The Kitchen Table

How Personal Loans Work

  • October 01, 2019
  • Amanda Orr
  • 0 Comments

Across the country people use personal loans to pay for a specific need when they are short on cash. Things like unexpected expenses, debt consolidation and home improvements. Not familiar with a personal loan? Here is how they work.

A personal loan is a type of installments loan. You borrow a set amount of money and you pay it back with interest. You have a fixed monthly payment and term (which can range from 12 months to 60 months). Once you’ve paid your loan in full the account is closed. If you need to borrow more money, you would then have to apply for a new personal loan.

A personal loan can be either secured or unsecured. An unsecured loan isn’t backed by collateral, you would qualify based on your financial history (typically a pay history that would be seen on a credit report). A secured loan would be backed by collateral, such as an automobile, and if you are unable to make your payments, the lender could have the right to claim your collateral to help reduce the balance of the remaining loan.

If you get a personal loan with LPI, your financial history does get reported to both Equifax and TransUnion, so on time payment would help to improve your overall credit score, plus we work hard to get you the cash you need right away!

If you are one of the millions of Americans who need a personal loan, reach out to your local LPI branch and apply today…you’ll be glad you did!



Employees of LPI Loans and our affiliates are not attorneys and LPI Loans DOES NOT provide any legal advice and users of this web site should consult with their own attorney for legal advice.

 

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