Personal loans are loans that are unsecured, but you can get them instead of credit cards and you often can get a lower interest rate, especially if you apply through your own bank. You might consider getting a personal loan if you want to buy a new computer, are looking for a way to start your credit or if you just need a little extra cash.



However if you are interested in getting a personal loan, it is best to have a co-signor or very good credit. You see by being unsecured there is no promise that the lender will get anything in return for the loan if you don't make your payments on time, so they like to be sure it will work out.

If you already have a bank account and decent credit, you should have no problem. There are several ways you can apply. Most banks have some kind of application they allow you to use on their website so that you can apply. You will probably be able to see the terms of the loan and maybe even interest before applying, as well as your monthly payment amount. If they don't have this option you can always call your bank or go there to fill out an application. When you do this, someone will automatically look at your application and you could have an answer much faster than if you just applied online.

Another bonus of using your own bank for personal loans is if you allow them to take the payments automatically from your account they may be able to drop the interest rate a bit for you.

If you don't have good credit you should try to find a co-signor. If you have family or friends who will co-sign for you that would work, because most personal loans will be for $500-$2000. Once you find a co-signor you will do the application the same way, but when you sign for the loan your co-signor has to be with you. Remember though if you get a co-signor for your loan this will all go on their credit as well, so make sure you keep up with the payments.

If you have a hard time with your bank, or you can't get a personal loan because you have no co-signor you might consider checking out some places online. You can try prosper.com where people give each other loans. The interest rates are higher than if you went with a bank, and all payments are through your bank, but you can almost always find someone to loan you the money there. Just be sure to have the money available on your due date because you can seriously mess up your bank account by bouncing payments and such.

Personal loans are all over the place, and you should be able to find a place to get one without a problem. It might just mean you have to have a co-signor. But if you use your personal loan and make payments on time, or even pay it off early, you will certainly see the benefits on your credit report, causing you to have less trouble the next time you need a personal loan.