More and more people are now in need of a loan and sadly things are only likely to get more difficult over the next couple of years so it might be a good idea to take a look at the two basic types of loans that are available and decide which would be best for you.
If you have collateral of any kind then you will have to decide between a secured loan or an unsecured one, but if you don't have any collateral then you'll have no alternative but to take out an unsecured loan.
It's obviously much easier to get a secured loan because the lender is going to take what you put up as security if you don't pay back the loan on time, but that's also one of its major disadvantages and it's a major thing to take into account.
If there's a strong likelihood that you'll default on the loan then don't put up your house or car or anything else as collateral! If however you have a job that you're likely to hold onto and you simply want to improve your home or to take a needed vacation then go for a secured loan every time because it will be a whole lot cheaper. Before you start checking out the different secured loans that are available make sure that your collateral is a good bit more than the amount that you want to borrow and bear in mind that most real estate is decreasing in value right now.
Although unsecured loans are more difficult to get, they are in no way impossible even if you've had a bankruptcy or just lost your job but the downside is that the interest will be considerable higher. If you have a good credit rating and what looks like a secure job then an unsecured loan won't be all that hard to get and the interest won't be that much higher than for a secured loan. If you're unemployed or had a recent bankruptcy however then be prepared to pay a lot more interest and don't take the loan unless you really have too.
Finally, even if you're in a panic and a need a loan really quickly don't take the first one that's offered to you but at least try to compare two or three of them. And if you don't need a loan right now then check out some ways of reducing your debts or improving your credit both of which will be a big advantage if you do decide to take out a loan at a later date.
http://home-loan-help.org is one of a small network of sites and each offers a different kind of help. They have information on loans, credit repair, debt reduction and financial advice so check them out for free.
