If you’ve had an expense rear up and don’t have the means to pay for it, you might feel at the end of your rope, wondering how to pay for it. It’s time to consider a personal loan.
While there isn’t much of a limit for what personal loans can be used for, different rules and considerations for borrowing may apply depending on why they’re needed. Your credit score and financial situation may also dictate what options are accessible to you.
If you have been shopping around with your local banks and credit unions and are unhappy with their services or turnover—or can’t even get your foot in the door—looking into online services such as MaxLend loans can expand your options and get you covered quicker.
Revolving Loans
These are called “revolving” because while there is a ceiling on how much can be borrowed at one time, you can continuously dip into this line of credit for expenses after paying it down. Interest is accrued over time, so if possible it’s best to pay off expenses as soon as possible rather than letting them linger.
There are a few different ways to access this method of borrowing. You can simply apply for a credit card, which lets you pay your bills and make purchases and then pay the total cost back over time. Home Equity Loans tend to have amazing interest rates, but if you can’t pay them back you will be at risk of losing your home so they are best left alone unless you’re extremely sure you can make payments on time.
Secured Loans
The security here is for the lender in the form of the required upfront collateral you provide. These are typically items or property you own that have significant value. If you can’t make payments the collateral goes to the lender to cover costs.
These are installment loans, which you repay over a set amount of time. MaxLend reviews in particular indicate flexible payment schedules that can range from weekly to monthly, though this may vary from lender to lender.
Unsecured Loans
These are pretty straightforward and, technically speaking, easy to apply for. The lender gives you a single payout and forms a repayment plan determining payment size and duration.
The catch here is that you need near-perfect credit to qualify for these as lenders don’t require any sort of upfront collateral. The interest rates may also be higher than secured loans. These are also considered installment loans.
Payday Loans
If you have a sudden expense (under $500) that can’t wait until your next paycheck, a payday loan may be the most immediate solution to your problem. These are the quickest of the quick loans available, often with money available the day of application.
To apply you don’t have to have an amazing, or even passable, credit score. However, these should be pursued only if there are no other options as their high fees and interest rates can make bad credit worse if they aren’t paid back immediately.
When it comes to unplanned expenses, you don’t have to wait. Personal loans can turn these roadblocks into just speed bumps, ensuring your life can continue peacefully.
