Regardless of state of economy, people always seem to need some sort of financial personal assistant these days. Of course in a tougher economy such as today’s economy, where the paychecks are smaller than rising inflation, and where cash flow is a problem, many people are inquiring about personal loans. As a potential borrower, you must be advised that there are two types of personal loans; a short term loan and a long term one
1. Short Term Personal Loans: These are the smaller type of loans, usually under a $1000. These loans are easier to get and are available by a variety of lenders and creditors. You can get a short term personal loan from your bank, your credit card company, and even from a payday lender. Be advised that because these loans are easier to get, they maybe more expensive and they may also be due sooner.
2. Long Term Personal Loans: These are the type of loans that are a lot more than amount you get a short term loan. In fact, long term personal loans on average started from $2000- $15000 according to MSN’s Persona Loan Center.
These type of loans are certainly cheaper however because they are higher in amount and are to be paid back on long term basis, are harder to get. You must also have to have a good credit in most cases as most long term personal loan lenders do not offer these loans to those with bad credit. If there is a lender that is willing to give a personal loan to those with bad credit or less than good credit, then chances are that lender will charge you higher fees, and may perhaps have some hidden fees so make sure you read all the fine prints.
To learn more on personal loans, read our page on Personal Loan Tips.