Where Do I Get
a Personal Loan?

Lenders are everywhere! Down your street, across town and on the internet, lenders promise you a variety of options. There are several different types of lenders for you to choose from, some of them good, some of them disreputable. With the many choices available today you need to know who is a legitimate company and who just wants to take your money and run.

Credit Unions

A credit union is similar to a bank. It offers many of the same services–checking and savings accounts, mortgages and loans. The difference is that the credit union is owned by the members. Credit unions are smaller than banks and, because the members all have a share in the credit union, may be more customer oriented. This can be a plus for you.

You may find your credit union can offer you better terms and interest rates than a larger lending institution. They also tend to lend smaller amounts, $500.00 or less. Larger places do not want to handle those types of personal loans. It is not worth their time. Credit checks may be more limited, so if you have a credit problem this could benefit you.

The downside is you need to belong to one. This means having a checking or savings account there. And since different credit unions exist for different reasons, a teacher’s credit union for example, you may not be able to join. Most cities should have at least one credit union that you would qualify to join.

Banks

This is the typical place most people think of when they need money. And in the past it was the only choice. But today banks are not the locally owned entities they once were. They are big business. A bank can still be a good choice if you have an established relationship with one and your loan amount is at least $2,000. Personal loans for less than that amount are not worth their time. Personal loans are poor risks to banks, which prefer to make their money from home and business loans.

The advantage to a bank is that you may already have established credit through a mortgage loan, checking account, or the like. Also, there are plenty of them around. Local banks usually have branches all over town, so they are convenient. And as stated, if you need a larger amount of money they may be a good choice.

Be aware though, if you are looking for a small amount they may try to get you to qualify for a credit card instead. This is not a good thing; interest rates are higher and you can get caught up in debt quickly this way.

Online Loans

The internet literally puts the world at your fingertips. There are many reputable lenders that you can have access to immediately even though they may be in the neighboring state or even across the country. Lending Tree is a good example of an online company that offers a variety of loans including personal loans.

One advantage to using the web to shop around is it makes comparing easy. You can see what a variety of companies offer, their rates, and what they charge for extras. Even if you do not buy from one of them it is a good idea to compare this way.

Another advantage is you'll have your answer in minutes. Fill out an online application, hit the submit button and within no time at all, you know whether you have been approved or not. Borrowing could not be easier.