Financial Boost: 4 Unique Loans to Learn About
Monday, April 15, 2019, 6:00 AM | Leave Comment
When you’re in a financial drought and you don’t know how to pay for your bills, taking out a loan may be in your best interest.
Attaining a loan can come in many forms with varied terms and conditions. With each loan, there are certain qualifications required before approval.
If approved, you will be given an allotted period of time to pay back the funds along with a small interest rate to pay off.
Understanding the different loans available to you can help you to find the best one that suits your current needs.
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Debt Consolidation Loans
Debt consolidation loans were meant to clean up your current finances. In basic terms, they are made to pay off several or all of your current outstanding loans to avoid late fees. This type of loan makes it possible to not get charged with extra interest rate due to being late. This is best used for those who do not want their credit to get negatively affected.
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Payday Loans
A payday loan is short term with higher interest rates compared to others. This is ideal if you need immediate funds right away to bridge a gap from your last paycheck to the next. This type of loan is mostly used by those living paycheck-to-paycheck. Due to the high interest rates, this type of loan is best as a last option resort.
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Personal Loans
A personal loan is probably the most popular type of loan, as it can be used for whatever finances you need to pay for. There is no designated purpose for this loan providing you with freedom to utilize it however way you deem fit. Whether you want to pay off credit card debt or any emergency personal expenses, you won’t have to explain to the loaning company what it’ll be used for. Due to its wonderful nature, the approval rate is not as high as others with good credit being very necessary.
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Bail Bonds
Bail bonds are a written pledge of funds used to enable people who’ve been charged with criminal offense to legally leave prison as they await their trial. The amount paid varies on the crime and what the court deems is a fitting price. Typically, a bail bond has a fee of about 10% of the total bond.
All loan types have different pros and cons, and doing some research can allow you to figure out which one can best help your situation. They can be beneficial in times of emergency, but never abuse them, as they can negatively affect your credit.
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