4 Best Loans You Can Avail At The Need Of The Hour
Whether the nation is going through an economic boom or a recession, there are always going to be people living paycheck to paycheck. Getting off of that lifestyle may be your main goal, but until times get better you may have family issues or emergencies you have to deal with that keep you from it. If you don't think you can get through these emergencies paying out of pocket, there are loans you may be able to use to make your payments. Here are four types of loans that could be used for emergencies.
Personal Loans At Your Bank Or Credit Union
Sometimes banks or credit unions are thought of as the last place you should look for a personal emergency loan because they're usually known to only lend to people who fit a certain profile. Plus, they're sometimes known for long waits, less than stellar customer service and lengthy approval decisions. But some banks and credit unions have become aware that more and more people face hardships where they need cash soon and can't wait for the usual approval process to go through. As a result, they've started ushering in small dollar loans that don't have as strict requirements to be approved for, and borrowers can usually get fair terms that come with them. Banks and credit unions do tend to reserve these loans for members who've been with them for a while and have kept their accounts in good standing.
Personal Loans From A Local Pawn Shop
One source you can turn to for borrowing money if you can't find the right bank loan, is a pawn shop. These shops sell conglomerates of used items usually at cheaper prices than you would find at a regular retailer, but some also offer check cashing and loan services. With these loans, you need to offer items of value that the pawn shop dealer would be able to sell off if they had to, and if they're willing to take your items you can get a loan for them. Regular household items usually won't allow you to borrow much, but if you have items that are a little more valuable such as family heirlooms or antiques, gold, or jewelry, you may be able to borrow more. Payment terms vary with pawn shops, but they usually allow you to make a minimum loan payment each month to extend it another, or pay your loan off in full to get your items back.
Personal Loans In The Form Of Payday And Installment Loans
There are alternative loans that probably shouldn't be the first place you turn to for emergencies; but if times are very hard, then online payday loans California might be something to consider. Getting one of these loans depends on the lender's requirements and state laws that govern them, but usually decisions are made based on your weekly, bi-weekly or monthly income amount. Payday loans are usually offered in one of two forms:
1. Traditional payday loan where the amount you borrow plus finance charges must be paid in full on the due date
2. Installment loans where you have your payments spread out over a period of time
One benefit to these loans is that you can apply online and usually not have to worry about traveling to a physical store. Approval and funding is possible to get in as early as one business day, though that could depend on your financial institution.
Loans From Family And Friends
Sometimes the best place to go when you need to borrow money is from people you know such as family and friends. If they don't offer to help you with your emergency situation as a gift, they may agree to lend you money if you offer a written and signed agreement to pay it back at a certain time. If they're even more generous, they may allow your to pay them back in the form of doing repairs on their house, taking care of young children or helping with other needs they may have. But usually assistance from people you know will be less stressful than loans from businesses.
In conclusion, it's usually better if you don't have to take out a loan at all, especially if you can budget and save to cover unexpected emergencies. But you should never panic if you need to borrow money because you usually have more options than you think.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.