Whether you are thinking about opening your own business or you simply want to renovate your house, you will need money. And not to talk about all the possible college expenses if you are about to enroll. With all this in mind, loans are a pretty common thing, and chances are almost every person you know is invested in a type of loan especially with numerous options out there.
The college loans might be the most common ones and the hardest to repay but if you manage to do it your credit score is improved, and the bank is likely to give you another better one next time you need it. Still, not all needs are the same, and that is why loan types vary as well – some are just fast and quick cash loans, while other like the car loan is secured and you are at the risk of losing the vehicle if you don’t make regular payments.
With this in mind, let’s take a look at the most common types of loans and which one is the right for you!
The Types Of Loans
- Auto loans. Most of the people that are thinking about buying a new vehicle usually go for some of the financing options – the bank usually offers a low-interest rate, while the car dealerships might have somewhat higher conditions but may give you an option to pay the loan out in the long span of time (36 to 48 months). The most common car loan is the simple interest one – the rate is based on your current balance, so if you make the monthly payments somewhat higher, you will not have to pay the interest. Remember to make your monthly payments on a regular basis, as if you miss out and don’t act as stated in the deal your car might be taken away. On the other hand, lender loans are pretty common for car financing as well.
- Personal loans. Well this one is probably even more common than the car ones – and you don’t need collateral, you just need the proof of regular monthly income. These loans are usually needed to pay off another debt or buy certain household things.
- College loans. Now as college know to get expensive (the tuition, and other expenses) most of the students opt for the college loans. And though these are pretty common a lot of students stay paying off their debt even once they are done with the college years. So before applying for one do your research and see if there is some other lender option that might suit your case the best.
- Cash advances. These are offered by credit card companies and are usually a cash advance before you are to receive your payment in a few days.
- Hard money loans. Last but not least are the hard money loans – a lender option that is great if you are thinking about starting your own business (small or medium) or making residential and real estate investments. Most of the hard money lenders like Delancey street are there to fund your project up to 90% in a short span of time, and a great thing to that is that there are specific limits as of the loan.
The above-mentioned types are just some of the most common loans out there. Know your needs and think carefully before lending money or applying for a loan – if you know the monthly payments won’t be a problem then go ahead, and use it as an aid for your dreams come true idea!