Everyone needs to get a loan at least once in their lives. Whether it's because of a financial issue or due to changes in circumstances, everyone needs to look at their financial situation and get a little help when it comes to money.
But, as you start to look at what may be available here and how you want to do things, you may notice that there are a lot of different loans to choose from. What are they? What should you be exploring and how can you be sure that you're able to find the best loan for your needs and what you're going to be able to pay? Let's take a look at some of the most common loans.
Hard Money Loans
There are so many different loans that fit in this category but, in short, these are loans that are backed by real property of some sort. The most common of these is a home equity loan, where you borrow against your home for whatever it is that you need a loan for.
Other loans, like online payday loans for bad credit, work with you in order to ensure that you can get the funding that you need for something like an online payday advance at Personal Money Network. Title loans, which are loans where you borrow a loan against your vehicle's title, are also fall in this category of "hard money loans."
Student Loans
Most college students have to take out some sort of loan in order to be able to proceed with their education. Student loans come in many forms, from government based loans to individual bank loans. You'll have to talk to your individual lender if you need a student loan from a private bank.
Government loans are often a better choice in relation to bank loans for students, because they typically maintain a smaller rate, and you have more options after you complete your degree. You typically do not have the 6 month grace period after graduation, and you may not have options to put your loans into forbearance or income-based repayment programs.
These loans are going to vary based on availability and eligibility, and you may have to do some research if you're going to take care of this sort of thing. Student loans are their own category of loan and, as a result, you'll have different rules about how to pay them back and what may be necessary to be eligible.
Consolidation Loans
These are loans that have been made available so that people can consolidate their debt in one way or another. They're most commonly used with student loans, credit card debt, and other forms of debt that may be overwhelming.
In short, these types of loans can help you to get a lower rate and ensure that you pay one low payment instead of balancing a number of them. In many cases, they are used as an alternative for bankruptcy, if you can get approved and you'll be able to actually pay things off according to the consolidated rates and payment plan.
Before you take out a consolidation loan, be sure to talk to a financial advisor. Consolidation loans could make you ineligible for certain types of loan forgiveness related to your debt. An advisor can give you guidance on how that does — or doesn't — affect you and your situation.
Personal Loans
Personal loans are the category for pretty much any other type of loan you may be looking at or exploring. Car loans are often personal loans, or you may want to take out money to do a home remodel or to go on a trip.
In any instance, there are a lot of personal loans that you can use for personal reasons, as the name suggests. They have a low APR and are usually fairly easy to get through your bank. But, if you have a poor credit score, you will likely find it difficult to actually get the resources that you want and need for these.
Finding the Right Type of Loan for You
You want to be sure that you talk to a loan professional before you decide what you're doing to do and how you want to get there. Look into the many ways that you want to proceed with borrowing money and see why it's such a big deal to go about it in this fashion. Looking at and understanding loans can help you to make the right decision about what loan is best for you.
