Do you want to finance an adoption? Do you want to move to another country? Do you want to finance your kid’s college education? If you answered yes to these questions, you can apply for a personal loan and utilize them for your dreams. There are two types of personal loans, unsecured and secured. The former is lent to the borrower only on the basis of their credit score and assets, while the latter is lent to them on the basis of collaeral, which is most often a valuable property, such as a home or car. In this case, depending on your need and on your repayment ability, you should decide whether to take out an unsecured loan or a secured loan.
The key with unsecured personal loans is your credit
The interest rates on the personal loans are usually higher than that of the secured loans as the latter are backed by property. In this case,if the borrower defaults on the payments, the lender can seize the property and in extreme cases foreclose their property in an effort to recuperate the money that they lost. This is not the matter with unsecured loans as they are lent only on the basis of the credit score of the borrower. In addition, someone with a high credit score will definitely get a comparatively low rate than someone who has already had a poor credit score. This is clearly because a good credit score is a sign of good financial management.
What are the requirements for a personal loan?
There are a number of documents that you need when you take out a personal loan.
- Identification documents such as your passport, driving license, Social Security card
- Documents that verify your address such as utility bills or copy of lease
- Proof of income like W-2 forms, bank statements, pay stubs and tax returns
In addition to these documents, you may also be asked for the following:
- Work address, name of employer and phone number
- Monthly debt obligations including student loans/rent
- Gross monthly income
- E-mail, address and phone number
- Date of Birth
- Maiden name of your mother
In addition, after providing the lender with all the above mentioned information, you have to specify on the amount of money which you want to borrow and the time within which you plan to repay it. It’s important to keep in mind that the longer time you take to repay your loan, the more time you will take to shell off interest payments. If you borrow only that which you need, you can keep your costs low.
If you are looking forward to taking out funds, get online personal loans up to $15,000.