Discover the Different Types of Personal Loans You Can Apply For

 

Personal loans come in a variety of options, each with its own features, benefits, and drawbacks. So, if you're considering applying for a personal loan, it's important to know the different types of personal loans available in the market. 

In this blog, we'll explore the various types of personal loans, their features and benefits, and the scenarios when they are best applied.

Secured Personal Loans

Secured personal loans are backed up by collateral, such as your house, car, or any other asset. This means that if you can't repay the loan, the lender can seize your asset to offset the debt. 

Although these loans require collateral, they also offer lower interest rates and higher borrowing limits. Secured loans are best for individuals with assets that can be used as collateral and those seeking lower interest rates.

Unsecured Personal Loans

Unlike secured loans, unsecured personal loans don't require any collateral as security. These types of loans are based on your creditworthiness and your ability to repay the loan and typically come with higher interest rates since the lender takes on more risk. Unsecured loans are best for individuals without assets to use as collateral.

Debt Consolidation Loans

If you have numerous debts with high interest rates, a debt consolidation loan may be a great option for you. Debt consolidation loans consolidate your debts into one loan, with lower interest rates and preferable payment terms, making it easier to repay your debts. 

Debt consolidation loans are best for individuals facing numerous debts or high interest rates.

Lines of Credit Loans

Lines of credit loans are a form of revolving credit, similar to credit cards. You can draw from your line of credit as often as necessary, as long as you don't exceed your credit limit. 

With a line of credit loan, you only pay interest on the amount you've used, giving you more control over your finances. Lines of credit are best for individuals in need of a continuous source of funds, such as small business owners.

Payday Loans

Payday loans or cash advance loans are short-term loans with very high interest rates, meant to be repaid on your next payday. These loans are typically for individuals without sufficient savings and cannot rely on traditional lending institutions. 

Payday loans should be taken as a last resort due to the high interest rates that make it difficult to repay.

Final Thoughts

In conclusion, taking out a personal loan is a serious decision, and it's important to choose the right kind of loan that suits your particular circumstances. 

Whether you need funds for home renovation, debt consolidation, or a new business venture, it's essential that you evaluate your needs and budget to determine the type of personal loans you can apply for and those you are best suited for. 

Always remember to borrow only what you need and can repay, and work with trusted lenders like those at Foti Financial Services.

The Payday Loans Checklist

For many Americans, payday loans offer a vital lifeline for times when money is hard. A payday loan can provide a much-needed cash injection for any individual or family in need. If you are hit with an unexpected bill that you can’t pay, but you know that you will soon have wages or other income coming in, a payday loan is an ideal solution.

But before you take on any debt, you need to make sure that you’ve run through this 

checklist.

The Loan Criteria

Before you apply for any loan, you should ensure that you have read and understood all of the terms and conditions attached to it. You should never sign a contract without reading it as a general rule; it’s bad enough that we give big tech companies endless permissions to violate our privacy without thinking about it, but you can’t be so cavalier about the financial arrangements you enter into.

The loan criteria will be easily available on the website of the lender in question. It will set out the exact requirements for being granted a loan. Note that meeting the criteria does not guarantee that you will receive the loan; there will usually be additional credit checks.

Are Payday Loans Right for Your Situation?

Just because you need or want money in a hurry, that doesn’t necessarily mean that you should be looking at payday loans such as these from https://locations.friendlylender.ca/alberta/online-payday-loans-edmonton-no-credit-check. 

Equally, there are situations where a payday loan is a perfect solution, so it is essential to be able to tell which is which.

Payday loans are ideal for people who need a relatively minor cash injection to see them through until they receive an expected payment - usually their wages. They are not well suited for those who are seeking long term funding for a business venture, as payday loans need to be repaid as soon as possible.

Your Current Levels of Debt

You mustn’t take on more debt as a means of paying off a previous debt. This is completely unsustainable. The exception to this is if you are undertaking debt consolidation, whereby you take out a relatively large sum of money that you can pay off at a manageable rate, and use that to clear several smaller debts whose monthly payments together were costing you more.

If you are considering debt consolidation, you should talk it through with a qualified financial advisor beforehand to make sure that it’s definitely the right option for you.

ID & Documents

You will need to provide the payday lender with information about yourself, so that they can transfer the loan to you and, if necessary, chase you up for repayments. Most lenders will also want to carry out a credit check before they lend to you. If you don’t know your credit score, it is worth finding out. If you have a low credit score, there are still lenders who will be able to help you in most cases.

If you think that a payday loan can rescue you from a financial conundrum, make sure that you understand precisely what you’re getting into before you commit. For certain situations, payday loans are an absolute lifesaver. Just don’t take on debt that you can’t handle.

Read More:  Should You Apply for Installment Loans in Your 50's?

7 Reasons Why Payday Loans Are Ideal for Working Quinquagenarians with Poor Credit

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Finances can become a touchy subject for a quinquagenarian (a person between the ages of 50-59). By the time you've reached this age, in most cases, you're either comfortably wealthy to the point of already being an investor or entrepreneur, or you're like most others who are still in the position of needing to work to pay their bills. 

If you're in the latter group like the vast majority of the population, it can be easy to find yourself encountering financial jams as you get older due to compiling debts and obligations combined with increased forgetfulness. This is why you might want to get a payday loan.

Payday loans are sometimes criticized for their short-term repayment requirements and above average interest rates, but for many people, they can provide a means to fixing their finances in a hurry. 

They're particularly ideal for older citizens who don't want to create additional long-term debt commitments and only need a quick band-aid to turn around a minor financial predicament. Likewise, they can often be the only option for people with poor credit.

With that said, here are seven reasons why payday loans can be ideal for an employed quinquagenarian:

1. You Only Need Proof of Income to get a Payday Loan

Regardless of your age, if you have poor credit, you're going to find it difficult to obtain approval for any kind of financing other than a payday loan. Payday loan providers are able to offer loans without conducting any credit checks because they verify proof of employment before granting approval. 

Furthermore, when you get a payday loan, you'll be initiating a direct deposit agreement with your bank to automatically transfer the loan amount to the lender on a specified date – typically the date of your next paycheck. In this way, lenders are able to issue payday loans while only requiring proof of identity and proof of employment.

2. You Can Be Approved Quickly

Submitting an application for a conventional loan of any kind can leave you waiting for days to receive an approval or denial notice. Payday lenders can approve you on the spot and the money will be transferred to your bank account within 1-2 business days. If you visit a physical office location, you can walk out of the building the same day with your loan in hand.

3. Failure to Repay Generally Does Not Affect Your Credit

One of the biggest concerns when taking out a loan is that it might negatively affect your credit if you're unable to make payments on time. That's certainly a valid concern, especially if you already have a low credit score. 

While you should always make your best effort to make repayments as planned, failure to repay a payday loan usually won't affect your credit report or score in any way. There are cases in which a lender could sell your debt to a collection agency, which could then file a claim with one of the major credit reporting agencies, but in the vast majority of cases, this does not happen. 

However, keep in mind that failure to repay your payday loan will render you ineligible for future payday loans from the same lender or network, which is a significant consequence for someone who can't obtain approval for any other kind of loan.

4. The Terms and Fees Motivate You to Repay it Quickly

One of the dangers in creating any sort of debt is that you could wind up being burdened by repayments and taxed by interest and fees for years to come. While long-term loans will usually give you better interest rates, they'll also have you making repayments for many months. 

On the other hand, payday loans generally charge higher interest and fees for late payments, so you'll have all the incentive you need to get your debt squared away instead of putting it off with minimum repayments.

5. You Don't Even Have to Leave the House to Get the Money

Applying for a payday loan is a process that can be handled fully online. You may need to take a picture of your ID to submit along with your application. All of the information required by loan providers can be submitted on their website or via email. 

Once approved, the money can be transferred directly to your bank within a matter of 1-3 business days.

6. The Loan Amounts Are Doable

Borrowing ability can be just as much of a risk as it is an advantage when over-utilized. Since payday loans are given in modest amounts that range from $100 to $3,000, they keep you from over-extending yourself with a $5,000 to $10,000 personal loan. 

Plus, the recommended repayment and loan amounts are calculated based on your income, so you should have no problem paying them back with a bit of discipline. Furthermore, since the amounts are usually small, you give yourself a fighting chance of getting out of the hole even if you were to fall behind on payments.

7. They're Enough to Cover Most Household Bills

If you're struggling to pay your bills on time and are looking for fast relief, payday loans are an ideal option because they're usually enough to cover essential living expenses like rent, utilities, internet, phone, gas, and food. 

If you have a part-time job that doesn't pay much, you might have a hard time getting approved for a higher amount that will make the loan worthwhile. As such, these loans are usually better for people who are employed full-time.

Try to Avoid an Income-Reducing Debt Cycle

Although all of the above points are definitely valid reasons why quinquagenarians can benefit from payday loans, there's also a downside in that your next upcoming paycheck will be less than usual due to the interest and fees. 

Since most payday lenders will offer to immediately renew the loan, that's often the best option for making sure you still have spending money left on payday. However, it may be better to practice restraint and refrain from renewing the loan repeatedly, as you could get into a cycle that has you losing a significant percentage of your income to interest.

Want to Get A Loan with Bad Credit? Here are 3 Simple Steps!

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So you have taken a number of loans in the past years in order to manage all those daily expenses and pay off those huge medical bills and utility bills. With such credit crunch and price hikes, it becomes next to impossible to manage all the expenses; and after that, there are always emergencies for which you need to arrange the money somehow. In a situation like this, taking loans is the only solution. Since getting traditional credits from banks or other sources becomes a little difficult as it involves a huge time and the process, too, is time consuming, it is preferable to opt for loans with bad credits from personal lenders. If you are not too sure how to get a loan with a bad credit, here are some simple tips - 

• Apply to Credit Unions - Credit unions are similar in nature to banks but these are owned by people who have something in common, like they must be working in the same industry or they should live in the same geographical location. These are non-profit organizations that pass along its earnings to the members in form of higher customer service and lower fees. Research online a bit to find the credit unions in your locality and give them a call to discuss if you can get a personal finance. Make sure you compare the loans from a number of different institutions in order to ensure that you are getting the best possible loan, with lowest possible interest rates.
• Use a home equity credit - If you have a home or a similar property like that, which can be kept as collateral, you can use that in order to get the loan. Well, it is of course a bit dangerous to keep your house as collateral since it will be seized by the lender, if you fail to pay off the debt in a timely manner. But then if you have a reliable source of steady income, and if you are disciplined enough to pay down an equity line thoroughly, it is really a cheap option to consider.
• Try to get a peer to peer finance – If you can't manage a credit from the sources, mentioned above, you can try to get a credit of considerable amount from this platform. This is a means of getting cheap bad credit loans from a particular individual directly instead of an institution.

Are Short Term Loans Right For You?

During the present economic condition, it becomes often very difficult to meet up all your needs with the regular income. After all, you have to pay off all those medical bills, utility bills and education bills. Moreover, emergencies are always there and you have to arrange the money somehow. In situations like these, applying for traditional credits from banks or other financial organizations, doesn’t seem to be very feasible as the process is a bit time consuming and involves lots of formalities as well. 


As an alternative to these types of conventional loans, short term credits or cash advance loans happen to be popular options. Since you don’t need to provide a huge number of documents and the process, too, is completed within a short period of time, these financial alternatives seem to be popular way outs among people. Moreover, you can get approved for these credits even if your financial history is not-so-fair and if you have a bad credit score. However, while applying for such types of loans, you need to keep certain factors in mind –

· Do you really need the money? – The fact that there are plenty of financial alternatives available in the market and you can easily get approved for them nowhere means that you can apply for one every now and then. In fact, taking too much loans and then being unable to repay them within the given time will affect your credit status and gradually will lead you to a poor credit score. Hence, make sure you need the money desperately and then, apply for these loans. For example, if you want to go on a vacation, but can’t plan it due to lack of money, don’t apply for a short term loan. Remember, these credits should be applied for only for unexpected expenses that you have to pay off.

· Try to cut down the borrowing as much as possible – Make it a point to borrow as less as possible amount of money. This is important because these types of credits always involve high rates of interest and the more amounts you borrow, the greater amount of money you would have to pay to the lender.

· Shop around a bit before taking the loan from someone – These types of credits are available both online as well as with unconventional sources like personal lenders. You can even ask friends, family or someone from your acquaintances if they can lend you the money for a short period of time, probably till when you receive your next paycheck. While shopping online, check out the different sites – compare the rates of interest and other charges like application fees or processing fees. Check out if the lenders ask for an early repayment charges. Considering all these factors, choose the deal that suits your need best.

· Go through the Terms of Service carefully – Well, this is quite an obvious task before signing any kind of deal. But being in a hurry, you may miss out something very crucial. Make sure you understand all the terms and clauses perfectly before signing the agreement.

Author’s Bio – Sam Payn is a well known blogger who has been associated with guest blogging for a number of years. He specializes in writing on topics related to finance, loan, insurance etc.

Scared of Loans? 4 Reasons You Shouldn't Be

While borrowing money is something that we’re all taught to avoid if possible, there are times when talking to a reputable lender is something that can actually provide some sort of benefit. Loans aren’t something to be scared of all the time. In fact, they’re there to help you accomplish goals and get through crises in a stress-free manner. Here are some reasons why you should be comfortable borrowing money in certain situations that may arise later on. 

Aid When Buying a Home

As one of the biggest purchases anyone of us will make, property is something that basically no one can save up for. This means that a mortgage is the only way forward, giving us the finances that we need for the massive amount of money required. If you choose a loan with an affordable interest rate, you can then buy a place to live in that will also appreciate in value over time. Once you’re finished paying everything back as required by your lender, you’ll have increased your assets and can earn extra cash by selling your home in the future.

Support in an Emergency

There are times when life throws something in your face that you’re simply not prepared for. Whether you end up in hospital or your automobile is damaged, you’ll need some extra cash to get yourself back to normal. Here, talking to a lender such as www.creditnoble.co.uk is a smart idea as they can give you the cash you require to sort out your issues in a flash. In this case, only borrow enough to cover these emergency costs and make sure you can handle the repayments later on. Just because you’re in a crisis doesn’t mean you have to be desperate and thoughtless.

Assistance with Education

There’s a saying that money spent on self-improvement is a worthwhile investment. If you don’t have enough cash to put towards a degree or certificate, borrowing money can be a smart idea. While you’ll have to cover repayments during study, you’ll end up more employable as a result. This means that the interest you end up paying on your loan will then be returned to you in the form of a higher income once you graduate. Taking out some credit is a great way to develop your skills and knowledge if you don’t have the money required for the course you’re interested in.

Help with Home Renovations

Lastly, you might want to improve your living environment by knocking down a wall or building an outdoor swimming pool. Projects such as this are quite expensive but can be worthwhile as they increase the value of your home. This is why borrowing money is a great idea yet again as the interest you have to pay should hopefully be covered by the additional money you get once you sell your property later on. Not only that, but your home improvement loan will also give you the chance to enjoy a comfortable, attractive domestic setting in the years before you sell as well!

About the Author Creditnoble is a marketing company in the United Kingdom that specialises in financial products and services such as instant loans. Visit their website at www.creditnoble.co.uk for more details.