How to get a persoal loan

Personal finance is one of my favorite topics to write about on hub pages. I do a lot of research before I write and I only write what I believe is true (pleasant or not for my readers, sorry). I think a lot of us got into a mess with our personal financial situations (aside from things that are beyond our control), for a very simple reasons – we did not educate ourselves before signing documents. This hub is going to be about personal loans. There are two types of personal loans: unsecured and secured.

Unsecured personal loan means that no homeownership or any other type of collateral is required. When looking for a unsecured loan you have to consider the following:
Loan amount (usually it is somewhere between $2000 to $15000)

Loan terms (1-5 years)

Interest rate (fixed)

Individual or joint loan

The amount you can borrow will depend on your income, your expenses, your credit score and, therefore, your ability to repay the loan.
Many borrowers prefer personal loans to credit cards because the interest rate is usually lower and the loan terms are set.
You can fill out the application on-line and usually you have to provide the following information about yourself or the co-borrower, if there is one:
Personal information (name, address, phone number, whether you rent or own your residence, Social Security Number, etc…)

Employment information (name of the company, position/title, number of years worked, salary/wages, etc…)

Desired loan amount

The lender will also ask you about you credit situation (excellent, good, fair, bad) and some companies ask for your FICO score (if you do not know your FICO score you can get it for free) Today many banks and credit unions will not offer unsecured personal loans, and if they do, the credit score requirement is usually 650 and above.

Although, there are many companies on the Internet that claim that they can assist you with obtaining an unsecured personal loan with a low FICO score, that is not usually an accurate statement, most of them offer debt consolidation or some other remedy to improve your credit score before they can help you get the personal loan (of course for a fee).
Also, absolutely stay away from the companies that offer you a personal loan with a security deposit (one/two some times six month payments in advance as a security or insurance, or whatever else they want to call it).
Personal loans are offered by banks, credit unions and peer-to-peer lenders. Shop around, check for the best rates, make sure that there is no prepayment penalty, and that you understand all of the terms and conditions of the loan. Then change your spending habits and create your budget before signing for the loan.