9 Different Types of Loans You Might Not Know About

Money makes the world go round. Right?

Well, having cash when you need it at least helps make life much easier.

Unfortunately, you might find yourself running low on funds when you need them most. Those are the times when you need a little help.

This article can help. Here we take a look at several types of loans that you might not be aware of. The key is to understand your needs and then choose a type of loan that will be the perfect match.

Keep reading to learn about financial resources that can help you out of a tight spot.

  1. Title Loans

Let’s start with a type of loan that is quick and easy to get, requires very little paperwork, and you don’t have to worry about having perfect credit.

Title loans are a type of secured loan where the borrower provides their car title (or boat, or SUV, etc) as collateral against the loan amount. This means that if the loan isn’t paid back on time, they will forfeit the collateral.

In most cases, you can borrow between 25% to 50% of the value of the car and will need to repay the borrowed amount within 30 days of accepting the loan.

Just keep in mind that the fees involved in title loads are typically pretty steep.

  1. Payday Loans

This is a short-term type of loan that is intended to help the borrower get the money they need to survive until their next paycheck.

The major benefit of a payday loan is the fact that you don’t need good credit, but this also means you’ll be required to pay a high-interest rate. This type of loan might be able to help you out in a crunch, but it might not be worth the price you pay once you receive your paycheck.

  1. Credit Card Cash Advance

One of the easiest ways to get emergency money is by taking out a cash advance on your credit cards. Keep in mind that most credit cards allow you to take out a cash advance based on the amount of available credit on each individual card.

There’s no application required, thus you won’t have to worry about getting approved, and you can typically get the cash you need at any ATM.

But it’s important to note that you must repay the cash advance by the end of the next billing period or face high interest and fees.

  1. Home Equity Loans

Do you own your home? If so, you could take out a home loan against the equity in your house.

There are different types of mortgage loans, and each one comes with advantages and disadvantages in regard to home equity loans. That’s why you should schedule an appointment with the lender who holds your mortgage to discuss possible home equity loan options.

  1. Travel Loans

Believe it or not, you can also take out a loan for vacation. This means you don’t have to wait until you’ve saved enough cash to take you and your family on a much-needed road trip to your favorite destination.

This is a great option for families needing a break but unable to justify the expense. After all, if you’re like most people, every dollar matters, and many people live paycheck to paycheck.

But it’s important to experience the world while your kids are young and everyone is healthy. Thus you should plan a trip, create a travel budget for an experience every member of the family will enjoy, and then apply for a loan that meets your financial needs.

Here’s a great resource where you can learn about applying for a Plenti Travel Loan.

  1. Small Business Loans

Have you been thinking about starting a small business but don’t know if you can afford it? Small business loans are designed to help entrepreneurs get their businesses off the ground and provide the support they need for success.

The key is to create a business plan that outlines every aspect of your business, then use this business plan to attract investors. These investors could include anyone from traditional lending institutions to private angel investors.

This type of loan is available to businesses of just about any size who need the capital required to rent property, invest in inventory, hire quality employees, and develop an effective marketing strategy.

  1. Student Loans

It’s no secret that higher education can be extremely expensive. This is especially important to understand when you come from a background where you have limited financial support from your family.

Fortunately, student loans enable just about anyone to pursue higher education, regardless of age, nationality, race, or financial need. Thus you’re able to get the money you need to create a bright future for yourself.

Best of all, most types of student loans are set up to be paid back over decades so that you can focus on starting a career and establishing a solid foundation for a healthy financial life.

  1. Personal Loans

When it comes to choosing different types of loans to meet your financial needs, applying for a personal loan is a great way to make it through a tight spot. 

These are loans you can use for anything without specifying how the money will be spent. Keep in mind that you’ll need to be able to repay the loan on time to avoid interest charges and expensive fees.

  1. Pawn Shop Loans

You can also get fast cash with pawn loans. This process involves pawning an item for the cash you need with needing to apply for a loan, and you’ll typically have 30 days to repay the loan or risk forfeiting your collateral. 

Types of Loans Everyone Should Know About

When you don’t have the money you need for things like school or travel, it’s time to look to lenders to help you bridge the gap. Fortunately, this guide to types of loans you might not know about can help make your life a little less stressful.

Please continue exploring the content on this blog to discover more articles filled with cool lifestyle tips and advice.

 

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