When You Need Some Extra Cash--A Guide to Finding the Right Loan by Larry Denton

Almost every day, you are involved in some type ofimprovement loans, home equity loans, refinance loans,
financial transaction requiring an educated decision. Andpersonal loans, payday loans, and bridging loans (used
we all need extra cash from time to time. Maybe youto "bridge" a short-term financial gap when cash is
need extra funds to purchase your "dream" home, orneeded for a special project). There are nearly as
a more reliable vehicle. Perhaps you want to providemany loan types available as there are reasons to
that "fairy book" wedding for your only daughter, orborrow money. Approval for loans is based upon a
take that once-in-a lifetime paradise vacation.number of factors, such as age, employment, income,
Sometimes it is simply not practical to make aand credit rating.
purchase by saving up the cash, and that's where aEven if you have a poor credit rating or bad credit
loan can help. Nearly everyone needs to borrow athistory, you can still find a range of "bad credit"
some time in their life--to finance a house, buy a newpersonal loans, although the interest rates are generally
automobile or send the kids to college. But with sohigher than on standard loans. Beware, however, of
many different types of loans from so many differentthe "payday" loans. Sometimes called cash advance
financial institutions, how do you decide which is bestloans, check advance loans, deferred deposit check
for you?loans or post-dated check loans, however check
When you set out to borrow money you are barragedcashers or finance companies refer to them--they are
with the jargon of the banking industry. Revolving loans,EXPENSIVE.
points, adjustable rates, bridge loans, beacon scores,Usually, a borrower writes a personal check payable
amortization and on and on and on. It is important toto the lender for the amount needed plus a fee. Let's
understand these terms in order to get your bestsay you need a quick $100 and write a check to the
possible deal at the lowest interest rates that arelender for $115. You receive $100 and the lender
currently available. Take some time, research theagrees not to deposit your check until your pay day
terminology and become a smart money shopper.arrives three days in the future. It cost you $15 to
Not many years ago, banks were the only "boys onborrow $100 for three days! You don't even want to
the block" when it came time to obtain a loan. You gotknow the Annual Percentage Rate (APR)on that loan.
dressed in your finest outfit, got a haircut, and shinedWhen you need credit, shop carefully. Compare offers
your shoes in advance of your meeting with the bankand institutions. Look for loans with the lowest APR.
manager. Today, loan providers are everywhere.Compare the total finance charges, which include fees,
Supermarkets, credit unions, television ads, daily creditinterest and of types of credit costs. By going online
card offers in the mail, finance companies, and theyou can obtain a multitude of loan options including:
payday loan building on the corner. Where do youinterest rates, length of the loan and the actual total
start? Obviously the first question--how much moneymonthly payment cost.
do I need?--must be answered. If you are shopping forLearn the lending terminology, understand the different
a home, for example, you will not be using a credittypes of loans that are readily available and then make
card. Here is where your neighborhood bank can help.a choice that is best for your unique situation. In the
And even Uncle Sam--if you get a Veteran'sborrowing world, there is no "one-size-fits all" solution.
Administration (VA) or a Federal HousingYour credit history, ability to repay the loan in a timely
Administration (FHA) loan.fashion, and the purpose of the loan should all be
Other types of loans available include: car loans,thoroughly considered.
business loans, debt consolidation loans, home