personal loans from different banks in reviews sites, blogs, forum sites to know which has better customer service and a simplified process. Find out about the repayment terms to know if the monthly repayment has fixed or variable loan rate. Get information about the fees that you have to pay in the beginning and the manner in which the loan is disbursed- at one shot or in installments

Signature Personal Loan