 TITLE: How a Personal Loan Can Affect Getting a Mortgage CONTENT: How Do Personal Loans Work?\n---------------------------\nPersonal loans are a form of installment credit that offer borrowers access to the full loan amount upfront in exchange for regular installment payments over a set repayment term.\nOne key characteristic of personal loans that sets them apart from many other loan types is that most of them are unsecured, which means there's no collateral involved. Also, with few exceptions, borrowers can use personal loan funds for just about anything they want.\nIn return, personal loans typically charge higher interest rates than secured loans, such as mortgage and auto loans, so they're not always the best option if you're planning a large purchase. END