Almost nobody has the money today to buy expensive with cash up front. That’s why there are so many options of financing that purchase. It can range from financing a wedding, a car or a house. You might need some cash for starting that new business or for an emergency. There are lot of financing options out there for every need but it’s not so easy to just go out there get a loan and come back. With so many options to consider you will have to educate yourself about which type of loan is best for your situation. Each of these different loans are meant for different purposes and within them there are options for people with different financial situations. Getting a loan which isn’t right for you can end up weighing down on you for years or even decades.
Personal Payday or Installment Loans Online
Another interesting thing here is that almost all of them are a sub type of installment loans. If you were to search for installment loans near me, chances are that you will be greeted with any of these. But not all installment loans are the same, so don’t feel comfortable if a lender offers you a deal by calling it an installment loan.
There might be a time when you need some cash quickly for an emergency or for things which are not really that expensive. For these situations you can go for an unsecured personal loan. These are also used for debt consolidation purposes. But what are unsecured personal loans in the first place?
When you don’t have put up any collateral for getting a loan, it is known as an unsecured loan. You might be facing higher interest rates when compare to a secured loan but usually these types of loans don’t have a long-term payment option like the secured types.
You can consider this type of loan for expenses such as weddings or for consolidating your credit card debt. A lot of people take out a personal loan which is equal in amount to their credit card debt and they use this amount to pay off their credit card. This is done because the interest rates on personal loans is less than that of credit cards. So, it will be cheaper over the long run. Taking EMIs out for small or big purchases is also a type of unsecured loan.
While going for this type keep in mind what the credit requirements are. Giving out an unsecured loan is a risk for any lender or creditor, and they will be looking at your credit rating to see if you are a good bet or not. if you have a lower rating the interest rates can be pretty high.
SECURED PERSONAL LOANS
As you might have guessed this, when you have to put up some asset as collateral while getting a loan it is called a secured personal loan. This is the better option in my opinion for loans which involved long term payment options. This is because of the lower interest rates that you will be getting. But one thing to keep in mind is the potential loss of that asset in case you default on your payment. The asset can be anything from your car to your house.
We would only recommend going for payday loan or personal loan option when you are in desperate need for cash for an emergency such as small medical bills. The reason why I am saying this is because of the high interest rates you will be facing. And by high interest rates I am not joking around, you might be facing up to 400% annual interest rate.
The amount of people who go broke while trying to keep up with the high interest rate is astounding. A lot of states have been made payday loans illegal. If you are considering going for this option, make sure you understand all the terms properly.
Title loans are kind of like payday loans but in this case, you are giving away the title of your car for anywhere between 25 to 50% of its value. The usual payment structure is that you will have to pay the amount back withing a month or two and in case you don’t, you might lose ownership over your car. These days there are a lot of banks and institutions which provide so called no fax loans, basically which usually means that the whole process is really quick and online.
The interest rates here are pretty high, almost as much as payday loans. This might the last option you should consider and only go for this if you are in need of emergency cash.