If you're in a cash flow crunch, or need extra cash to pay for a car, home or even to start a business venture, chances are good that your best option will be taking a loan. Even for people with bad credit, there are options for borrowing money. Read on for tips on home and auto loans, and information about payday loans.
A home equity loan is usually money from the bank borrowed against the value of your home for major investments like home repairs, medical costs or college tuition. This type of loan, like a lien against the home, ensures that the bank can recover their lendings through either sale or ownership of your home. Home loans are not to be taken lightly, especially when you are intending to boost the value of your home with construction, because a home loan can actually devalue your home for the duration of the loan period. Ask your bank about a home equity or construction loan and the options that will be best for you.
So you've found the car of your dreams – and it fits your lifestyle, but not your budget. Now what? If you need money to get a car, you will likely want to consider your options for auto loans. Auto loans are similar to home loans in that you can ask your bank to help you finance its cost with a home equity loan. However, most auto loans come through car dealerships, rather than banks because cars lose value quickly and it's more difficult for banks to resell cars.
Pay day loans are typically short term loans for under $500, based on your upcoming pay. Payday loan centers like MoneyMart usually put two week terms on the cash loan, which is the typical period between pay periods. These short term cash loans are often used to pay rent, bills or pay for unforeseen expenses – mostly payday loans are not intended for large amounts like mortgage payments. The repayment terms on payday loans are high interest, so be sure that you can pay it off on the terms you agreed to.
In all, taking a loan is risky business unless you're prepared to pay back every cent on time. Before you take out a home or auto loan, consider carefully the amount of the loan, the length of time you have to pay it back, and the interest rate you will pay.