Banks That Offer Personal Loans

Banks that offer personal loans are everywhere; any lending institution whether bank or credit union wants to capitalize on this lending option for their customers. These financial institutions allow the consumer to spend the money on whatever they desire. While banks that offer personal loans typically offer an array of other lending options, this particular lending option yields the highest interest to the lender who typically requires some sort of collateral to be pledged to secure the loan. 

In some cases, the borrower's credit score and income to expense ratio is enough for banks that offer a personal loan to forgo the collateral requirement and provide the personal loan to the lender based on their signature. A credit card company allows cash advances in much the same way. Credit score, income, and expenses are calculated to create a personal spending limit. Banks that offer personal loans also allow their borrowers to have a spending limit. Some of these lenders also offer the borrower a line of credit.

Instead of one lump loan sum distributed to the borrower, they receive checks. The borrower can write these checks to themselves for cash or write them to merchants. The banks that offer a personal loan and line of credit only charge interest on the amount of money the borrower has used. As the borrower pays down the balance, the available limit increases. Repayment is usually made monthly directly to the lenders. Some lenders require that automatic payments be deducted from the borrower's checking account for repayment on the total lended. Borrowers need to be sure of which date the payment will be deducted to avoid any overdrafting. 

Borrowers interested in receiving the lowest interest rates from banks that offer personal loans should receive copies of their credit report from all three nationally recognized credit reporting agencies. These three agencies are Equifax, Experian, and TransUnion. Once the credit report has been reviewed, correction of any inaccuracies and methods to improve the score should be decided. It is important to note that as a Christian borrowing money, the promise to pay the amount back to the banks that offer a personal loan is not only to the lender, but to God. When a Christian gives his word of repayment, he is expected to do so. In the Bible, Ecclesiastes 5:4-5 says "When thou vowest a vow unto God, defer not to pay it; for He hath no pleasure in fools: pay that which thou has vowed".