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