Borrowing money from others is not uncommon. In fact, many of us have in one time or two have done just that in times of need. It is very tough to come up with extra cash in a short period of time so we borrow cash during emergency circumstances and when we need to pay for a house or car installment, for our child's school fee, or when we want to invest in a business.
Holding a credit card is kind of the same with getting a loan. But when a person owns one, it indicates that their credit is pre-approved. They can borrow money using the plastic card anytime they want, as long as it's not more than their credit limit. They payment is usually on a monthly term with interest, similar with a loan. With loans, however, the borrower first must apply and meet the criteria before the bank or the lending company can give them the money. And to meet the criteria, their credit record and their ability to pay would be investigated. And in some instances, the lender would ask the borrower for a guarantee.
The frequently requested loan type is personal loan, wherein the borrower asks for the loan for relatively small purchases such as furniture and gadgets, or for payment for school, hospital, and vacation trips. Personal loans may be unsecured, which doesn't need a collateral security from the borrower. Unsecured personal loans enables the borrower to get the loan faster and with less forms because the lender rarely considers the borrower's credit record.
There is also the secured personal loan, which allows the borrower to loan higher amount of cash than unsecured loans. But with this personal loan, a guarantee is required, like the deed to the borrower's property or car. If the borrower defaults on payment or totally fails to pay in spite of notices, the lender will have the right to resell the guarantee to regain the money borrowed. Unsecured loans have set payment terms and a higher interest rate than secured loans, which usually has flexible payment terms.
Another personal loan type is the payday loan, which is tied with the borrower's salary. The loan is given right away, and is paid back in full with interest rate on the next payday. This is frequently asked for when the borrower requires cash immediately. The lender will normally confirm the employment status of the borrower before they can release the cash, which is also usually on the same day.
These days, it is easier for people to submit an application for loans through the Internet. A financing firm's web page normally has an online loans application so loan applicants may enter their personal particulars and submit other files faster, allowing the lender time to check the records. This makes the whole loaning process faster, although the borrower still needs to show up in person to the lender's office to sign forms.
Holding a credit card is kind of the same with getting a loan. But when a person owns one, it indicates that their credit is pre-approved. They can borrow money using the plastic card anytime they want, as long as it's not more than their credit limit. They payment is usually on a monthly term with interest, similar with a loan. With loans, however, the borrower first must apply and meet the criteria before the bank or the lending company can give them the money. And to meet the criteria, their credit record and their ability to pay would be investigated. And in some instances, the lender would ask the borrower for a guarantee.
The frequently requested loan type is personal loan, wherein the borrower asks for the loan for relatively small purchases such as furniture and gadgets, or for payment for school, hospital, and vacation trips. Personal loans may be unsecured, which doesn't need a collateral security from the borrower. Unsecured personal loans enables the borrower to get the loan faster and with less forms because the lender rarely considers the borrower's credit record.
There is also the secured personal loan, which allows the borrower to loan higher amount of cash than unsecured loans. But with this personal loan, a guarantee is required, like the deed to the borrower's property or car. If the borrower defaults on payment or totally fails to pay in spite of notices, the lender will have the right to resell the guarantee to regain the money borrowed. Unsecured loans have set payment terms and a higher interest rate than secured loans, which usually has flexible payment terms.
Another personal loan type is the payday loan, which is tied with the borrower's salary. The loan is given right away, and is paid back in full with interest rate on the next payday. This is frequently asked for when the borrower requires cash immediately. The lender will normally confirm the employment status of the borrower before they can release the cash, which is also usually on the same day.
These days, it is easier for people to submit an application for loans through the Internet. A financing firm's web page normally has an online loans application so loan applicants may enter their personal particulars and submit other files faster, allowing the lender time to check the records. This makes the whole loaning process faster, although the borrower still needs to show up in person to the lender's office to sign forms.
No comments:
Post a Comment