Nowadays there are a lot of loan options available, which makes it difficult to differentiate between them. Sometimes you may face a dilemma which one to choose, however, all loan types have their advantages and disadvantages and are aimed at being used for certain situations. Here you will find out which credit options are the most popular and why. In order to be able to choose the best deal, you should be well-informed. That’s why you are offered to learn more about the distinctive features of the most common loan options.
Personal Loans: When to Choose Loans Tailored to Your Personal Needs?
Personal loans are considered really popular nowadays as they are offered with a range of benefits. Getting a personal loan online you can apply for different amount of money, which varies from several hundreds to several thousand dollars. How much you can get depends on how much you earn and how stable your income is at the current moment. Personal loan lender will ask you to provide some proof of regular payments that you get on the monthly basis. This is obligatory as most personal loans are unsecured https://www.debt.org/credit/loans/personal/.
Personal loans can be repaid within rather long period of time. You can make loan repayments during 24 or 36 months. Sure that some points offered may vary from lender to lender, however, the major features remain the same.
Advantages of Online Personal Loans
If you are considering personal loan as the way to get the necessary amount of money quickly, you should be aware of benefits offered by personal lenders. Check out the list of the most important advantages, which you can get if give preference to this type of a loan tailored to your personal needs and wants:
- Simple application form to fill out with the basic information;
- Almost instant loan decision available within minutes;
- Up to several thousand dollars deposited into your bank account immediately;
- Flexible repayment term that can be chosen by you taking into account your financial situation;
- Individual borrowing that is tailored to your personal financial plans;
- Absence of security, which means that you will be approved without the need to provide your lender with anything of value.
Things to Keep in Mind if You Are Going to Borrow a Personal Loan
Personal loans are versatile as they can be applied for either you need to pay some bill or would like to invest in some larger project. APR for this loan type is usually from 2.7 up to 3.5%. If you repay your loan earlier, you won’t overpay much, however, even if you pay in fixed parts during 30 or 60 months, a personal loan is worth a try. Moreover, there are bad credit personal loans online as well. This means that even you have low credit rating you have great chances to be approved. The key difference between good and bad credit borrowers is the cost of personal loans. The better your credit score is, the lower interest rate you will have to pay back together with the amount borrowed. Take this into account when applying for a personal loan online as in case your credit score is very poor, you may face a need to pay APR up to 36%.
Payday Loans Online: Everything You Should Know About Fast Money till Your Payday
Payday loans are well-known nowadays thanks to a range of pros offered by loan lenders. Loans till your payday are intended to be used for really urgent financial problems that can’t wait till you are paid. It is recommended to use this loan option only if you don’t have any other source of money as such loans are the most expensive. Payday loan or payday advance is intended to be used for a week or two till the day when you get your monthly salary. Depending on your income, you will be able to be approved for an amount of loan up to $1500. The amount of short-term loans online isn’t that large as the repayment period isn’t long.
Responsible payday lenders warn their customers that the interest rate is rather high, which is why only borrowers with a stable source of income are going to be approved. You are guaranteed to get a payday loan in case you can provide your lender with an evidence of having an opportunity to pay money back. As well as the previous type of loan, payday advance is an unsecured loan.
Advantages of Getting a Payday Loan Online
When you are going to get a short-term loan till your payday, you should weigh all pros and cons. Check out which benefits to expect if you choose a payday advance as a source of extra money:
- An easy and convenient way to apply for a loan via internet;
- A fast application process that takes 3-5 minutes only;
- Instant loan decision after you have submitted an application form;
- From $100 to $1500 for any expenditures you have;
- An opportunity to apply for a payday loan with a low credit score;
- Payday loans are deposited directly into your account the same day.
Payday loan is a great problem solution if you need to deal with emergency requiring instant reaction. You can apply for a loan whenever you are using any gadget with an internet connection, which is very comfortable when you need to solve urgent financial problems. Your loan will be deposited into your bank account within one business day, which is very convenient as you can save both time and energy.
Do Payday Loans Online Have Any Cons?
If you have considered all benefits, you may think that internet loans are perfect. However, everything has both positive and negative side. Let’s consider possible cons of online payday loans. First of all, you are recommended to calculate the cost of this loan as it has the high annual percentage rate, which is up to %350. Taking into account that payday loan is a short-term loan, you won’t overpay too much if repay the borrowed amount of money within one or two weeks. Many borrowers think that this repayment period will be enough for them and overestimate their opportunities, which lead to the need to use roll over option. You should keep in mind that it is not desirable to extend a payday loan as you may fall into debts paying much larger amount of money than you have borrowed even.
There is a risk borrowing money from the dishonest lender as nowadays a lot of direct lenders and mediators. This is why it is very important to know how to differentiate between them. You should know all your rights as a customer.
Being not the cheapest problem solution, payday loan has a short period of repayment, which can be considered a disadvantage. That’s why you should consider your financial situation and think twice before you apply for a loan with the short repayment term.
Credit Cards: How to Use It Not to Fall in Debt?
Today everyone is familiar with the use of credit cards as they are accepted almost everywhere. This is a convenient way of paying for both goods and services. Most credit cards are offered with the minimum credit available, which you can use or not use if you don’t need extra money. However, each one has some situation when he needs additional money. That’s why it is a great temptation to have extra money and not use it when you want to buy something https://www.consumer.ftc.gov/articles/0332-credit-debit-and-charge-cards.
The credit limit can be increased depending on how often a customer uses credit money and how responsible he is repaying credit on the due date.
Advantages of Credit Cards
Using credit cards, you can benefit from the following options:
- Easy to use as all merchants accept credit cards as a payment option;
- Simple application to fill out to receive a credit card;
- Credit cards have flexible repayment terms.
It is not difficult to become a holder of a credit card. Moreover, it is very convenient to use it always when you need to pay for something. The only disadvantage is that some banks have high interest rates. If you know that you won’t be able to resist spending money you have on your card, you’d better avoid applying for bank credit cards as there is a risk of racking up debts.
Business Loans: How Helpful Are Business Loans?
Ambitious young people who want to become entrepreneurs usually use such an option as a business loan. What is it and how it works? Here the requirements of getting such financial help may vary from lender to lender. You will be able to apply for the amount of loan ranging from several thousand to several million dollars. As for the repayment terms, they may be different and should be agreed with your lender.
Business loans are secured loans. Most often lending institutions ask to provide them with some collateral if your business fails. This must be taken into account when you are going to get a loan. Are you ready to risk your property? If yes, then a business loan may be a helpful option to choose if you have a good business plan but lack money to realize your ideas. There are also small loans for business, which are quick and unsecured.
Benefits to Enjoy If Get a Business Loan
As any other type of financial help, a business loan has its pros:
- Secured/unsecured loans are available depending on how much you want to borrow;
- Flexible repayment terms;
- Large amount of money up to several millions;
- A good way to start a new business or support an existing enterprise.
The only drawback of such loans is that you may borrow a large amount of money and risk losing everything if suddenly it turns out that your business plan doesn’t work as you expected.
Weigh all pros and cons and think twice before getting a loan for running business if you aren’t sure that it is going to be profitable.
Auto Title Loan: How does Car Loan Work?
Auto loans can’t be used by everybody. This type of loan has been designed for those who have some vehicles and especially cars that can be used as a collateral. On the one hand, such loans are a good way to get the necessary amount of money exactly when you need it avoiding any time-consuming procedures like paperwork and faxing, credit checks and other unnecessary procedures. Here you apply for the loan and get instant approval if you can offer your vehicle as a collateral. Car loans refer to secured loans, which means that in case a customer fails to pay money back, the lender has the right to take his vehicle as the loan repayment.
As for the amount of money that can be obtained it is going to be equal to the value of your auto. You won’t be able to get more money than the real cost of your vehicle. That’s why the amount of auto loan can vary much.
Which Advantages Can Car Title Loan Lenders Offer You?
As for the benefits, it has both positive and negative sides, which you can check out below:
- An opportunity to get much money as quickly as possible;
- A possibility to apply for a car loan online;
- A chance to enjoy a simple process of loan application, which takes minutes.
Are these all benefits you will get if choose a car title loan? Perhaps, yes. Now let’s look at the disadvantages of this type of a loan.
Things to Keep in Mind Getting an Auto Loan Online
If you have decided to apply for an auto loan via the internet, you should find a trustworthy lender as there are many scams nowadays. First thing you should keep in mind is that you risk losing your property in case you don’t pay the loan back on the due date, which is going to be mentioned in the loan agreement. That’s why you should consider your situation and apply for a car loan in two cases: either you are 100% sure that your income is stable enough and you will be able to make all repayments on time or you realize the possible risk and want to give it a try.
In any case, you should know that car loans aren’t the cheapest among other types of credits. The APR here can be up to 300%. The average cost of car loan is plus 25% monthly https://www.consumer.ftc.gov/articles/0514-car-title-loans#applying.
This means that you should apply for this loan only if you can’t use any other option available and think that it is a good way to find the necessary amount of money quickly.