Everyone wants to improve life and buy everything that is needed for comfort. At present days it is no longer necessary to save necessary amount of money for a long time to purchase all desired things; it is enough to apply to bank or some microfinance organization, to get a speedy loan (https://speedy-payday-loans.com/) and you are a happy owner of required goods. But is it really necessary to take these loans? What you need to pay attention to before and during credit arrangements?
There are several types of loans:
- cash loan — provided for any borrower needs, without security, with or without warrantor, depending on the bank;
- fast loan — in fact, the same as cash loan, except for its consideration takes not more than one day, but loan amount is also rather small;
- microloan — convenient for small loans, momentary granting with only passport required; as a rule, average loan term does not exceed one month, but remember, these loans are often provided at high interest rates;
- mortgage loan — for real estate purchase, which bank holds in security for full loan repayment;
- credit union — essential condition for such creditors is a membership in union, this means additional membership fees, which significantly increases loan overpayment; the advantage is quick loan granting after interview;
- auto loan — provide car instead of cash; just as in the case of mortgage loan, the car is held in security for full loan repayment;
- secured loan — bank, as a security holds personal and real estate, as well as stocks and paper holdings.
These are the most well-known loan types. So, if you decided to take a loan, you need to consider all possible risks and benefits of «quick money».
Disadvantages
Today many banks increase credit cost by commissions and taxes hidden at interest rate. According to law, banks are required to inform the borrower about full credit cost taking into account all additional payments, fees and terms of payment. Also, contract must have loan payments schedule, which determine dates and amounts of payments. If there is no such document, you have a right to demand schedule changing and making it clear for you.
The contract should also clarify how you can repay loan ahead of schedule. Ask about this information, as for the own benefit banks can not offer to explain it. You also need to pay attention to sanctions and charges for timely debt repayment violation. Read them very carefully.
Some banks charge penalties for minimal number of days after payment. It happens that overpayment for purchased goods results in unpleasant consequence: «One for the price of two».
Another integral part of loan is timeous payment, and it can last for a very long time. The joy of purchase will disappear very soon, but the loan will still need to be repaied for a long time. And remember, if bank employee prevaricates and doesn’t tell you necessary information, think whether it is worth working with this bank.
Advantages
But things are not all that bad, lets consider speedy loan benefits. The very first thing – is certainly an opportunity to purchase items at once, that is, you do not need to save money and deny yourself any luxury for economy reasons for a long time. This especially convenient for those who are not able to save money.
When taking inexpensive goods or small amounts of money you can repay small and available sums. Do not forget that timely loan repayment positively affects your credit reputation and in future banks will be willing to work with you and offer better loan conditions. And this will help to reduce loan interest rate.
If you want to take speedy loan, firstly read article “Things to Consider Before Taking a Payday Loan“.