So, you are in need of some cash. Your family members, friends, neighbors, even your golfing buddy are all tapped out. Trouble is, your car payment is due in 3 days and you can’t be late. That Pontiac Solstice sitting in your drive is a great ride, a chick magnet, and more precious to you then food. Okay, a bit of an exaggeration, but you get my point: you need money and you need it now! Personal loans abound and they are one solution to a crisis situation. Is a personal loan right for you? More importantly: exactly what are your options? Read on and I’ll show you the way!
Payday Loans: Payday loans have gotten a lot of press over the past few years as they are a great way to secure personal loans quickly and easily. However, fees and interest rates are high so if you aren’t planning to pay it off within a few days you’ll end up paying extra charges.
Cash Advances: Credit Cards are another way for you to secure a personal loan. By drawing on your card’s cash advance feature, you can borrow a few hundred to a few thousand dollars without seeing a loan officer. You’ll pay a fee for the privilege and the interest rate on a cash advance is quite high. However, if you can pay the loan off quickly it could be a viable personal loan alternative for you.
Equity Loans: If you own a home, your house may have some equity in it. Some lending institutions are so eager to lend money to you that they’ll approve a loan on the spot. Be careful: the rate could be high and you are putting your house on the line. That Pontiac Solstice convertible may not be worth that sort of aggravation!
Friends, Family Members: Ah, now for a test of your familial relationships. Ask Mom, Dad, Gramps, Aunt Bea, or Sis for the funds. That cold hard stare back from them probably means “no” but it could mean yes if you whimper. Groveling could help too. Seriously, a family loan could mean a low or zero interest rate for you. Better than the rate the loan shark guy at work wanted to charge you, right?
Retirement Funds: More than likely you won’t be able to tap your retirement funds within three days time, but borrowing from your 401(K) can be a wise decision. Just remember to pay the loan back with interest to avoid tax penalties. Besides, that Pontiac Solstice will look pretty ratty when it comes time to bid your work place good-bye.
Yes, you do have choices when it comes time to securing a personal loan. Some options are better than others so it behooves you to check the fine print when seeking personal loans. Personal loans can be a good option for you for the short term, but likely a long term solution could involve you getting rid of that pricey Pontiac Solstice!
By: Matthew Keegan
Posts Tagged ‘Payday Loans’
Personal Loans: Where To Find Them
June 17th, 2010Guaranteed Bad Credit Personal Loans – A Good Or Bad Choice?
June 6th, 2010
You may be thinking of applying for a guaranteed personal loan but, because of bad credit, you may be concerned if getting one is your best option. You are right to be concerned and asking this question has already put you on the road to making the right decision.
It’s a fact that those with bad credit are often the ones who are in most need of a fast cash advance to pay for an unexpected financial crisis – whether it’s someone in your family requiring hospitalization, outstanding credit card commitments, urgent household repairs or just getting your car repaired so you can get to work; the list of life’s unexpected emergencies is limitless.
You may already be aware of the many online lenders who offer guaranteed personal loans for people with bad credit and are probably wondering if you should apply. Before you do apply you should weigh up the pros and cons of such a loan. First let’s consider the negative points.
These types of loans are often referred to as payday loans. These loans usually involve modest amounts – usually a maximum of $1,500. If you require more, some lenders may be inclined to lend you more, but you should be aware that the interest charged on these loans can be higher than a normal loan – especially if you are applying for an unsecured loan.
You may get approval and the money quickly but you’re also expected to pay it back next pay day. Therefore, you really need to be sure that you can afford the loan repayment along with your existing financial outgoings – you don’t want to be applying for another payday loan to pay back a payday loan.
Finally, you must remember that failure to pay back the loan on time will further degrade your already poor credit standing.
Okay, so what are the positive aspects of such a loan? Well, there are quite a few actually.
First, these loans require no credit check in order to be approved – sweet music to the ears of those with less than perfect credit history. Collateral is also not usually required and neither is a cosigner.
If you apply online, the application can be done in a matter of a few minutes and once completed the decision is made almost instantly. Furthermore, the money is wired direct to your bank account by the next business day.
You can apply for the loan for any purpose; you are free to spend the money on whatever you like.
The above are the more obvious plus points and you may be already familiar with them. However, there are other positives you may not be aware of.
Believe it or not, this type of loan can actually improve your credit score. When you pay back the loan, your credit report will reflect that you have been a good borrower and your rating will improve. If you borrow again and pay the loan back on time, you credit score will be further improved.
Another thing to remember: although the loan amounts are usually small – especially with an unsecured loan – each subsequent loan (from the same borrower) is usually looked on more favorably. This means that there is the potential to borrow more from subsequent applications – after all, you’ve proved yourself to be a reliable borrower.
The decision to borrow money shouldn’t be taken lightly. I hope the above points have helped you in making the right choice in whether or not to apply for a guaranteed bad credit personal loan.
By: Robin Cassidy