You might be wondering what kind of money lending is available? You can borrow money in many forms and agreement terms, but basically they are either secured loans or unsecured loans.
Examples of unsecured loans are personal loans and payday loans. Borrowers can also look to taking out a specified loan, such as a car loan, home improvement loan or debt consolidation loan. These loans are all borrowed on an unsecured basis.
Secured loans are only available to those that are homeowners, as the loan is secured against your home.
What is involved in money lending with a personal loan?
Personal loans are unsecured and can be used for whatever the borrower wishes. This is not the same as a specified loan, like that of a car loan which is specific for the purchase of a vehicle.
It is however borrowed on an unsecured basis. A personal loan can provide cash for an agreed amount and the amount paid back is clearly illustrated to show how much it will cost the customer per month and what interest is charged for the term of the loan.
What kind of money lending is a debt consolidation loan?
As the name suggests this type of money lending loan is for the consolidation of debts. By consolidating your debts into one very manageable payment per month, it allows you to better organise your finances and debts and to hopefully get a better rate so that it is cheaper and quicker to pay off.
With money lending what is the difference between a personal loan and a payday loan?
Both types of loans are unsecured, however, depending on your credit rating a payday loan may be a more suitable option.
If you have a good credit rating or if you require a large amount of money, a personal loan may be your best option.
Payday loans however are suitable if you require a small loan, for a short time or if you have a poor credit rating.
When Money Lenders are looking at lending what factors affect being accepted for a loan?
There are many things that will affect your chances of getting accepted for a loan.
Your credit rating is the most important influence when a lender looks at your application and whether they accept you for a loan.
If you have a poor credit rating your options may be limited and you are more likely to be turned down.
You must ensure that you are eligible for a loan and meet all the lenders requirements. This could be that you are 18 years and older, have a permanent address, have a regular minimum income and have a current bank account.