How Much Can I Get In A Personal Loan?

Online, July 19, 2011 (Newswire.com) - With a personal loan, you can get the money you need to do just about anything - you can buy whatever you need or pay off your debt.

Maybe you've been struggling with a mountain of debt. A personal loan is a fast way you can set up a debt consolidation program. You can consolidate all of your debt into one easy payment, and you can even get it at a lower interest rate than what you're paying now.

You can use your personal loan for something fun, too. You can finance your wedding and the honeymoon too. Or maybe you'd like to take that long-awaited vacation to an exotic island or distant land.

Personal loans can be a great tool if you use them properly. Personal loans are unsecured, and because of this, cash can be obtained quickly, based solely on your credit history. But keep in mind that in exchange for this fast cash, you will have fees, higher-than-normal interest rates and strict repayment schedules.

But a personal loan can help you get your credit back on track. If you have a less-than-stellar credit history, you can get back on course by properly securing, managing and repaying your personal loan. This will show that you can manage your finances and can improve your credit score.

But how much can you borrow? Those with low credit scores will only qualify for bad credit personal loans, which carry the higher interest rates and inflexible payment plants. Those with better credit scores get the better loans.

Based on your credit history and income, personal loans can range from $1,000 to $150,000. Those with a poor credit score may only qualify for a maximum of $1,500.

These differences exist because personal loans are very risky for lenders because they are unsecured, generally speaking. They are granted on your credit history, income, length of employment, years at your current job and other factors.

Regardless, a personal loan can be a great way to rebuild your scarred credit history. Even if you only apply for the smallest amount possible, as you repay it on time, you can rebuild your credit. This will mean that the next time around, you'll find that things will be much easier.