As in today’s world, living a luxurious life is that which everyone desires either they are earning an average income or more. But folks, who normally earns around $3000-$4000 per month, they can only manage their regular expenses. What if you want to purchase something big but can’t pay the full payment at once? For such circumstances, loans are designed which can help you in your present notion. Not only to purchase but for any other purpose like in some urgency when you have a lack of cash, for that situations also short-term loans
Now the question arises from where you can borrow money? Is there the only way that is banks or any other method is available?
Actually, it depends upon your loan type and requirements that you can fulfill the lender. Such as banks, which ask for your credit scores and collateral but if you can’t meet their requirements then you may have other options too, for instance:
- Credit Unions: It’s a kind of particular organization or which is run by several groups of people. Like banks, they also provide various offers. Though they may be helpful for the people who have bad credit scores, unlike banks.
- Storefronts: In many countries, there are so many stores, from where you can avail of the small number of loans for a shorter duration. It’s basically for sudden needs when you can’t fulfill the requirements of heavy documentations in banks. This option is still open for you even you have poor credit scores.
- P2P: Means Pear to Pear, it’s not any legal lending method but one can borrow some money from the other person on some interest, on which both the parties agree. In fact, there are various platforms also where you can find your lender who matches with your requirements.
- Online lenders: If you don’t want to visit to apply for the loan then no need to worry as there are so many loan providers who work fully online from application to repayment, the whole process would be on your fingertips. You just need an internet connection and computer to apply with the basic information of yours. And few details like your employment proof, your age and id proof, you have to upload them online. So, worries about faxing and heavy documentations.
- Payday loan providers: Payday Loans are short-term loans for a small amount, that can be borrowed without any credit check and collateral. Payday lenders usually offer a maximum amount of $1000 which you’ll need to repay on your next paycheck. Otherwise, it will cost you even more and can worsen your situation. As, its interest rates are already very high, nearly 300% to 600% of APR. That’s the main reason, why it is always said to be the last option.
- Credit cards: In an emergency, when you don’t have enough time to apply for the loan then this would be the best option for you. But you must be aware of its cost because it may prove expensive to you due to its charges that’s why it is important to pay at least the minimum amount every month. Though, you should try to pay as much early as you can.
- Close ones: This option doesn’t work for all, as some of you may have people around you who can help you financially but it may also create friction among the relationships. But still, if you get some help from your close ones than you may save heavy interest rates though.
All these methods of borrowing money are newly formed, but the traditional way of the lending industry is the bank. Banks can offer you a long-term loan of big amounts such as Mortgage, Commercial Loans, Personal Loans and Auto loans which you have to pay in installments. You can fulfill your desire of buying a house, car or refinancing your previous loan. But the procedure of getting approval from banks is quite long as it takes few days for the verification of your docs properly because it requires a bunch of documents along with your credit reports and collateral papers if any.
Thus, these are some ways to get some financial help when you need it.