Different Types of Credit
Run out of cash? Need to borrow a certain amount of money? There are plenty of options to choose from: either a payday loan, cash advance, an installment loan, a business one, a debt consolidation one or a personal loan. Here is a brief description of the most common types of loans you can apply for if you fall short of cash.
Payday loans are the loans which are designed to cater to your urgent short-term financial difficulties. They are unsecured ones. What makes them different from other types of credit is that a lender does not perform any credit check and makes a decision to issue a loan in accordance with the state law and on the basis of the information you have submitted. If you run out of cash and urgently need a certain amount of money, this type of credit will be the most suitable one. Payday Available strongly recommends to avoid late payments and apply for this type of unsecured loan to satisfy your short-term financial needs. The maximum amount you can apply for varies from state to state and can usually make about $1,000.
Installment loans are designed for more specific needs and are meant to be repaid in equal installments over a term specified in the loan agreement. Such types of loans may be both secured or unsecured. Secured ones have to be protected by some sort of collateral or an asset, for instance, a car or a home, while unsecured loans are applied for when you have credit troubles or bills you are unable to pay. Installment loans are generally provided with fixed interest rates and are considered a good solution to such financial problems as debt consolidation or home improvements. This credit type is gaining more and more popularity these days. The maximum credit amount usually makes $5,000 and credit payment terms are up to 12 months.
Personal loans are meant to be used for any types of personal expenses from medical costs to education fees, from bounced checks to utility bills. They look a rather attractive option if you have an outstanding bill, for instance. Terms and conditions of personal loans depend on the client's credit history. You can apply for the amounts ranging from $1,000 to $15,0000. Briefly speaking, personal loans are thought to be one of the most suitable options for individuals who want to borrow a relatively small sum of money and are creditworthy enough to repay it in due time.
Business loans are designed to give financial assistance to borrowers who need to fund either a new business or an already operating one. A potential borrower, however, has to be aware of the fact that it is not easy to get your business plan approved by a lender. Moreover, few banks are eager to finance the so-called cash business as their tax records do not always characterize the actual state of things of the borrower's business.