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A personal loan can give you the funds you need to pay for something special. It allows you to be flexible with the amount you borrow and gives you options to create steady repayment periods. Anyone can get a personal loan, and many people do as they’re generally used to purchase a new vehicle or upgrade. This can range from getting a personal loan for Cars, to Caravans and even A Boat.

The different types of personal loans include a fixed Interest Rate Loan, where each repayment amount is fixed so you’ll know exactly how you need to pay and when but there might be an early exit fee.

Another common type of loan is a Variable Interest Rate Loan, where the repayment amount will change based on the international interest rate. If the interest rate increases, the corresponding payment amount increases. If the interest rate falls, the corresponding payment amount decreases. 

Lastly, there are Secured and Unsecured Loans, which are when you can choose to have an asset you own attached to the personal loan as collateral. 

Personal loans are also different from consumer loans. A personal loan can be used for anything, whereas a consumer loan always has a specific asset attached to it. 

For example, a home mortgage is a type of consumer loan. 

What do you need to apply for a personal loan? 

With some larger loans, a common pain point is no or low credit score. One solution is to get a loan with a lower interest rate or find a guarantor. There is also your income and expenses report. If the creditor doesn’t believe you have the money to pay off the loan in the agreed timeframe, they may refuse to give you a loan. 

You’ll also need some basic documentation to secure your personal loan. On top of personal identification, you may need to provide bank statements for the lender to understand your financial situation.

Make sure the information you provide is accurate and up to date because any errors could be listed in your credit report.

Occasionally, there can be errors in your credit report if you have to submit it for your loan.

How much can I borrow for a personal loan?

Loans below $3,000 are usually for essentials, like a bed or fridge. Personal loans that are around $30,000 are mainly used for vehicles or long holidays. 

The amount of money you can borrow depends on the type of loan you apply for, your income versus your expenses, your residential status, any dependents you might have, and in some cases, your credit score.  

Applying for a personal loan requires careful planning. You need to figure out what type of loan is best for you and how you can make the repayments on time. 
But you don’t need to do it on your own. Websites like ours are here to help you find the best personal loan for your situation and a repayment schedule that works for you. We offer fast quotes to help get you on the road towards making that significant purchase.

Secured vs. Unsecured Personal Loans, What’s The Difference?

A secured personal loan means attaching an asset you own (like a car) as a security guarantee against your financing.  An unsecured personal loan is the opposite. You can borrow a sum of money with zero assets attached.

Secured personal loans have a faster approval time and lower interest rates. However, if you cannot make the repayments on time, the lender has the right to acquire your asset as collateral. 

An unsecured personal loan has zero assets attached but will have higher interest rates, meaning you may have to pay back more in the long run. 

Secured loans will suit people looking for an upgrade, who already have vehicles or assets they can use as collateral for added insurance, 

Unsecured loans are more suitable for those getting a brand new or maybe their first vehicle. 

Can’t Get A Personal Loan?

Many lenders want to sign you up for a loan as quickly as possible, making it hard to find the right personal loan that will fit your needs. 

At Simply Finance, we listen to you with one-on-one assistance from personal consultants. We want you to find the best personal loan that suits your needs so you can get that something special. Get in touch with us via the Simply Finance Contact Us Page

Simply Finance Team

About Simply Finance Team