Personal Loans - Available Financing for Americans Getting a loan can be a daunting process, but it doesn't have to be. Lending institutions make it easy to get the money you need at a great rate, and some of them don't charge ridiculous fees like traditional financial companies do. A personal loan is a form of collateralized debt, where you borrow money from a financial institution in exchange for your promise to pay back the loan with interest. There are several types of personal loans. For example, some loans are secured by your home or property; other loans are unsecured and require no collateral. Some loans are short term, lasting less than two years; others can be taken out for up to 15 years. Some personal loans have fixed rates while others have variable rates that change over time. Personal loan rates explained Personal loan rates depend on a number of factors: the type of loan (home equity or auto), the length of the loan, the credit score and income of the borrower, etc. The length of the loan plays a major role in determining what kind of interest rate you'll receive on your personal loan. Short term loans tend to have higher interest rates because they're designed to be paid off quickly and lenders don't want to lose money on them if they're not paid off within a certain period of time (usually six months). Longer term loans usually carry lower interest rates because lenders aren't worried about getting paid back as quickly—they know it will take longer for them to get their money back if there's any sort of problem with your budget. Personal loan rates are usually higher than credit card rates, but with good personal credit and a solid repayment plan in place, you can still get some great deals. Most direct lenders offer personal loans for consumers of all ages, so whether you're looking to consolidate your debt or take care of some home improvements, they might have what you need. Personal loans are a great way to get the cash you need, whether it’s for a big purchase (like a car or house) or just to help get you through a rough patch. Typically, the application process is simple and hassle-free—you can apply online or over the phone. Once you've submitted your application, one of customer service representatives will review it and contact you within 24 hours with an answer. If approved, they'll help guide you through the rest of the process so that you can get started with your loan right away.