Loans are typically borrowed for different purposes. Some may need it for funding a new business and some may need it to buy something like an engagement ring.
But how do you know which loan type is best suited for your financial need? This article will tell you everything that you need to know about cash advance today loans and which one is suitable for your need.
Types of Cash Advances that You Need to Know
Personal Loans
- You can avail a personal cash advance from any bank. These are unsecured loan types and are accompanied with very high interest rates. The general term period might very and can be for a minimum period of two years.
- Apart from this, borrower will also have to submit some kind of verification proof. This can be anything like income verification or a proof of assets.
- Approval for a loan is usually granted within a few days from the date of application.
Credit Cards
- Credit cards make an attractive source of fund that many prefer to obtain. The interest rates that are a borrower has to accrue can be as high as 20 percent.
- Credit cards are generally of one page application. The process of approval is really fast and a person can easily get approved within a minutes when applied via online or telephone.
- Credit cards are used for a variety of reasons, some of which can be as simple as paying off a drink at a local pub.
Payday Loans
- Payday loans are short term, unsecured loans that a borrower can apply for during an emergency. This is a typical two-week loan that a borrower has to pay back on his next paycheck. And so the annual percentage rate can be as high as 400 percent.
- Applying for a payday loan is easy. People can visit a nearby payday shop or apply online for a quick loan.
- Lenders do not ask for any credit history check but might ask for income proofs such as last month’s pay stub.
- These loan types can be used for anything like paying off tuition fees or purchasing something expensive.
Title Loans
- Title loans are another type of short term loans. They are much like the payday loans. However, borrowers would need to be producing their vehicle as collateral. The typical interest rate can be equal to 26 percent of the value of a car (learn more about car title loans).
- Title loans are easy to apply for either online and offline. A borrower can get approved for a loan instantly within 24 hours from the date of application.
- Lenders do not require any credit history check. However, they might ask for a separate copy of your car keys and title.
Small Business Loans
- This type of loan is extended to would-be entrepreneurs after they have received an approval on a formal business plan. The loan amounts are usually determined on the nature of a particular business venture. This is the same with the interest rate, which usually depends on the lending institution where a borrower is applying.
- During the time of application, borrowers are required to submit a kind of personal guarantee in the form of collateral or personal assets.
- The general time period can be between five to 25 years.
Pay attention to the video describing how to get small business loans:
Home-Equity Loans
- This is a type of loan that a borrower can apply for against the value of one’s home. The interest rate on this type of loans is reasonable. Borrowers can apply for this loan for a total time period of 15 to 20 years.
- Application for this type of loan will require extensive paper work on the part of the borrower.
- The loan is generally used for purposes like debt consolidation or home additions.
Home-Equity Line of Credit
- The nature of this kind of loan is the same as home-equity loans. The only difference is that, borrowers can borrow a lump sum first, repay a portion of it and then borrow again. It is tax deductible and is repayable over a minimum period of 10 to 20 years.
- Interest rates will vary and borrowers will need to discuss with their lenders about to learn more.
Hope this cash advance today guide will help you choose the best loan type for your purpose.
Follow the link to get to know what speedy payday loans are, why use them and how.