Taking out a loan isn’t the easiest thing in the world, but with a quick look at your situation, you will find it is easy to see which type you should choose. Let’s do some loan comparisons and find out which loan is for you. The payday or payday advance-style loan is the quickest and easiest way to get a little extra cash when you need it. You simply bring in your previous pay stubs from work and they will advance you the amount of an average pay for several weeks.
This type of loan can be obtained at a variety of small business chains across North America. The biggest drawback to this loan is that the interest rate is quite high. However, if you need money fast, a payday advance can help.
Another type of loan is when we use the value of an asset, like our house or car, to get a loan. This is known as a secured loan. In the instances that you cannot repay the loan, you have agreed to use the asset as repayment. This type of loan works well if you need a larger sum of money. It usually has a decent interest rate, but can be long term. You may find yourself repaying for a while and paying out a lot of that small interest.
There is another type of loan that we all know pretty well. It is called an unsecured loan. This is the type of loan where you go to the bank, show your need and hope that they approve you for a loan. This type of loan is generally for those with a good credit rating.
There is no chance of having assets repossessed, and the interest rate is fixed. This is the safest way to borrow if you can qualify.
The last type of loan we are going mention is called a consolidation loan. The term ‘consolidate’ means to take many and make into one. With a consolidation loan that is exactly what you are doing. You are taking many different loans with many different interest rates and pay structures, and moving them into one.