There are times in life that suddenly we need a lot of money quick, like payday. However, we always don’t have paydays as we have to work first and then get paid on the date when the company promises to pay. The sad part is that, what if you really need the money for emergency purposes. That is when you need to loan. However, where and how can you loan faster without hassle and cannot give you any big compromise on your part?
If you’re in a lot of mess and need money, getting loan from a friend might not be a good idea. You’ll get awkward (well, I would). Constraints rise especially if you get loan from your family. You can loans from bank and from other lending companies out there. But you’re going to have to wait longer. Loans from banks and other lending companies need you to pass almost their entire requirement first. You may also fail their background check. Another down side of having a loan on banks and lending companies is that, some requires you to pay upfront. Some also has so much interest fee and you might end up broken in the future. That can be worrisome and can get you in so much trouble in the future that you can’t handle.
Before jumping into the loan bandwagon, you should first identify which loan do you really need or do you really need to loan. Whereas if you are in deep need of money, choose wisely what type of loan do you need.
Here are some types of loan that might shed some light for you:
- Secured – this type of loan requires you to have collateral as most loans are. This protects and lending company in case you didn’t pay your due in time. In both sides however, this can be good side because you will be obliged to pay the debt if you don’t want them to get the collateral. The bank will also trust you if you’re going to loan so much from them.
- Unsecured – this type of loan doesn’t require you to guarantee any assets. However since this is unsecured on both parties, the interest rate may be too much to pay in the future.
- Quick loans or Payday Loans – this type of loan can be the borrower friendly of all loans since the requirements are unlike those of secured and unsecured. But like most kinds of loans, you need to have a job in order to pay for the dues in the future. Age requirement is needed, in most countries 18 above will eligible for a loan if and only if they have a means to pay for it.
Understanding what type of loan can be informative to have a better one and not get you in so much trouble in the future. Remember to borrow only what you need and what you can pay for. Emergencies come and go. But being in deep hole of debt can’t get you anywhere near home.