Loans can prove beneficial when used effectively. They are essentially lump sums of cash that are paid by check or deposited into a bank account for approved borrowers to use. While these loans do come with terms, added interest, and fees, they can be a real lifesaver when you don’t have the necessary capital to afford the things you need or want. For those who are new to borrowing and the various loans available to you, here is some information to help you choose which loan works best for you.
Installment loans such as those provided by BlueTrustLoans.com offer a quick financial fix for borrowers. Eligibility requirements include being 18 years of age, having a legal place of residence, and proof of employment. Borrowers can typically apply online and get approved for as much as $1250.
Ideal Circumstances: They are ideal for financial emergencies in which you need a little cash and can repay it in a timely fashion. An unexpected bill, home emergency, or car emergency are all great examples of when to use an installment loan.
Personal loans are traditionally provided by banks. They offer a financial solution for borrowers who need a large amount of money for a period of a year or more. Eligibility requirements aren’t as cut and dry as an installment loan. Applicants must have a good credit score, may need collateral depending on the amount of the loan, and have verifiable employment.
Ideal Circumstances: Personal loans can be borrowed over a longer period of time. Consumers use these lending materials for things like home improvement projects, weddings, family vacations, and more.
Banks and other lending institutions are willing to help businesses within their community to grow. Applicants can apply for funds that can be used to finance your business until you start making money. Small business loans can be a bit challenging to qualify for. You will need to have a good personal credit history, bank statements to show where company funds are going, income tax returns, legal documents, and in some cases collateral to get approved.
Ideal Circumstances: Consumers who apply for and get approved for business loans use them for startup costs, marketing, outsourcing, income, and operational expenses during down times.
Lines of Credit
Much like a credit card, a line of credit is a form of loan. Borrowers apply for a line of credit that can range from a few hundred to a few thousand. Consumers are only expected to repay interest on what is borrowed. Thought of as an open-ended loan, lines of credit can be used as often as you’d like. Consumers are able to take as little or as much from the credit line they choose as long as they’re paying the minimum.
Ideal Circumstances: Lines of credit can be used for everything from paying down debts to handling a home emergency and/or funding a business.
This is just the tip of the iceberg when it comes to types of loans and ideal uses for them. There are so many financial products out there that you can use when you’re in a bind. Prior to applying for any type of loan, be sure that you’ve reviewed all the terms and responsibilities