Every once in a while we find ourselves in a difficult financial situation and we simply don’t know what to do next. Unfortunately, life is full of unexpected surprise, and although some may seem good, others not so much.
If you need a fast loans loan monthly payments, you could look online, around the block, etc., there are thousands of options and not all of them are acceptable. You should try to separate the negative forms of loans from positive types. In the end, it all come to you, so here are some few different ways on how to borrow money.
Let’s say you want to start a new small business and you need a loan of $10,000 and you’ll pay it off in 5 years.
Fast loans with monthly payments if you need money right now
First and foremost, you should know one thing. If you need a fast loan right now, you should know that you will most likely pay a higher interest rate on that loan, which means you will pay more in the long run. The worst things about interest rate are that they can snowball and push you deeper down the rabbit’s hole.
Personal bank loans
There are tons of credit unions and banks that offer unsecured personal loans. Simply put, unsecured loans are not backed by your asset. An asset can be your boat, house, car, piano, etc.
Moreover, to qualify for a personal loan, you will need to have a good credit history. There are some tools online that can help you find more information about a specific loan. For example, you can take a look at Bankrate’s personal loan comparison tool. Say you need $10,000 with Prosper. Estimated APR is from 6% up to 6.31%.
Furthermore, having a personal bank loan may not be such a good idea after all. You could pay very high interest and your interest might be raised if you miss monthly payments.
SmartPay (former BillFloat)
SmartPay is a handy service that pays your loans for you. Awesome, right? Well, yes and no.
They have partnered up with companies like StateFarm and AT&T and to get a loan from them, you only need a bank account. Loan repayment happens automatically, and the interest is around 3% per month plus various fees ranging from $14.99 up to $19.99.
All of this has a negative side too. A late fee of $10 is charged each month and the interest is very high.
Getting money from a credit card is as easy as going to your local ATM and taking a cash advance. All of this has a high price, usually, very high. Fees usually range from 2% to 4% and interest rates can be as high as 25%.
Say you miss your monthly loan payment. In this case, you interest rate can be raised and you might face late payment penalties.
Your friends and family might your saviour
Sure, borrowing money from family, especially friends can be very awkward, but in the end it is the safest kind of a loan if you look at it financially.
If you want to feel comfortable (hard, I know) take up repayment terms and work out an interest rate (if any) that you both agree on.
A good example of a long-term loan would be a car equity loan that you repay of the course of several years. They have lower interest rates, but in the end, you pay them for a bigger amount of time. Long-term loans can be:
There are a bunch of sites that offer you long term loans with monthly payments such as Prosper.com and Lendingclub.com.
To qualify for a loan, you will need a close to perfect credit score and interest rates usually start at 5%. On the other hand, if you have a bad credit score, interest rates can go as high as 35%, so be extra careful.
There are also some fees involved, usually from 0.5% up to 5%. Fees usually depend on your credit history.
Have you thought of secured bank loans
If you take a secured bank loan, that means that you are taking a loan that is backed by some assets. For example, that can be your car, boat, house, furniture, etc. Interest rate varies depending on numerous factors and it is usually around 5%.
The risk? Very high, if you ask me. Since this is a secured loan and you don’t want to play games with your bank, you could your home or some other assets if you default.
What types of loan should I avoid?
Unfortunately, there are some unscrupulous people and companies that scam you as much as possible. Usually, these types of loans are payday loans and pawnshop loans.
On paper, it may seem like they do not charge much, but when you look at their interest rates, they can go as high as 500%.
To filter out bad ones from good ones, you should search on the internet first. Again, these are tons of tools, databases, etc. which will help you to find the right fast loan with monthly payments just tailored for you. Make sure the loan company has a physical address, they should have sort of customer support, and do not forget to check their Better Business Bureau rating.
To sum it all up, hopefully, you would not need any of these types of “scam” loans to fund your financial crisis.