Through our lives, we are faced with multitudes of financial problems that we pay for with our savings, credit cards, credit accounts, loans, and even by borrowing from friends. When financial problems arise that we can’t pay for right now, the first thing we think about are loans. Then, we wonder: how much can I get a loan for? Will it be enough to cover the expenses I have?
Before you consider taking out a loan to cover a financial dilemma, the first thing you should do is figure out what kind of options you have, and what kind of loans there are.
There are many types of loans on the market, usually categorized as secured or unsecured loans. Unsecured loans are the typical loans that you think of: student loans, personal loans, business loans. These are based off of your credit history and your current income. The worse your credit is, the smaller amount or larger interest rate you’ll receive. A secured loan uses an item as collateral in order to determine the rate of the loan. That means if you fail to pay that loan, they’ll take whatever it is you use as collateral.
Unsecured loans will always acquire interest, unless you get lucky and somehow avoid it. Even when we take out car loans and mortgage loans, we acquire interest. A fixed rate loan means that the interest does not change over the time length of the loan.
This type of loan allows you to budget for the future since you know it will always be the same rate. The downside to this loan is that the fixed rate may be higher than the other option because the bank makes up for the interest that would fluctuate over time. In the end, you will probably pay lower towards the end of the loan length compared to the other loan option.
The other option you have with unsecured loans is the variable interest rate. This means that your rate will change over time as the interest market changes. So, if rates go up universally, that means your rate can go up and your payments go up. This makes it a little harder to plan ahead for the next few years of your loan.
People usually see a positive in the beginning for a variable rate loan because it’s the lowest option at the start of the loan. But, your loan rate is bound to change at some point through the length of the loan, which means your payments could be rather high in the time of the loan.
A secure car loan has no need for a credit check. Instead, car title loans use the equity value of your car and the ability to pay off the loan to determine how much money you’ll get for your loan. They use your car’s title as collateral for the loan, so you get to keep your car throughout the life of the loan. With these types of loans, you can get anywhere from $2,500 to $50,000.
Personal loans are one of the many ways people try to get loans to consolidate other debts or try and pay for some sort of personal expense. While these naturally have lower interest rates, that’s only if you have great or excellent credit. Most of these places won’t let you take out a loan unless you have a score of 660 or more. With a score of 660, they may even make you find a cosigner with a better score. They also determine your income versus what you’re asking and how much the payments will be.
With TFC Title Loans, we offer our customers Car Title Loans with amazing benefits. With loan terms ranging from 24 to 36 months, we can get you the funds you need in as little as one business day. All you have to do is fill out our online application and submit a couple documents. All it takes is 5 minutes for your application and a representative will contact you about your documents. We have high approval rates for all our customers. All you need is a clear-and-free title on your vehicle and ability to pay back the loan. What have you got to lose? Submit your application for free and get a quote today!