Loans are a savior when you need some ready cash, but you don’t have any. It is a real boon to be able to borrow money when you want and repay it when you can. Only if it were that simple, half of our problems would be solved. Loans differ in nature, and there are basically eight types. Let’s read about them –
Secured Personal Loans
In a secured personal loan, you get the money only when you are offering a property as collateral. The property you submitted acts as security. That’s where this loan gets its name from, and it has comparatively lower rates of interest. However, you must only go for secured personal loans with a trustworthy financial site like Realfinans, to make sure your property is safe at all times.
Unsecured Personal Loans
Unsecured personal loans don’t require you to deposit a security property. They are just basic personal loans you can get to pay off some substantial purchases. These types of loans are usually suitable for people with good credit scores or high budgets or frequent significant expenses.
Title loans are basically a quick borrow of money for people who own expensive property. They get a certain percentage of the cost of the property as a loan, but their property is confiscated until they repay the loan.
Home Equity Loans
Home equity loans, as the name suggests, is a type of loan you get after putting your home up as collateral. However, your borrowing limit is decided by the equity you have in your home. Home equity loans are actually better than unsecured personal loans, but you always need to be proactive, or your bank might foreclose on your home, and you might turn homeless.
A payday loan is when you take a loan, and it is due on the day you get paid again. These loans are for a shorter period of time, and that’s why they are slightly high cost. However, they are the best option for those times when you are in urgent need of an amount of money that is equal to or lesser than your salary.
Pawn Shop Loans
Pawn Shop loans are self-explanatory. All you have to do is take an item of value, like an antique or an electronic, to a pawn shop and get a loan in exchange for it. You are allowed to take your item back only when you repay the loan.
Credit Card Cash Advances
A credit card cash advance is basically a short term loan that you can take based on the available balance of your card. This loan can only be taken by a person that has a credit card.
Payday Alternative Loans
A payday alternative loan is just like a payday loan, except it’s more relaxed. The amount you can borrow has more range, and you get from one to six months to repay your loan.