Ara Betty is a freelance financial writer and speaker about personal financing. She helps people realize their goals on becoming debt free with the use of debt consolidation. She hopes to expand her knowledge more about loans and debt to be able to write a book.
The Deal with Guaranteed Loans
Have you ever found yourself in a situation that needs cash to solve it? However, you might notice that your bank account is low and you are lacking in funds, which can be a serious issue. Thankfully, there are lots of ways you can fix your problem. One of the fastest ways you can solve those problems is by getting guaranteed loans.
These loans are an easy way to get fast cash without all the hassle. However, you should always learn more information about personal loans before taking one out, that’s why we are giving you the low down in this article to help you learn more about guaranteed loans.
What Are the Reasons I Would Need to Take Out a Personal Loan?
Everyone will not have the same problem, however there are certain situations that many people will come across in their life. For example, an unexpected trip to the hospital can easily set you back a few hundred or even possibly thousands of dollars!
You might have some cash saved up for a moment like that, but that may not be enough to cover the entire amount required. To help you pay off the bill as fast as possible, you can apply for a payday loan to get you some of your salary as quickly as possible.
Another good reason why you might need to apply for a payday loan is because you need to pay for the bills in your house. It is hard to make ends meet every month, and you might find yourself stuck that month.
If you let those bills go unpaid for, you can get your electricity and water disconnected! Getting those types of things reconnected actually costs a lot, and you don’t want to pay for the reconnection fees along with other late penalties.
By getting a personal loan, you will be able to pay for the bills before to avoid paying for all those extra fees.
Learn the Difference Between a Secured and Unsecured Loan.
You don’t want to make the mistake of getting a payday loan and not knowing what type of loan it is. Of course, in the end it just means that you are borrowing money that you will have to pay back, but there can actually be a lot more to it. For instance, you ought to know whether you are getting a secured or unsecured loan first. They both involve lenders lending you money and then you paying the lenders back, but the terms of these loans are different.
Here is a quick rundown to help you understand the difference.
1. Secured Loans
A secured loan is one of the most common types of loans that you will find. Most lenders will prefer this method as it is considered a safer option for them to take. Generally, you will have to put collateral in order to get access to the loan, and the collateral required for the loan will depend on the lender.
For example, auto lenders will normally use the car that you are getting with the loan as collateral, so if you default on their payments they will take the car to compensate for their losses. Most secured loans will ask for your home or your car as collateral for their payday loan.
This may seem bad, but there is an upside to the secured loan. Generally, you should expect to have a smaller interest rate charged since you are putting your property on the line. Collateral serves as security for the lender, so in turn they will charge you a lower interest rate which can be in your favor. That way, you won’t have to worry about paying off a large amount of debt due to a large interest rate.
2. Unsecured Loans
This is another payday loan, however the main difference between this type of loan and the secured one is that it involves no collateral. Therefore, you won’t have to worry about potentially losing your home or your car due to lacking payments.
Additionally, if you do not have any property to place as collateral, if you are renting an apartment and don’t own a car for example, you don’t have to worry about applying for a loan. However, that shouldn’t be an issue in the first place if you are sure you will be able to pay off the lender.
Although, keep in mind that this also has its downsides. To make up for the lack of collateral that you placed, most lenders will charge you a significantly higher interest rate compared to a secured loan.
This is to make up for potential losses, that way if you are able to pay off at least half of your loan, the lender can break even for letting you borrowing money. However, this type of loan is usually not that common, as it is not that good for both the lender and borrower.
Normally, we would recommend that you choose to get a secured loan, especially if you are sure that you can pay off the lender with no issue. It comes out more affordable for you and you won’t lose your property given that you have paid them back.
However, not everyone will be able to get a secured loan due to a lack of property, so you may choose to get an unsecured loan. Keep in mind to be aware of the total costs of the loan before agreeing to it to make sure you won’t be in anymore debt than you already are.
Where Can I Learn More About Guaranteed Loans?
If you are looking for the best place to find information regarding a payday loan, then you ought to check out PushButtonFor.org. You’ll find many helpful of articles with information that you need to know about loans.
They tell you every detail regarding the qualifications that you need to have, what to look out for, what they lenders can offer, and more. Feel free to contact us if you want to have your questions answered.