It's an uncomfortable feeling knowing you don't have the money to cover an unexpected expense. If you are in need of extra funds and are looking for loan options other than banks or credit unions, a private personal loan may be able to help you move forward.
Private Personal Loans and Lenders
Personal loan financing can come from a variety of different lenders, but private personal loans are usually associated with financing from private lenders or non-institutional groups. While personal loans from private lenders may have higher interest rates, they have a number of distinct advantages:
You don't need perfect credit to apply:
Borrowers who have been turned down by a bank or financial company may be able to get a private personal loan.
Quick application process: Private lenders, especially online lenders, typically have a fast loan application process.
Quick decision process: Private lenders usually have a fast turnaround for loan approval.
Secured vs. Unsecured Personal Loans
There are two basic types of private personal loans: secured and unsecured. An unsecured loan depends on a borrower's credit ranking and credit history and does not require the use of an asset as collateral. If the borrower has a good credit score, there's a better chance of getting approved. This is because the borrower's credit history and score indicate a strong likelihood of the borrower repaying the amount they owe on time. Similarly, if the borrower has a bad credit score and a negative credit history, there's a good chance he or she will not be approved for financing. Some examples of unsecured loans include signature loans, payday loans, some installment loans and credit card cash advance loans.
A secured loan depends on a borrower’s credit history and credit score, but also on the value of an asset or collateral, such as a vehicle title or piece of equipment, that the lender uses as security. An example of this is a hard money loan. In order to receive funds, the borrower must pledge an asset, like a car or a house, as security. Hard money lenders focus on the value of the asset as a way to recoup the principle amount and interest charges if the borrower ends up defaulting.
Personal Loans Through NetCredit
If you're looking for an unsecured loan to avoid putting up collateral, NetCredit offers unsecured, private personal loans.
You can quickly check your eligibility for a loan online through NetCredit and usually receive a decision the same day. You can choose how much to borrow and customize your repayment plan. After choosing your loan, funds will typically be delivered to your bank account by the next business day.