PERSONAL LOAN

Personal loans are a form of debt from a bank, credit union or online lender that come in one-time fixed lump sums. They come with fixed annual percentage rates (APRs) and fixed minimum monthly payments.

Some lenders charge additional fees for personal loans. One example is an origination fee, a one-time administrative fee you pay when you open your loan.

Since personal loans are typically unsecured loans, you won’t need collateral to apply for one. Instead, you need a good credit score and a consistent and solid credit history. However, some lenders offer secured loans if you have bad credit or want to qualify for lower rates.

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Personal loans can generally be used for just about any purpose. Here are a few of the common reasons to get a personal loan:

 

• Refinancing or paying off credit card debt

• Home improvement projects

• Medical bills

• Traveling

• Wedding/honeymoon costs

• Emergency expenses