Personal loans are no longer just for consolidating debt; consumers utilize personal loans to fund a variety of purchases: from weddings to financing education and funding new business ventures.
Personal loans offer many advantages, including lower interest than many credit cards. According to recent Experian data, personal loans are growing faster than any other type of installment loan, which is why it’s important for consumers considering this financial product to know the details of what a personal loan is and how to get one.
How can I get a personal loan?
There are two types of personal loans: secured and unsecured. Secured means you put up some type of collateral to take on the loan. With a financial asset (think a car, savings account, or home) held as surety, lenders offer lower interest rates