If you are in need of money, getting a loan is a quick and legal way. Finding the right type of loan, however, may be a little more difficult. Take a look at the following loan types, and see which one would be right for you.
If you are a teenager, young adult, or mature-age student, you might qualify for a student loan. With college costs continuing to rise, financial assistance is a must. A student loan can help cover class fees and textbook costs, especially helping low-economic families. There are two types of student loans: Federal, and Private, with the former generally offering lower interest rates and more flexible repayment options.
A personal loan has a completely different set of criteria from a student loan. To begin with, the money from a personal loan can be used on anything, not just for school purposes. In order to obtain a personal loan, the success of the applicant will be based on their past credit history. One of the main benefits of this loan is that it is a good way to pay-off your other debts, leaving you with only one lower interest rate.
Small Business Loan
To help you establish your own business, consider getting a small business loan. There are a variety of options available, each depending on your specific needs. The funds can go towards obtaining licenses, renting a space to sell out of, or purchasing new stock, among other uses.
Not one of the most common loans, it is not uncommon for people to ask: ‘What is a payday loan?’ A payday loan, while tempting, can be tricky to manage. They are short-term and high-interest, helping you survive from paycheque to paycheque. It is not a recommended loan, as many who need to borrow then have trouble paying it back, and get into more financial trouble.
Much like a credit card, a consolidated loan is used to bring together all of your debts, and pay them off so you only have one bill. With more reasonable interest rates, they can help you get back on top of your finances and improve your credit rating.
Cash Advance Loan
A cash advance loan also uses a credit card, but in a different way. Where you would usually use your credit card to pay for goods or services, with a cash advance loan you withdraw cash money from your card. ‘Who would use this?’ you may ask. As strange as it may seem, there are still businesses that do not accept payment via card. By instead withdrawal cash, you are still using your card and its rates, but can use the money in more places.
Whichever loan you choose to apply for, it is important to do your research and carefully consider your options. Avoid high-interest loan risks, and look for ways to pay down your credit cards and debts as quickly as possible.