What money types of loans are available? There are many types of loans available on the market for consumers to choose from that will best meet a persons needs.
These loans can be available on both a secured and unsecured basis. With an unsecured loan it can be in the form of a personal loan or say a payday loan.
Borrowers can also have access to car loans, home improvement loans and debt consolidation loans, to name a few money types.
What money types are personal loans?
Personal loans are typically on an unsecured basis. With a personal loan you will be able to use the money for whatever you deem important.
This is not the same as say that of a car loan that is specifically for the purchase of a vehicle.
A personal loan offers money to its user at an agreed amount with the lender. The amount paid back is clearly illustrated and shows how much it will cost the customer per month and what interest is charged for the term of the loan.
What money type is a debt consolidation loan?
As the name suggests, this type of loan enables the borrower to consolidate their debts. By consolidating debts, it can make it possible for the individual to make just one very manageable payment per month and help to organise debts better.
With this type of loan, it may also be possible to get a better rate than what they are paying already and so make it cheaper and quicker to pay off the money owed.
Personal loans and payday loans, what is the difference between these money types of loans?
Both types of loans are unsecured, however, depending on your credit rating one may be more suitable than the other to apply for.
If you have a good credit rating or if you require a large amount of money a personal loan may be your best choice.
If you require a small loan for a short period of time or if you have a poor credit rating a payday loan may be better.
What factors affect the ability to be accepted for any money types of loans?
There are many things that will affect an applicants chance of being accepted for a loan.
Your credit rating is the most important factor when a lender looks at your application and whether to accept you for the loan.
If you have a poor credit rating your options may be limited, however, there may still be lenders on the market that can help.
You must also meet all the lenders criteria to be accepted. This could be that applicants are 18 years and older, that you have a permanent address, minimum earnings and that you have a bank account.