A personal loan is borrowed money that one pays back over a fixed amount of time. It is also known as a type of installment loan. While you can get the fund upfront, you will pay it back along with fees at a fixed, monthly rate. Millions of Americans take on personal loans every year to consolidate debt, pay unexpected expenses, and fund home improvements. Below is a brief introduction to personal loans and how Pure Finance Group can help. If you have any questions, feel free to contact us!
Types of Personal Loans
There are two types of personal loans: secured and unsecured. A secured personal loan requires collateral to stabilize the loan. If you cannot pay the loan back, one will set down an asset like a house or vehicle as collateral to pay for it just in case. The positive side is that you will likely pay less interest.
An unsecured loan does not require collateral to back it up. However, your credit score health may be the qualifying factor of your application. Naturally, lenders are more likely to let you borrow a higher amount and have lower interest rates if you have a high credit score. If you have poor credit, the right lender will still have a personal loan deal for you.
Types of Lenders
One can find lenders in different formats. Aside from the bank, one can find lending programs through credit unions, online lenders, peer-to-peer lenders, and consumer finance companies. Online lenders are up and coming on the scene and offer convenience, expertise, and brokerage services. Of course, it is always best to do your research. If you have any questions about Pure Finance Group, we are happy to answer them all and provide you with our experience.
Impact on Credit
Taking on a personal loan may or may not have an impact on your credit score. If your lender makes a hard inquiry and takes a few points from your credit score for taking a loan, your credit score has a negative hit. On the other hand, if your lender makes a soft inquiry, such as a credit score review, your credit score remains the same.
Personal Loan Fees
Before signing on the dotted line, one should count up the total cost of what one will pay back aside from just the loan itself. Add up the interest rate and any other fees as well. Other fees could include origination fees and prepayment penalties. Pure Finance Group works to get your deals with no such fees at all and the lowest interest rates.
Pure Finance Group Is Here to Help!
Thank you for your interest in Pure Finance Group. We’re so excited you’re here. For more information on how our lending services can help you with your home financing needs, give us a call (410-401-4957) or fill out the form on our contact page today. If you have a question about any lending services we provide including home improvement loans, we are here to help answer all your questions. Just give us a call (410-401-4957) or contact us today. To keep up-to-date with the latest financing tips and solutions, keep in touch with us on Facebook and LinkedIn!