Personal loans and unsecured loans are two good loans if just a small amount of cash is needed quickly. It may or may not be necessary to have good credit to get these loans. The credit history is only an issue if the loan is from a regular financial institution rather than from a payday loan source.

Personal loans are also known as signature loans. A true signature loan is not backed up by any collateral items. It is given purely based on trust that the individual doing the borrowing will repay the loan faithfully and on time. If this loan is generated by a regular financial institution like a bank or credit union, the interest rate is most likely to be low.

A personal loan without collateral is also known as an unsecured loan. There is no recourse other than collection efforts for the lender in case the borrower defaults on the loan. If the loan is from a bank or other financial institution, there will be a credit check.

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