Have you recently seen or heard an advertisement about personal loans that piqued your curiosity? Maybe you have some remodeling to do on your home, or you want to take a vacation and you're wondering if taking out a personal loan would be a good idea?

If you need more information before making the decision to take out a personal loan, here are the answers to 3 frequently asked questions that can help you to decide.

1. Where Do I Get a Personal Loan?

There are three types of institutions that offer personal loans, including banks, credit unions, or online lenders. Personal loans are considered unsecured loans, which means there are no assets or any other type of collateral that secures the loan. If you don't qualify for an unsecured loan there are a few more options including:

• Secured loans - you'll need to put up collateral, such as a car or other asset
• Cosigned loan - if you're credit is poor, someone with good credit can be a co-signer on the loan

If your credit score is less than perfect and you can't find a co-signer, your best option might be an online lender.

2. How Do I Qualify For a Personal Loan?

When qualifying for a personal loan, the better your credit, the lower your interest rate. For example, if your credit score is 750 and above, you can qualify for a personal loan with an annual percentage rate (APR) of 8.99%. However, if your credit score is under 620, your APR will be as high as 17.99%.

Besides credit score, a lender will look at your debt income ratio, which is the percentage of your gross income that goes toward paying your debts. Personal loans typically have terms of 2 to 5 years.

3. What Are Personal Loans Used For?

Personal loans are used for a variety of things, but some of the top reasons people take out a personal loan include:

• To cover a financial emergency
• To consolidate debt, such as credit cards and medical bills
• To make home improvements
• To pay for a wedding
• To pay for education expenses

Some people also take out a personal loan to take a much-needed vacation. If you take out a personal loan and make all your payments on time, it can even boost your credit score.

Now that you know where to get a personal loan, how to qualify for one, and what they are used for, it's time to get started on your personal loan application. If you are in the market for a personal loan, check out US Community Credit Union.