Most people can’t save enough money to chase their dreams or make the biggest purchase of their lives- be it for college tuition, a car, or a house, let alone unplanned expenses, such as vacations.
You need not worry! You should never give up on your dreams just because you cannot save enough money. Although loans are not a popular choice for many, they can be useful when one needs them. However, make sure that you are familiar with the type of loan you should apply for.
In this article, we discuss six types of loans available in Canada and the United States that can help you with the necessary purchases, and, most importantly, we can help get you approved.
Many banks offer personal loans online as well as on Main Street. An individual can obtain a personal loan for several hundred to a few thousand dollars. You can use these funds to pay bills, buy a smart TV or even purchase a 4K 3D smart television. Since the loan is not secured, the borrower need not provide collateral. The payback terms are typically between two to five years.
A customer can use a credit card to purchase a product. It is the same thing as a personal loan. The interest on any outstanding balance will not be charged if the balance is paid in its entirety immediately. Interest will be charged monthly until all outstanding debt is paid.
Loans against home’s equity
You may be eligible to borrow money from your home equity, if you own your home and pay for some of your expenses. The equity in your home is what secures the loan. That is the portion of your home you own and not the bank. The loan can be up to 85 percent of your equity. It is typically paid in one lump sum over five to thirty-year periods.
Payday Loans Are Short-term Loans.
A payday loan is a short-term loan that lasts until your next paycheck arrives. These loans do not require you to have great credit. Although it may seem like a good idea at first, you will soon discover that additional fees are charged to many applicants. It traps them in debt obligations that could be far greater than what they originally borrowed.
Small Business Loans
There are many types of small company loans available, including working capital loans, term loans, and working capital loans. These loans can be used to finance small businesses, usually, those that employ less than 300 people. You can apply for loans to local businesses such as hair salons and restaurants, landscapers, family-owned grocers, and even sole proprietors such as freelancers with a traditional job. All applicants must be at least 18 years old.
Vehicle Title Loans
You may be eligible for a loan if you have a car. The amount you can borrow will typically be between 25 percent to 50 percent of the vehicle’s value. The Federal Trade Commission states that title loans typically range from $100 to $5500, and you will be required to repay your loan within 15 to 30 business days. There is a possibility that lenders may take the property away if you don’t comply. The annual percentage rates (APRs) for title loans are often in the triple digits. Once you are approved, your vehicle will need to be surrendered until you have repaid the entire amount, plus any interest or fees.
Before you borrow money, you should first create a budget. Find out more about credit counseling if you frequently experience financial problems. It will help you determine your monthly repayment capacity.