Just like any challenge, it is always wise to know what you are getting into. Loans work the same way. But there are just lots of loan kinds. Getting to learn every type will help you pick the one that suits your need.
Short-term personal loans, secured personal loans, high-risk personal loans, student loans, military personal loans, auto loans refinance, signature personal loans–all these are available to an individual who is looking to borrow money between one and five years. Right now, there are two kinds of loans for personal use.
Secured Loan: Here the loan includes the attachment of collateral–say, your property or any fixed/movable asset–against the sum of money borrowed. You risk losing your home should you default on repayments.
A direct opposite of secured loan is the unsecured loan. Its primary benefit is that no collateral is needed. However, you will be made to pay higher interest rate, considering the high risks involved. They might even take you to court if you are unable to pay.
Applying for home loan, for instance is not easy. After all, you will be under credit check. Some reasons for disapproval include a bad credit score, rising mortgage payments, or a cancelled credit card. Getting a protection policy for the payments you have made that covers full payments would be advisable once your loan is approved. This will absolutely give you peace of mind.
The following are other types of loans:
1. Short-Term Personal Loans
Short-term unsecured personal loans can be got through banks and online financial companies and a wide variety of other options. Normally, interest rates are high in these varieties of loans. This is because the duration of repayment is commonly for a short time. The high interest rate is also to ensure the interest of the lender.
Internet lending companies only conducts an extensive credit investigation but only a small amount may be given.
Personal loans that are short term has its plus and minuses. Nevertheless, always perform a thorough assessment of the type of loan you want to avail.
2. Fast Payday Loans (Fast Cash Advance Loans)
Sometimes you may be in need of a quick payday loan so that you could settle an unexpected money crisis. They may come in the likes of surmounting bills and car repairs. If you don’t have money to finance those, then opt for a cash advance.
Payday loans are ideal solutions for quick money needs since it is easier to get one, plus there is always a big opportunity that you could qualify. But expect to pay the loan just as your paycheck arrives. To become part of it, you must be at least 18 years old and working, with permanent salary. This will guarantee them that you can indeed pay the loan.
One of the advantages of a fast cash advance loan is its capacity to give you up to $1,000 and a cash advance. If you’re lucky, the company may even give you something higher.
These types of loans require partial payment in two weeks while the rest must be paid within a month. This is called as 30-day payday loan. Typically though, you must pay the loan in two weeks’ period.
Not all agencies offer 30-day payday loans or long-term cash advance, so pick your company wisely. Far better to enter into a long-term loan contract, before taking the loan; otherwise, you would have to pay extra interest and fees for the late period.
3. Military Personal Loans
Military personal loans are easy for servicemen to get anytime. If they want to buy a house or a car, they can always opt for army military loans to absorb the remaining expenses. The reasonably priced loans are also applicable for disaster relief, career service, or bereavement. They have one of the lowest interest rates.
By Jake Jenkins
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