An envelope filled with $100 bills, symbolizing what a personal loan is

As you likely know, life gets expensive fast. Whether you need money for sudden expenses or ones that have weighed on your mind for a while, you can get relief from these costs through obtaining a personal loan.

But how does getting a personal loan work? What are the benefits of personal loans? Forward FundingTM has the answers to all your questions.

What Is a Personal Loan?

A personal loan is an arrangement between a borrower and a lender. If you need a personal loan, you must find a lender willing to loan you money. You then agree to their terms. Once that’s done, you get your money.

The next step of how a personal loan works involves making installment payments, meaning paying back a small portion of the original loan amount plus additional expenses toward loan-related interest.

Benefits of Personal Loans

Deciding to apply for a personal loan is a major decision. Before taking this step, wanting to know what makes personal loans beneficial is understandable.

Versatility

A barrier to entry when seeking a loan is dealing with strict loan types. Some loans can only go towards a home. Others must go toward funding a business.

Choosing one expense to pay isn’t always easy or even possible. Thankfully, the funding obtained from personal loans can pay for a wealth of expenses.

Common personal loan uses include:

  • Emergency expenses
  • Starting a new business
  • Debt consolidation
  • Home renovation projects
  • Education-related costs
  • Vehicle repairs
  • Medical expenses
  • Weddings
  • Buying big-ticket items (appliances, furniture, etc)
  • Funerals

Collateral Rarely Required

Sometimes, life’s challenges can seem unrelenting. Because of that, someone seeking a loan may not have much left to use as collateral.

Collateral is something of value that a lender takes possession of temporarily as a borrower repays their new loan. If a lender defaults (stops paying) on their loan, the lender has the right to keep a borrower’s collateral.

Fortunately, a benefit of personal loans is that most don’t require collateral. That means you don’t have to risk anything of value. Forward FundingTM can help ensure you find only personal loan options with no collateral required.

Fixed Rates Often Available

Rates are crucial factors for anyone learning what a personal loan is. A loan’s interest rate determines the amount of your repayment installments. The higher the interest rate, the more money it costs to pay off your personal loan.

Thankfully, a personal loan often offers fixed rates. Fixed rates stay the same. If you obtain a personal loan with a fixed rate, you don’t have to worry about fluctuating loan payment amounts.

A Lump Sum Payment

Another personal loan benefit is that they’re typically available in a lump sum payment. An annuity is another type of loan in which you receive funds over time in set intervals. Do you need a sizable payment all at once? Lump sum payments are the way to go.

Potential Credit Score Improvement

Initially, loans won’t positively impact your credit. Credit scores affect your ability to qualify for a loan, finance a home, and more. Fortunately, someone can increase their credit score in many ways. One method is making on-time loan payments.

Frequently Asked Questions (FAQs) About Personal Loans

Someone realizing the benefits of a personal loan by using it to pay bills on their table

When researching what a personal loan is, you may come up with additional questions. Here are the answers to questions Forward FundingTM often receives about personal loans.

1. How Long Does the Personal Loan Approval Process Take?

You can rest assured that Forward FundingTM works to process loan applications and secure your funds quickly. Some of our customers get access to their funds in as little as 24 hours.

2. Is Forward FundingTM Legit?

Yes, absolutely! Forward FundingTM is a lender accredited by the Better Business Bureau and Consumer Affairs. We also use SSL secure encryption technology for superior safety with all client-related information.

3. How Does Forward FundingTM Work?

Our company uses a fast and simple process to help those seeking financial assistance. First, check your rate and answer a few quick questions. Next, we’ll explain what plans are available to you. After choosing your plan, we’ll get your funds deposited right away.

Find a Personal Loan That’s Right for You

Personal loans can be confusing. We hope that we helped you understand what a personal loan is. Find a wealth of attractive personal loan options by contacting Forward FundingTM. We’re here to assist you. Let us help you understand available loan offers. Forward FundingTM can also guide you through applying for a loan or any other related questions or concerns you have. Check your rate today to get started!

A person counting the money they received after comparing personal loans

There’s a world of loan offers out there. As you apply for a loan, you’ll see offers touting low interest rates, flexible payment terms, and more. All this information can be confusing.

Whether it’s your first time applying for a loan or it has been a while since getting a loan, you might be unsure how to compare your personal loan options.

Let the skilled professionals at Forward FundingTM provide the help you’re after. Learning about these vital loan-related factors can help ensure you find the right personal loan.

What To Consider Before Choosing a Personal Loan

On the surface, selecting an ideal personal loan might seem confusing. Knowing what to compare can be a major help with this problem. Use these factors to find the right loan.

Minimum and Maximum Loan Amounts

Every loan has a maximum amount. That total is the most money a lender will loan out. Before choosing a personal loan, ensure you’ve found one with a maximum that meets your financial requirements.

Also, consider choosing a loan amount slightly higher than what you assume you’ll need. By doing so, you could avoid paying for unexpected fees or project-related expenses out of pocket.

Some loans have minimums. In this instance, a loan’s minimum amount is the least amount of money you can borrow. If a loan’s minimum amount is much higher than what you need, looking into another loan option could be your best move.

Comparing Personal Loan Rates

Another vital step in the loan comparison process involves looking at rates. A personal loan almost always has an interest rate. Some personal loans also include an additional annual percentage rate (APR). If you obtain a loan, you’re paying back the amount you borrow in addition to a loan’s rate-related fees.

Also, find out whether a loan offers fixed or variable rate interest. This step is a crucial part of any personal loan rate comparison. Fixed-rate loan interest doesn’t fluctuate. Variable-rate interest changes based on underlying factors or at time-based intervals.

While variable interest sometimes means making lower payments, it can also mean rising loan-related expenses.

Loan Terms

Terms are also important to consider when comparing personal loans. A loan’s term is how long this arrangement lasts. Shorter and longer-term loans have advantages and disadvantages.

You can pay off a short-term loan faster than a long-term loan. However, short-term loans also entail higher monthly payments. Most lenders also allow a borrower the option to pay off a loan early.

For example, picture a lender and yourself working together to choose from a wealth of loan options. A lender offers you a loan for $25,000—you can choose between repaying your loan in 10 or 20 years. If you don’t mind higher monthly payments, the 10-year option would be best, but the 20-year loan would be better if you prefer lower monthly payments over a longer period of time.

Funding Speeds

Sometimes, you need money fast. Waiting days or weeks for funding isn’t a viable option in these times. If that’s the case, look for a lender or loan option that offers fast funding.

If funding speed isn’t a major concern, you can enjoy the advantage of a larger pool of potential personal loan options.

Forward FundingTM is the company to contact if you need a personal loan fast. We have an expansive network. This lender network lets us offer a variety of personal loan products tailored to those who need money right away.

Frequently Asked Questions (FAQs) About Comparing Personal Loans

Do you need more information about comparing loans? Here are the answers to frequently asked questions about choosing the right personal loan.

1. How Do I Find the Best Personal Loan?

Navigating personal loans by yourself can be exhausting. We recommend contacting Forward FundingTM. We’ll show you what loan options are available.

2. Does Comparing Personal Loans Affect Your Credit Score?

No. However, beginning the loan process can impact your credit.

3. Is Forward FundingTM a Legitimate Business?

Yes. Our established business is accredited by the Better Business Bureau and Consumer Affairs.

4. How Does Forward FundingTM Work?

We make the personal loan process simple. First, you’ll check your rate. Then, Forward FundingTM shows you your options. We always work to ensure you have personal loan options suited to your needs and preferences. After accepting your loan, you receive your funds.

Get Help Comparing Personal Loans From Forward FundingTM

Are you still confused about loans? Would you like a professional’s guidance regarding personal loan rate comparisons? Contact Forward FundingTM today. One of our friendly specialists is ready to walk you through your personal loan options. Apply now to get started.