Loans can be scary things to the person who has never had one before or who did have one and had an awful experience. Loans are great for emergencies, building or repairing credit, and allowing you to obtain your goals faster. There are all sorts of loans that will help you do things like buy a house, buy a car, pay off some medical debt, or even get you a new laptop. Today we are taking a look at different types of loans, how they function, what they are for, and how you can find them.
Have you ever just paid all your bills down to your last dollar and then had a car accident? Or maybe you didn’t make enough money and now your electric might get turned off. Things happen that are beyond our control sometimes and we are left with a situation that could get worse. That is where a cash advance can save your day. Cash advances are loans that you take out and have to pay back in a short amount of time (usually by the next payday). Blue Trust check advance loans are just one example of the companies that offer these easy to obtain loans. You can usually apply online and if approved the same day, you receive the money by the very next day into your bank account. Interest rates are high so do be sure you pay it back in full on your very next payday!
Home loans, or mortgages, are one of the most common types of loans that people eventually obtain. It is for the sake of purchasing your own home, rather than staying in rentals for the rest of your life. Most often, people go to their bank to apply for this type of loan but there are other options. Quicken, Loan Depot, and Lenda are not banks and offer loan programs to a wide number of people. Of course, we still suggest you check out the local credit union for more flexibility on mortgage rates and terms. No matter who you go to, there are commonalities in the process. You apply and they check your credit history and credit score. If you are approved, they will show you the interest rate you qualify for (the better the credit, the better the rate) and payment terms. Since it is homebuying, most loans last around 30 years. Before applying, check your own credit history and score in case you need to do some damage control. Also look for variations of the home loan that you may qualify for. Veterans can qualify for a VA loan and first-time homebuyers can find programs just for them.
The personal loan is a fantastic tool to help your credit and get you something you may need sooner rather than later. Personal loans can help with minor car repairs, home repairs, or obtaining new appliances or tools to make your life easier. These are smaller loans that can range from $1,000 and up to $25,000 depending on your bank. Most of the personal loans have a repayment term of monthly payments for a year. However, larger personal loans can be longer based on the value and your income. The interest rate will vary based upon your credit history and credit score. If you are repairing or kicking off your credit, this is a perfect tool to build healthy credit in a short amount of time.
There are lots of loans within each type of loan out there. Always shop around but do not apply for every loan you come across. Too many hard credit pulls will lower your score drastically and make it harder to get it back up. Wait until you are sure that you want that loan and you think you can obtain it.