How Do Personal Loan Compare to Other Loans?

February 10, 2019

If a person is thinking about finding a loan, they may come across personal loans. Personal loans are one of the most common types of lending out there.

If someone is thinking about personal loans, they may be wondering how personal loans compare to other types of loans, as it may help them narrow down their funding decision. Here is more information on personal loans, along with details on other common forms of lending, and how they compare to personal loans.

What to Look at When Comparing Any Kind of Loan

Here are some loan attributes that should be looked at carefully before deciding to obtain any type of loan. Make comparisons to figure out what loan works best for you:

Eligibility Requirements

When thinking about obtaining a loan, it is important to think about eligibility requirements for the loan. Some factors that will be considered for eligibility are credit score/credit history, income, and the ability to repay the loan.

How Quickly Funding Can Be Made Available

When looking for funding, some people may need it urgently, while others may have time to wait. Some loans work faster than others, so the process length is another factor to compare if time is important.

The Average Interest Rates

The lending industry has all kinds of loans and lenders, and interest rates will vary. This a huge factor to consider with a loan, as it is essentially the cost of the loan.

Average Loan Term

The term or length of the loan is another important factor to consider when looking at what loan to take out. Having a longer loan may mean paying more interest, but it also gives a borrower more time to pay back the loan.

How Funding Can Be Used

How funding can be used is an important factor to consider, as some loans are more flexible than others when it comes to spending the loan money.

How Many Lenders Are Available?

When it comes to the more uncommon types of loans, it may be a little difficult to find groups of lenders to work with—without the help of a loan financial referral service.

How Personal Loans Do in These Categories

Here is a quick overview of how personal loans work, and how they do in the categories listed above.

Eligibility

The unique thing about personal loans is that they can be made available to people with a variety of credit scores because they can be either a secured loan (a loan requiring an asset) or an unsecured loan (a loan not requiring an asset). This grants a lot of flexibility in terms of eligibility.

Availability of Funding

Funding from a personal can take anywhere from a few days to a week.

Interest Rates

The average rates for personal loans range between 5% to 36% of the loan’s principal amount.

Loan Terms

Personal loans typically range from one to five years.

Use of Funding

Funding from personal loans can be used for almost anything.

Available Lenders

Personal loans are one of the most common types of loans out there, and so there are tons of lenders available to give out these loans.

What Other Loans Can Be Compared to Personal Loans?

Here are some of the common types of lending out there:

Here is a comparison of these loans in the terms listed above (excluding loan terms because they can vary as a positive or negative for many people). Here are the positive, negative, and neutral aspects of the other types of lending when compared to personal lending:

Auto Loans vs Personal Loans

  • Positive- Auto loans do better with eligibility and how soon funding is made available, as auto loan funding can be made available the same day.
  • Negative- The interest rates on auto loans can be very high, and lenders may be hard to find.
  • Neutral- Auto loan funding can also be used for anything.

Student Loans vs Personal Loans

  • Positive – Student loans can be made available to those with no credit history, a large amount can be given out, and there are several lenders available.
  • Negative- Funding from student loans can only be used for school related expenses, and funding can take a few weeks to a month.
  • Neutral- Interest rates are similar to personal loans.

Payday vs Personal Loans

  • Positive- Payday loans are easily available and designed to provide quick lending.
  • Negative– The amount is usually no more than a thousand dollars.
  • Neutral- Interest rates for payday loans are average.

When thinking about a personal loan, it may be helpful to compare other common loan types to figure out what loan will work best. When it comes to comparing loans, it is important to look at several different factors. Personal loans are great for those who can wait a couple days for funding, want average interest rates, and want to be able to look at several lenders.

DISCLAIMER:
The MaxCash website does not offer or provide loans, but rather, it offers a service. It should not be construed as a lending agent or broker. The site does not endorse any lenders and does not charge visitors any fees. The website owners do not evaluate potential lenders’ applications, nor do they approve or deny credit. The MaxCash website does gather applicants’ personal information and transmits it to lenders that are part of the site’s lending network. No one is required to make use of this website, nor are they under any obligation to begin contact with site operators or to attempt to secure a loan with any of the site’s lending partners. Transmission of your financial and personal information on the website in no way obligates lenders to offer you a loan or any other kind of credit product. Be aware that cash transfer times can vary, depending on the lender and the bank you use. It may be necessary to fax information under certain circumstances. All questions about loans, and any concerns you may have should be directed to your lender. These loans are intended as short-term financial solution to satisfy borrowers’ needs for immediate monetary relief. This is not intended to be part of a long-term financial plan for individuals. These services are not offered in all states. Potential borrows may undergo credit check if lenders choose to use any of the major credit reporting bureaus, including Equifax, Trans Union and Experian. They may also use other alternative sources to check credit ratings. Your request for a loan constitutes your agreement and acknowledgement that (A) your personal data may be shared with lenders and perhaps other third-party partners, and (B) lenders can acquire credit bureau reports that detail your credit history. Reports from major credit bureaus, such as Equifax, Experian and TransUnion may be obtained and used to evaluate your reliability as a borrower.

1Loan amounts by the lenders vary based on qualifications.

2Since we do not lend money directly we cannot offer you a solicitation for a loan. In all serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans are not available in all states and all areas.

3Loans such as, Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan. Other types of loans may have pre-payment penalties as well.

4All lenders are responsible for their own interest rates and payment terms. Max Cash has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

5The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you. Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time, in the circumstance for an auto title loan. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically, larger loans or higher risk loans use a GPS.

In some circumstances faxing may be required. Use of your cell phone to receive updates is optional. Please review our privacy policy.

Loans such as Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long-term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

Signature and personal loans are only available in Georgia and Florida. Loan amounts differ at locations. Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.

Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

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