Exemplification Essay: Two Types Of Personal Loans

Personal loans are easy to obtain. They can be used for a variety of financial needs. However, the worst of your credit is the hardest time you get a personal loan at decent prices. There are two types of personal loans, secured and unsecured. Unsecured personal loans no collateral to get the loan. If you have bad credit, you will only be approved for a secured loan because you are considered a high risk. The types of collateral accepted include vehicles, goods and other property. The guarantee has sufficient value to cover the balance of the loan.

There are several reasons why people have bad credit. Perhaps they were reckless with their money and finances. For most people this is not the case. This conclusion may be the result of death resulting in loss of income. The resignation or revocation of a …show more content…
Therefore, they are willing to take a chance to prove proof of liability and repay the personal loan. You probably have a high degree of interest as part of your personal loan and this can leave a bitter taste in your mouth. Take it in stride and look at the bright side of things. Getting a personal loan at an interest rate can help you rebuild your credit. Make sure you pay your payments on time. To make money on the interest they pay for savings, consider extra payments whenever you can.

Be careful when applying for a personal loan online. There are scam artists out there who feed on those who need a personal loan, especially if you have bad credit. Never agree to pay processing fees and other types of payments. It is contrary to the law of the Federal Trade Commission for any lender of personal loans to apply for financing costs for processing. Many people are sucked up with bad credit in this scam, because the loan needed so much. It is important to check the lender with the Better Business Bureau. If you are suspicious of everything, do not pursue the loan