Each day we get a variety of questions from our website visitors about the different types of loans and financing options. If you do not see the answer to your question below, please feel free to contact us.
What is a secured loan?
A secured loan is one that the borrower pledges some asset as collateral for the loan. Basically, it is your promise to the lender that you will repay the loan. If for any reason, you default on the loan, the lender will take possession of your property and sell it to recoup the loss. Common assets that borrowers use for collateral are vehicles, recreational vehicles, valuable jewelry, land, buildings, and even livestock.
What is a personal loan?
A personal loan is not usually secured against any property or asset. Typically, personal loans have a fixed interest rate. A personal loan can be a small or larger loan amount, and to get the best interest rates, your credit must be above 650.
Can I get a loan if I have bad credit?
The simple answer is yes. However, loans for people with bad credit normally have a higher interest rates, and may come with some stipulations. Many times, lenders will be willing to give you a second chance at proving that you are credit-worthy providing that you are employed and are able to meet the other lender requirements.
Can I get a loan if I’m unemployed and have bad credit?
Generally lenders will not approve a bad credit loan unless you can show income. Usually the income requirement is a minimum of $1200 a month for the previous three to six months.
What is a short-term loan?
Loans that are considered short-term include cash advance loans, title loans, and even pawn loans. The main purpose of these types of loans is just to provide you with the necessary means to get by until your next payday if an emergency arises. Short term loans should be repaid in 30 days or less.
Are payday loans ever a good idea?
Payday loans might be a very high interest loan, but in some instances, might be the only loan available when you need money quickly. If you are in a tight spot, have no credit or bad credit, a payday loan can assist you in times of dire need. If you do repay the loan within a week or two, the interest rate will likely be less than fees incurred if you were considering over drafting your bank account.
Can I use a loan to pay for a wedding?
Yes, for many couples, financing their wedding with a loan at a reasonable rate of interest is an option.
Can I get a car loan or personal loan if I’m a student?
Students do get approved for loans. However, like other borrowers, they must meet the minimum requirements and be able to show a stable source of income. Many times, car loans have first time buyer programs and down payment assistance programs especially for students and those who have just graduated.
Can I get a loan to pay for a holiday or vacation?
Getting loans during the holiday season is very popular. During this time of year, many lenders offer a variety of special deals; a popular personal loan offer is no interest for six months. Of course, this is a great option if your budget allows for payments during the following six months. What a lot of people do not realize is that if you do not repay the loan during the special offer time, the interest you will pay starts the day the loan was accepted.
What are the interest rates on business loans?
Small business loans have varying interest rates. Often the interest rate will be determined by the business owner’s credit, and the financial strength of the business.