Personal Loans By Mail
Personal loans by mail offer the convenience of completed loan paperwork at home and the peace of mind in knowing personal information won't be seized by a computer hacker. Even though the Internet provides a great way to quickly compare rates and identify the best lender, many borrowers are wary of submitting their personal information via the cyberspace highway. Most lenders enable applications to printed out from their website online or request that one be mailed to the borrower. The necessary paperwork can then be completed at one's leisure at home and the completed application mailed back in, preventing personal information from being electronically hijacked.
These agreements handled through the postal service can confidentially and quickly provide the cash needed for any financial situation. They are the most highly requested type of financing. Sometimes called signature financing, personal loans by mail allow borrowing money based upon good credit without placing any possessions or property as collateral or security. Unlike some financed agreements, a personal loan by mail can be used for virtually any purpose vacation, wedding, new car, home improvements, or debt consolidation.
This method of obtaining financing is advantageous for non-homeowners and for individuals who need a one-time large sum of money for an emergency need. Personal loans by mail typically require less paperwork than a conventional offer and approval times are faster, and while amounts vary widely, ranging anywhere from $500-$250,000, more typical amounts are $1000-$3000, repayable on a monthly basis within a maximum of 3-5 years. The amount available to be borrowed depends on the borrower's credit history and current earnings.
In addition to completing a standard application, there are additional forms that will have to mailed in for the personal loan by mail. Banks will require documentation for employment verification, such as a pay stub, and will run a credit report. The amount awarded for personal loans by mail is based upon salary and credit history. With good credit, a bank may offer up to four times the monthly salary for a year, but policies vary from bank to bank. Because this is an unsecured deal without collateral, rates are higher than secured deals, ranging from 12-20% but still less than the interest rates on credit cards.
Since lenders carry more risk with a no collateral loan, not everyone can qualify for this arrangement. Those with credit problem will have a more difficult time qualifying and will be awarded smaller sums since the bank has no guaranteed property or assets to repossess should the borrower default on the arrangement. However, defaulting on a personal loan by mail is not without its consequences. Banks can pursue the funds owed to them through the court system and court decisions can garnish wages or seize possessions of value.
A mailed offer can provide the offer sought for home repairs, bill consolidation, or a dream vacation. These deals are ideal for individuals with good credit who want fast and convenient approval on a loan for their individual financial needs, but don't want to send their individual information across the Internet where it might be intercepted. "Take heed to yourselves that your heart be not deceived" (Deuteronomy 11:16).